Centra, the convenience store franchise owned by the Musgrave group, reported an 18 per cent increase in sales to €750 million last year. The rise was attributed to rapid growth in the convenience foods sector, quickly emerging as the most dynamic in the retail industry.

Centra used the publication of its annual results yesterday to lay down a challenge to the larger multiples. The company said although it planned to open up to 30 new outlets this year, it would focus primarily on expanding the size and range of services at existing stores in a bid to allow the brand compete more aggressively with supermarkets.

With 7 per cent market share, Centra is now the fifth-largest grocery player and makes no secret of its ambition to edge out other smaller convenience chains while simultaneously wooing customers at the expense of the multiples. Retail trends have undergone profound change over recent years and, with many branches posting €80,000 turnover a week, Centra believes it is uniquely positioned to capitalise on the shift away from traditional shopping habits.

"The once-a-week major household shop is being replaced with multiple daily visits to smaller stores and this food-to-go market is accounting for a larger proportion of national food sales," said managing director, Mr Michael Nason.

Year on year, Centra revenues climbed 11 per cent in 2002, following 21 per cent growth over the previous 12 months. Some €80 million was invested in technology and capital upgrades across 326 branches last year.