Dairygold to create 600 jobs in DIY chain move
By the end of 2006 the co-op's new 4Home brand will extend nationwide to include 20 franchise operations and 10 company-owned stores.
The chain, which was announced yesterday, aims to achieve a turnover of €100m, putting it in the top three of the DIY-Homecare market.
With almost €1 billion a year in total turnover, the co-op has a restructuring programme which has already resulted in a number of businesses being sold or outsourced and more than 825 jobs being lost.
Dairygold's first 4Home store will open in Mallow, Co Cork, at the end of July. Three further co-op superstores at Raheen in Limerick, Carrigaline, Co Cork, and Annacotty in Limerick will begin operations under the 4Home brand in September. The locations of the remaining stores have yet to be announced.
Dairygold's existing DIY and homeware business accounts for a €50 million a year turnover, giving it a 10% share of the market, estimated to be worth €500m and growing by 15% a year.
The 4Home chain will be established through the conversion and re-branding of 10 Dairygold Superstores under the new brand.
4Home managing director Simon Healy said they had spent the past six months working on the concept.
"The franchising model is tried and tested in the retail sector. 4Home will apply it and create the first Irish fully fledged DIY-Homeware offering in this sector of the market," he said. "For many years, smaller, independent hardware and DIY retailers have struggled to compete against the major chains. 4Home will offer them the opportunity to be able to compete on a level playing pitch in terms of purchasing and marketing power.
"We have already received interest from independent homeware retailers and we are confident that the 4Home brand will strongly appeal to prospective franchisees countrywide," he said.
