Centra MD Ian Allen identifies soaring business costs as sales rise to a record €2.1bn 

Centra's managing director says their record year was boosted by 10 new store openings — but that energy prices, interest rates, theft, and staff costs were affecting retailers' margins

Musgrave Centra SuperValu MD Ian Allen attributed Centra's bumper year to new store openings and sales growth in categories such as on-the-go food, bakery, and coffee. File picture

Centra managing director Ian Allen has welcomed a record year for the retail group, with total sales exceeding €2.1bn in 2023, even as the business faced major cost challenges.

Speaking to the Irish Examiner, Mr Allen said the cost of doing business was putting many companies under severe pressure, and has been made worse by a surge in the number of thefts at the stores amid the cost-of-living crisis.

“People think theft is a victimless crime but it is not,” Mr Allen said.

“Many retailers work in very low margins, so anyone just walking out the door reflects a direct hit to the business,” he said.

He said Centra had recorded “a 100% surge” in the number of thefts, in urban and suburban areas, in particular.

“It is quite unfortunate and extremely intimidating for our staff members, but we are working closely with the gardaí and support any measure that will help in this space,” Mr Allen said.

However, the Centra managing director said increases in the number of thefts were just one of several major costs that were facing the business.

He cited high energy prices which he said were still more than double their levels before Russia invaded Ukraine.

As well as a slew of new Centra stores, Musgrave managing director Ian Allen has expanded SuperValu's offering too. He is pictured with Tomás Singleton at the official opening this winter of his revamped Singleton's SuperValu in Hollyhill, Cork. Picture: Eddie O'Hare

There was also rising interest rates, and government labour policies, including minimum wage rises, sick pay, and pension auto-enrollment, he said.

“When you add up all of those costs, it is quite significant,” Mr Allen said.

With several new measures set to come in this year, the managing director said he was “extremely disappointed” with the Government’s budget measures. He said that while the company supported all measures that benefitted its staff that “the problem we face is that when you add up all of the measures and their cumulative impact, it’s an awful lot for any retailer to bear”.

Despite the growing costs of doing business, Mr Allen said the retailer had posted a record year, with total sales of €2.1bn for 2023.

Speaking on the group’s sales, Mr Allen said the bumper year was driven by three major factors, including 10 new store openings which “heavily contributed towards sales figures”.

In addition, several core grocery categories, particularly on-the-go food, bakery, and coffee sales showed notable growth rates.

He said the sales boost was also helped by rising demand for its own-brand products.

Such products grew by around 12% in the last 12 months as consumers opted for less expensive grocery items.

Adding to its record year, Centra said its deli and food-to-go sales rose 11% last year and that its bread and cake sales grew 7%.

Sales of its ready meals rose by 17%, with Centra’s own-brand product range increasing by 12% compared to the previous year, the retailer said.

Plans for further growth 

The retailer said it has set out what it sees as ambitious plans for further growth.

It plans to open 20 new stores in 2024, as part of a €27m expansion plan.

The group also plans to revamp 40 existing Centra stores.

The new openings will bring its total store count to more than 500, the company said.