4Homes set for nationwide expansion drive

DAIRYGOLD’S DIY and homeware retail chain - 4Homes - has plans to double its turnover to €160 million within the next two years.

By the end of 2007, it hopes to have 30 4Homes Superstores outlets throughout the country - it currently has 11.

At present the chain consists of four branded stores while the rest are at various stages of development.

A further 10 sites have been identified and will consist of a mix between franchise operators and company operators, said 4Homes chief executive, Simon Healy, who joined the group 18 months ago.

“We would hope to establish 30 stores within the next two and a half to three years,” said Mr Healy.

4Homes is endeavouring to do with DIY what the grocery trade did through the symbol groups over 20 years ago.

Mr Healy hopes that with the franchise fully established, independent retailers in the sector will want to sign up to the 4Homes brand.

Entry will be strict and stores will be between 13,000 sq ft and 30,000 sq ft in size.

“They will not get the franchise unless they conform to our specification,” he said.

With €4.5bn due to break into the market following the maturing of the SSIA’s, Mr Healy is looking forward to an upsurge of DIY activity.

Gardens are also becoming an increasing focus for home owners and Mr Healy intends to add garden centres to his strategic plan to ensure he captures a slice of that lucrative side of the business.

“It’s got to the stage in this country where in a four bed semi-detached house, the back garden has become the fifth room of the home offering huge potential to the sector,” he said.

To ensure a smooth roll out of the plans, Mr Healy, who worked for Top Shop, part of the Londis franchise, has strengthened the management team.

“A full back up system is in place to ensure centralised buying and all of the systems back up that someone signing up for the McDonald’s franchise can expect,” he said.

Two new 4Home stores totalling more than 60,000 sq. ft. in retail space and creating 70 new full and part-time jobs were recently announced by the group.

Planning permission has been granted for the stores which will be opened in Portlaoise and Macroom.

The 25,000 sq ft Portlaoise store will have a 10,000 sq ft garden centre and create 40 jobs. The store will be located close to the Laois Shopping Centre

Mr Healy expects the strategy will serve, not only Dairygold well, but other independent retailers, who will not survive unless they embrace the support of a franchise to shield them from the competitive power of the big DIY chains, such as Atlantic, B&Q and Woodies.