Centra centres in on €1bn barrier

CONVENIENCE store chain Centra has the €1 billion barrier in its sights after recording sales of €930 million in 2004, an increase of almost 10% on the previous year.

The Musgrave-controlled chain, which operates more than 350 shops, said yesterday it would open another 35 shops in the year ahead. These would create a further 525 jobs to add to the 10,000 currently employed by retailers that are part of the chain.

Centra managing director Donal Horgan said the Irish market had become increasingly competitive and that retail prices were falling.

Mr Horgan thanked the quality of Centra store operators for the improved sales figures.

“Our performance in 2004 is a tribute to the hard and diligent work of our very focused and entrepreneurial retail partners, who make up the Centra independent store network,” he said. “We are currently operating in a market that is growing modestly and where retail prices declined in 2004.”

Average weekly turnover remained strong at €50,000 per shop.

Speaking at the chain’s annual conference for retailers in Killarney, Co Kerry yesterday, Mr Horgan also said an extra 225 jobs would be created in the in the coming year from plans to extend or refurbish 45 stores in the existing network.

More than €70 million will be invested in stores during the year, an increase of €20 million on the 2004 figure.

The company has also spent €1 million on expanding its offering to include the “Good to Go” range of branded products, which includes prepared salads, packaged sandwiches and drinks.

The range was launched in a small number of stores on a trial basis over the last six months but already accounts for more than €6 million in sales. The range will cover 32 stores in selected locations before the end of the year.

Mr Horgan said Centra was well positioned to take advantage of new shopping habits. Consumers were expressing greater preference for convenience stores thanks to changing lifestyles, he said. The company had responded by providing greater innovation, which included healthier food that was still more convenient than traditional offerings.