Local focus key to success

Retailing isn't rocket science, says Musgrave SuperValu-Centra chief executive Eoin McGettigan, but you have to be good at it…

Retailing isn't rocket science, says Musgrave SuperValu-Centra chief executive Eoin McGettigan, but you have to be good at it to succeed.

Supplying some 500 franchise stores throughout the State and in the North, the company is no lightweight, although its competitors in the £4.5 billion (€5.71 billion) grocery business are decidedly in the heavyweight corner.

Overall, Musgraves Supervalue and Centra franchise outlets account for 23 per cent of the grocery market in the State, a greater share than any other single retailer.

What makes the group different, says Mr McGettigan, is the local focus of its family-owned businesses which operate the stores on a franchise basis.

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Musgrave Supervalu-Centra is the retail franchise division of the privately-owned Musgrave group, which also includes a cash and carry operation and a Spanish distribution business.

The group is growing fast. Turnover last year was £1.2 billion, up 19.5 per cent on 1997 and pre-tax profits were £23.7 million.

Overall, the company employs more than 1,000 workers directly and a further 11,600 are employed by franchisees.

Mr McGettigan puts the company's success in this year's Irish Times PA Management Award down to its management policies. "We're very strong on empowerment and autonomy, very flexible in decision-making."

Musgraves has developed a new centralised chill, fresh and frozen distribution division to supply its stores. It is also at the forefront in developing a new industrial relations structure through a partnership approach with employees.

It is also expanding rapidly. Under a deal reached earlier this year, eight supermarkets operated by the department store chain Roches Stores now trade under the SuperValu at Roches Stores brand.

A priority is to develop the retail business in the North, where SuperValu has taken some 10 per cent of the grocery market in three years.

"We've 34 SuperValus in the North - our hope is to get that up to 50," says Mr McGettigan and to 100 in four to five years. After that, the focus is Britain.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times