Roches Stores to give up grocery trade

Conor Keane, Business Correspondent

Roches said the jobs of the 350 employed are secure as they will transfer to the new operators. The Caulfield McCarthy Group is to lease Roches’ large Supervalu supermarkets at Patrick Street/Merchants Quay and Wilton, while Marks & Spencer is to develop stores featuring both food and clothing at Roches’ store in Blackrock in Dublin and Galway’s Eyre Square.

The retreat by Roches comes in the wake of stiff competition. Dunnes, Tesco and German discounters Aldi and Lidl are engaged in a fierce battle for market share that also contributed to the decision of the Quinn family to sell the Superquinn chain for close to E350 million.

Less that 12 months ago Roches took its first steps towards exiting the supermarket business when it closed grocery stores in Limerick, Dublin and Blanchardstown. Then the company dismissed the idea that a total abandonment of its traditional grocery role was on the cards. Roches had earlier closed a grocery store in Waterford.

The Roches’ decision will be a blow to morale at Musgraves but has been more than offset by the group’s status as the strongest Irish retailer and the only one to be included among the top 250 retailers worldwide in a Deloitte study published yesterday.

In a statement, issued jointly with Roches, Musgrave SuperValu Centra MD Dónal Horgan said that while they are disappointed to lose the food business in Blackrock and Galway, they are delighted that one of their largest retail partners is committing to operate both Patrick Street and Wilton.

“We anticipated this move by Roches Stores in Dublin and Galway some time ago and we have already replaced this business through an aggressive new store opening programme. In 2004, we opened 14 new SuperValu outlets throughout the Republic of Ireland,” he said.

A spokesperson for Roches Stores said the move will allow Roches Stores “to focus solely on the continued development of our unrivalled choice in fashion and homewares.”

The closure of the existing supermarkets will take place in Blackrock on Wednesday, March 2 next and in Galway on Monday, March 21, with Marks & Spencer expected to be operational by June 2005 in both locations.

The Caulfield McCarthy Group will take over Patrick Street and Wilton from Wednesday, May 3. The New Ross-based group, which has a turnover of close to 100 million,

already operates SuperValu stores in Bandon, Waterford City, Tipperary Town, New Ross, Enniscorthy, Loughboy in Kilkenny and Malahide as well as a number of shopping centres.

Caulfield McCarthy face tough competition in Cork as it goes head-to-head with Tesco in Wilton and will have to react to the opening of the 250m Mahon Point shopping complex.