Supervalu sees sales rise 10% to €2.2bn and plans eight new stores

SALES AT the Musgrave-owned supermarket franchise, Supervalu, grew 10 per cent last year to €2.2 billion, the company said yesterday.

Donal Horgan, Supervalu's managing director, told delegates at its annual conference in Killarney, Co Kerry, that sales at its convenience stores grew 10 per to a record €2.2 billion.

Part of the growth was attributable to the fact that the group opened nine new stores during 2007, but Mr Horgan said that the like-for-like increase was 8 per cent.

In a statement, the group said that it is planning to spend €25 million on opening eight new stores this year, and another €39 million on revamping and extending 41 existing shops.

The move will create 700 new jobs, bringing to 13,000 the total employed in the chain.

Supervalu said that its retail franchisees invested a total of €75.4 million in their businesses last year. They spent €17.6 million on opening nine new stores and a further €57.8 million on refitting and extending 36 existing outlets.

Mr Horgan told delegates that the group is confident about the year ahead.

"Though operating in a more uncertain economic climate, we are confident that as a result of the focus on developing the brand and our offer to consumers, Supervalu is positioned to compete and to continue to develop its store network in 2008," he said.

"We have responded to consumer demands for fresh quality products, value for money and convenience and have developed our offer around these demands."

Along with Centra, Supervalu is one of the two Irish retail brands operated by Cork cash and carry and grocery business, Musgrave Group.

The two chains have a total of 767 shops around Ireland. Musgrave owns Bugdens and Londis in Britain, which are also franchises.

It also has a retail and cash and carry brand in Spain.