Annual sales in the Spar network of convenience stores broke through the €1 billion barrier for the first time year as the group's franchisees took the benefit of the building boom to open shops in new apartment and housing schemes.
With Irish consumer spending rising faster than anywhere else in the EU, the owner of the Spar brand said yesterday that its franshisees will invest some €90 million this year in up to 40 new shops.
BWG Group, which itself is likely to come on the market next year, said the latest openings will create 500 jobs, bringing to 470 the number of outlets trading under the Spar, Spar Express and EuroSpar brands.
Spar outlets are traditional neighbourhood and city stores, Spar Express is for garage forecourts and EuroSpar is the group's convenience brand.
The average franchise investment of €2.25 million will be funded in the main by franchisees.
The plans to open new stores in Dublin and in regional locations such as Roscommon and Birr, Co Offaly, were made public yesterday as BWG Group said it had embarked on a €4 million pilot scheme to try out a new store format that includes in-store seating in three of its existing outlets.
The pilot stores in Merrion Row and Abbey Street, both in Dublin, and Castlebar, Co Mayo, will offer a "new food" range in partnership with café chain Insomnia, Canadian doughnut brand Tim Hortons and Sunshine Juices.
The sandwich offering has been expanded in partnership with Cuisine de France and Donnelly Fruit and Veg under a new brand called Spar Signature. In addition, BWG is also offering a broader ready-to-cook evening meal range.
BWG Group chief executive Leo Crawford said the average number of stores in the network last year was 415 and that sales rose to more than €1.1 billion from €960 million in 2004, when there was an average of 405 stores. The group finished 2005 with 430 stores and Mr Crawford said the level of sales was "ahead of target".
While a consolidated profit figure for network of stores is not available, the 14 per cent growth in sales is good for BWG because it is wholesaler to the franchisees in its network.
BWG's majority owner, Electra Partners, is likely to sell its 65 per cent interest in 2007, five years after it funded a management buy-out of the group in 2002.
