IRELAND: SuperValu outlines 2014 expansion plans
Irish supermarket operator SuperValu grew its share of grocery sales in the country during 2013 and plans to continue the trend this year through a programme of space expansion and store improvements.
The chain, part of the Musgrave Group, booked a 1% increase in sales during the year to end-December, excluding the contribution from 24 outlets acquired from rival Superquinn during the period. Sales increased to EUR2.1bn (US$2.8bn), the company said.
SuperValu grew its market share in 2013, finishing the year with a 20.1% share, Musgrave stressed. Since the name change of the 24 Superquinn stores earlier this month, SuperValu now has a combined market share of 25.2% and is the largest Irish grocery brand in the country, Musgrave added.
"SuperValu's success can be attributed to putting the customer first, investing in quality and staying true to our roots in communities across Ireland," Martin Kelleher, MD of SuperValu, said. "We have delivered value to consumers by investing in price reductions and the development of our own-brand range. Our own-brand range has proven highly popular with customers, with sales increasing by 9% last year."
Supervalu plans to expand further in 2014, when it will invest EUR7m in opening three new stores. A further EUR12m will be invested in the expansion and refurbishment of 45 Supervalu stores and EUR20m will be spend on the former Superquinn network.
SUPERVALU RECORDS SALES OF €2.1 BILLION IN 2013 AND PLANS TO CREATE 210 JOBS WITH THREE NEW STORES PLANNED IN THE NEXT YEAR
SuperValu today announced that it recorded retail sales of €2.1 billion in 2013*, a 1% increase on the previous year's figures. SuperValu's performance and growth in market share is attributed to the grocery retailer's unique combination of outstanding fresh food, Irish sourcing, value and market leading customer service.
SuperValu grew its market share in 2013, finishing the year with a 20.1% share of the market. This growth has continued into 2014 with recent Kantar figures showing SuperValu continuing to increase share. Since the name change of the 24 Superquinn stores earlier this month, SuperValu now has a combined market share of 25.2% and is the largest Irish grocery brand in the country. This builds on the momentum behind the SuperValu brand which has grown 30% over the past ten years.
In Dublin alone, SuperValu's market share has increased to almost 22% where it now has 44 stores, positioning the company well in terms of the on-going population growth that will continue on the east coast over the coming years. The expanded SuperValu network consists of 223 stores, employing 14,500 employees and handling 2.6 million transactions a week.
SuperValu plans to open three new stores in 2014 as part of a €7 million investment by its independent retail partners, which will result in the creation of 210 jobs. A further €12 million will also be invested in the expansion and refurbishment of 45 stores this year. This comes on top of the €20 million in-store investment programme in the former Superquinn network, which was announced earlier this year.
Commenting at the SuperValu national conference in Killarney today, Martin Kelleher, Managing Director of SuperValu, said: "SuperValu's success can be attributed to putting the customer first, investing in quality and staying true to our roots in communities across Ireland. Customers are voting with their feet as evidenced by the latest Kantar research which shows that 30,000 new customers shopped with SuperValu over the past twelve weeks."
"We have delivered value to consumers by investing in price reductions and the development of our Own Brand range. Our Own Brand range has proven highly popular with customers, with sales increasing by 9% last year and it has accumulated over 40 Great Taste and Blas Na hEireann Awards."
"SuperValu continues to source locally wherever possible and since the Superquinn name change now purchases almost €2 billion worth of goods from Irish suppliers, which helps to sustain 30,000 jobs in the economy. We stock 100% fresh Irish meat - beef, pork, chicken and lamb - which is born, bred and reared in Ireland. As part of our on-going investment in quality, SuperValu was the first retailer in Ireland to adopt the National DNA Traceback Programme for Bacon and Hurley's SuperValu in Midleton was the first store in the country to secure the Bord Bia Quality Assured Butcher Counter."
"Our retailers paid out €220 million in wages and contributed millions more to communities through spending with local firms and charitable contributions. All of this keeps more money in the local community, helping to make vibrant places for all of us to live in and shop"
"With one in four shoppers now shopping in a SuperValu outlet we are determined to build on the quality and value proposition that shoppers have come to expect from us and our retail partners. Looking forward to 2014 we will continue to focus on offering a unique combination of fantastic quality, excellent customer service and an innovative shopping experience."
* - SuperValu's 2013 retail sales total does not include the retail sales of the 24 former Superquinn stores.
Original source: Musgrave Group
Musgrave Group Plc - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offer...
Canadean's "Musgrave Group Plc: Retailing - Company Profile & SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, key f...
Musgrave Ltd enjoyed strong development towards the end of the review period with the rebranding and amalgamation of the Superquinn brand under the Supervalu chain in 2014. The company is expected to ...
The fortunes of Ireland’s packaged food industry continued to improve during 2014 due to increasing consumer confidence and higher consumer spending. The review period saw Ireland exit the EU/IMF bail...
- Analysis: Is Heinz, Kraft merger "a growth story"?
- McDonald's antibiotics move may be seminal moment
- M&A Watch: Who could be on 3G Capital's radar?
- Viewpoint: Faber-led Danone gets realistic
- Green Giant talk underlines pressure at Gen Mills
- UPDATE: Heinz, Kraft strike merger agreement
- Kraft "in buyout talks" with Heinz owner 3G
- Fatal explosion at French desserts firm Senagral
- Infographic: Heinz, Kraft unveil combined business
- Buffett: Kraft Heinz to withstand health focus