A BRITISH-BASED discount retail chain which is to open the first of what it says will be 50 shops in the Republic next week has defended an exchange-rate policy which sees 99p become €1.50.
The retail chain 99p Stores opens its first outlet in Dublin’s Ilac Centre next week under the name “€uro 50 Stores”. However, based on yesterday’s exchange rates, 99p is just €1.12.
A spokesman for the shop said there were “so many variables” including higher overheads in the Republic and higher VAT rates which explained the price disparity.
€uro 50 Stores insisted, however, that with every product on its shelves, including some well-known brands of food and drink, selling for less than €1.50, it will undercut the existing €2 stores.
The company said it was offering a way for hard-pressed consumers to make savings on everyday items.
It said it would open 50 such stores across the State as part of an expansion programme which could create up to 1,500 jobs over four years .
“This is yet further proof that consumer spending patterns have changed forever,” said Gerry Loughran, the store director.
“In the current climate in Ireland, consumers are looking for value for money.
“When they visit our stores, they know that is exactly what they will get.”
The buying director of parent company 99p Stores, Faisal Lalani, said the new chain would be “committed to using Irish suppliers throughout our expansion programme”.
The 99p Store chain is just 10 years old.
The company’s turnover in the UK is forecast to exceed €350 million in 2011.
