Independent supermarket set to expand thriving business

Food retailing in Ireland is very competitive and dominated by the multiples and symbol groups. However, there are some thriving independent exceptions and Nolan's of Clontarf on Dublin's northside is one of them.

Established by Paddy Nolan in 1958, Nolan's is something of a local institution with fiercely loyal customers who know they could shop for less elsewhere but generally don't.

Richard Nolan took over the day-to-day running of the business from his father in 1985. He acknowledges the challenges it faces but is bullish about the future and prepared to put his money behind it.

The company recently got the go ahead for a multimillion euro building project that will add 20,000 sq ft of commercial space and effectively double the current footprint.

“The supermarket needed an upgrade and we decided to use the opportunity to create a retail experience with a difference,” Nolan says.

“What we’re aiming for is a bit of theatre and a heavy emphasis on fresh food, along the lines of the English Market in Cork.”

Nolan’s has about 3,000 regular weekly customers, more than 23,000 stock items with about 550 suppliers all billing directly. In addition to the supermarket, the complex also houses a coffee shop, newsagent, franchised hairdressing salon and dry cleaners and a hardware store and garden centre run by Richard’s younger brother, Paul.

“We are very good at what we do and the business is profitable but turnover has been static for the last few years,” he says.

“In part, that’s down to no new housing in the area but also to increased competition and the recession. We may be in an affluent area but we’re not bullet proof.

“We’re working harder and longer than ever and the challenge is to drive growth from within our existing customer base within workable parameters. For example, we can’t offer online shopping because, economically, it wouldn’t make sense, but it was viable to introduce our own loyalty card.”

Prime site

There were many who expected Nolan’s to sell its prime site during the property boom but it never happened.

“On paper it might have made sense but what would we have done?” Nolan says. “We’re too young to retire. It’s also a matter of pride to keep things going as the second generation. Nolan’s is more than a supermarket. It’s a buzzing community hub.”

Nolan started working in the business as a teenager and says his father was a tough taskmaster and a hard act to follow.

“He was in the store almost every day until he died at the age of 88. He was a very charismatic front of house person while my mother, Una, was the razor-sharp power behind the throne and a formidable businesswoman in her own right.

“My dad was great with people and, when we did a major customer survey in 2014 to help plot our future, friendliness was seen as one of our biggest assets. Also topping the list were the quality of our fresh food and our wide selection of Irish and artisan products.”

Nolan’s employs 125 people between full and part-time staff and Nolan says that number has remained consistent even in the downturn.

“When others closed departments like butchery and bakery, we kept ours open.

“We know we are not the cheapest place to shop so we have to give people other reasons to keep coming here.

“Behind the scenes, we also have a professional management team who monitor costs pro-actively, buy well and try to ensure we’re as operationally lean as possible. We would not be where we are without the calibre of the staff we have at every level.”

Not being affiliated to a buying group has worked to the company’s advantage. “We can make instant decisions about pricing.

“Customer habits have undoubtedly changed. Fewer people do their weekly shop in one supermarket. They shop in different places but come back to us for quality beef, lamb and pork products for example.

Coeliac and diabetic foods

“They also return because we have a big range of coeliac and diabetic foods and lot of products that appeal to the ‘foodie’ shopper.”

Nolan says the shift to central warehousing by the retail food industry here a number of years ago marked a seismic shift in how Irish grocery retailing was organised and also in how Nolan’s did its business.

“We felt we were not getting a fair crack of the whip any more and decided to go after the best possible purchasing deals independently,” he says. “We subsequently became part of a UK-based wholesale co-op and our keenly priced Heritage range is a result of that relationship.”

Nolan’s has been approached many times by people asking for a replica store in other locations.

“We feel Nolan’s mark one is pretty good and that trying to do Nolan’s mark 2 would increase our problems without a commensurate rise in turnover,” Nolan says.