Sainsbury has refused to comment on a report in the British trade magazine, Super Marketing, that it is close to signing a deal with Roches Stores, the family-owned grocery and drapery multiple.

A spokeswoman said she was "unaware" of any discussions taking place between the company and Roches Stores, although industry sources say there have been discussions between the companies.

The magazine said Sainsburys "is thought to be close to agreeing a deal whereby it would buy the food side of the company's six stores, including outlets in Cork, Dublin, Galway and Waterford".

There has been continued speculation in the retail trade since April that Sainsbury would gain a bridghead in the Irish market through the acquisition of part or all of Roches grocery business.

Sainsbury has established in Northern Ireland but Tesco has stolen a march on any plans it may have for expanding into the Republic after acquiring the Quinnsworth/ Crazy Prices chain.

Roches Stores directors have followed the traditional family line of refusing to comment to the media on their business.

Within the industry, sources do not believe that Sainsbury would be interested in Roches drapery outlets.

Roches has nine stores in the Republic - one each in Dublin's Henry Street and St Stephen's Green Shopping Centre, and three in the capital's suburbs at Blanchardstown Town Centre, The Square in Tallaght and in Blackrock.

It also has two outlets in Cork, in Patrick Street and the Wilton Shopping Centre.

It is also established in O'Connell Street, Limerick, off Eyre Square in Galway and at City Square in Waterford.