One of Germany's largest discount food retailers is to open a chain of stores in the Republic. A rival German company is also understood to be looking at development opportunities here. The giant multiple, Lidl, has already commissioned Irish agents to find suitable outlets with floor areas between 10,000 and 15,000 sq ft. A second chain, Aldi, is also targeting Ireland because of the well-publicised buoyancy in the retail market here.

Earlier this month, The Irish Times carried a recruitment advertisement seeking a regional director for "a progressive retail organisation with over 3,000 stores in Europe . . . now entering the Irish market". The advertisement is understood to have been inserted by the parent company, Lidl & Schwarz, which has an annual turnover of more than £8 billion, most of it earned from 1,674 outlets in Germany. Dublin estate agent Colm Lundy and Pat Nash have been actively seeking more than 20 stand-alone sites for Lidl in Dublin and the main provincial towns. Lidl will be in direct competition with multiples like Iceland and more particularly Spar, which has been rapidly expanding its operation throughout Ireland. Spar has increased the number of its stores here from 250 in 1996 to 315 at present, a figure due to rise to 400 by the year 2000. The new stores in the group have come mainly from within the ranks of existing retailers, according to Checkout Ireland magazine.

The Aldi operation is twice as big as Lidl, with a turnover of around £18 billion worldwide in 1995/96. It has 3,125 outlets in Germany and specialises in convenience food at discount prices. Aidan O'Hogan of Hamilton Osborne King said that with monetary union on the way, it would be much easier for companies like Lidl and Aldi to trade in Ireland. They were already in the UK and the buoyant Irish economy made this country an attractive market for them.

The German multiples were in a segment of the market which had seen a lot of change in the last few years, as was evident by the growth of Spar, Mace and Londis, who were providing convenience shopping, albeit at a price. Mr O'Hogan said that Spar had got a very strong foothold in the Irish market over the last few years.

Meanwhile, UK multiple Iceland has failed to develop a large network of stores in Ireland, but it has a number of outlets in Dublin including Dun Laoghaire, Finglas and Ballyfermot.