Gala to set up 40 new shops

THE Gala retail group is to set up 40 new shops and create 500 jobs involving an investment of €48 million over the next 12 months.

The group has 200 shops nationwide and sales have been rising rapidly since it started business in 1998.

Turnover has risen from less than €1m in 1998 to an annualised figure this year of €420m while year-on-year sales were ahead by 27%.

Gala made the announcement at its annual conference in Galway yesterday.

It currently sources €150m from Irish suppliers.

Owned by 17 Irish wholesalers, the group employs more than 3,000 people in Ireland. The 200th Gala store opened in Ballycullane, New Ross Co Wexford last Thursday.

To boost growth the group has announced an investment of over €400,000 in a new TV campaign.

Chief executive Tom Keogh said 2005 has been a tremendous year for Gala and the latest plans are further indication of the group's determination to play an increasing role in the Irish retail sector.

Gala, Gala Superstore and Checkout, are the three symbol groups operating under the franchise involving 80 Checkout stores and 199 Gala stores nationwide most in rural locations.

Its eight superstores are located in Cong and Ballindine, Co Mayo, Scarriff and Ennis, Co Clare, Swords, Co Dublin, Portumna and Corrandulla, Co Galway, and Drumshambo, Co Leitrim.

Just under half of stores are on garage forecourts, with two-thirds owned by retailers and the remaining leased.

Given the growing interest in the franchise several of the new stores are expected to be on greenfield sites, said Mr Keogh.

He said that while Gala does not have own-branded products, the idea of a Gala brand was being mentioned more and more as a distinct possibility.