It is arguable that the £630 million takeover of Quinnsworth by the British shopping giant, Tesco, represents a very strong vote of confidence in the Irish economy and in the likely continuance of our current economic good health. Over the past decade, the Tesco group has with no little skill and flair - successfully eclipsed all of its main competitors in the highly competitive British market a move into a booming Irish market must have appeared as a logical next step.
Tesco's impending arrival will, no doubt, be viewed with some apprehension by Quinnsworth's 7,000 employees in the Republic; by the company's Irish suppliers and by its main competitors in the Irish retail sector. There is a natural concern that a large, British focussed multinational like Tesco will have insufficient concern for Irish sensitivities. There is apprehension that the company will source many of its food products outside of Ireland and there are worries that its arrival will drive down pay rates and transplant a British hire and fire mentality into this economy.
It is difficult not to feel sympathy with suppliers who suddenly face an uncertain future. Quinnsworth has been widely praised within the industry for its support for Irish food companies. There is no guarantee that Tesco will renew this business, especially when own brand products account for some 50 per cent of total sales. The temptation for Tesco to import these non branded products from the UK - instead of seeking Irish suppliers - may prove difficult to resist. There will also be concern that Tesco's huge economies of scale will make it difficult for Irish suppliers to compete on even terms.
But it may be that some of these fears are overstated. The Irish food industry is not an amateur business. It has already secured a healthy slice of the British retail market - including some £500 million worth of business with Tesco. It should not be unduly concerned about protecting its market in its own backyard. In terms of industrial relations, Tesco also has a good reputation, certainly better than certain indigenous enterprises in the retail sector. It may be unfair to decry Tesco or to make too many assumptions about it, simply because it is so strongly associated in the public mind with the British high street market. Quinnsworth, indeed, was controlled by Associated British Foods.
For the consumer, the arrival of Tesco should represent good news with still more intense competition and, perhaps, even better service. Tesco's main competitors like Dunnes, Superquinn and the various symbol groups, have shown that they are no slouches when it comes to protecting their market share. They have already demonstrated a readiness to adapt to meet the changing expectations of their customers.
Many, meanwhile, will lament the passing of another well known name in Irish retailing and the fact that our main shopping streets have come to resemble so closely the standard British high street. Perhaps this is the price of economic progress and open markets: but there is, nonetheless, an unsettling uniformity about the face of modern retailing.