4Home store part of Dairygold expansion
The 25,000 sq ft branch at Cork Road, Killarney, with Paudie Sheehan as developer, will create 50 jobs, the co-op said last night.
Dairygold announced last year that it plans to open at least ten new stores in 2005, including franchise outlets, leading to the creation of up to 600 jobs.
The co-op’s former superstores at Raheen in Limerick and Carrigaline in Co Cork have been re-branded and redeveloped as 4Home stores and a 24,000 sq ft store has also opened in Mallow. 4Home strategy is to secure a larger slice of the country’s DIY, builders’ providers and homeware sector, estimated to be worth up to 3bn turnover annually. The group aims to achieve a national presence with 30 stores, including franchise outlets and to double turnover to 100 million by June 2007.
It plans to establish itself as one of the top three operators in the rapidly expanding and high spending sector.
Managing director Simon Healy told a regional meeting of Dairygold shareholders in Limerick last night: “We will build a strong and profitable 4Home business, which will be a major contributor to the prosperity of Dairygold shareholders in the years ahead.”
He said the sector is served by a highly fragmented structure with many single operators and only a small number of multi-located businesses.
There is no centralised buying function or supply chain infrastructure servicing the independent operators of whom there are thousands around the country.
Mr Healy said the growth of the market from 1994 to 2003 has been in the order of 11% per annum. The potential has attracted international operators like Homebase, B&Q, and more recently IKEA.
