Musgrave was trying to get hold of Superquinn for years, says Martin

MUSGRAVE chief executive Chris Martin said the company has been trying to get its hands on Superquinn for “many years”.

The group said that now it has received Competition Authority approval for the takeover of Superquinn, the challenge is to determine where the brand is going to go.

“It gives significant presence to Musgrave in Dublin,” he said.

The company has no plans, however, to expand Superquinn in the Cork region.

He said that Superquinn was a business that was “significantly challenged”, adding that for “every euro of turnover, there was a euro of debt.”

He said that Superquinn is just 12% of Musgrave’s retail sales in Ireland. He also highlighted how the Musgrave brand, Daybreak, is now half the size of Superquinn.

Musgrave is expected to announce its plans for Superquinn on Tuesday.

Speaking at the Irish Examiner-sponsored Cork Chamber business breakfast yesterday, Mr Martin said he will now attempt to stabilise the business.

“The Superquinn brand has huge iconic recognition in Ireland… but for the last five to six years the business has fundamentally struggled,” he said.

He said the key for Musgrave is to recognise Superquinn’s strengths, adding that the company’s big success has been seen in the “centre of Dublin”.

“The reality is there’s a lot to do… but it is a question of watch this space.”

Mr Martin said the focus for the company at the moment is on getting a hold of the business.

He also said there are “green shoots” on the horizon in terms of the overall economy. Musgrave employs 50,000 people and is the country’s second biggest employer.

Mr Martin said that the company will be the biggest investor in Ireland this year, investing €315 million.

He said the consumer market is an “incredibly tough market” adding they are seeing minimal growth this year.

He said last year’s budget took an average of €350 out of the average household income and Musgrave estimates this year’s budget will take a further €200 out of annual household income. He said that, as a result, retailers have had to adapt and adjust.

He said that in 2009 the price difference between the North and South was 34% while today it is 10%. The company was “really challenged” in bringing that 10% down, he said.