Convenience store retailer Centra plans to open 20 new stores this year, creating 500 new jobs nationwide.
The openings are part of a €27m store expansion programme, which will also encompass the revamp of 40 existing Centra stores.
It saw “significant growth” in sales of its own-brand products last year as shoppers hunted for savings while consumer prices were rising, its managing director has said.
Sales at the chain jumped by around 6 per cent in 2023 to a record €2.1 billion, the Musgrave group-owned retailer said on Monday. Centra managing director Ian Allen said this was driven by three factors, including a near 7 per cent increase in its prices.
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However, Mr Allen said sales volumes also increased due to the opening of a number of new Centra stores in the year, bringing its network to 496 shops across the State, and the refurbishment and enlargement of other units within the chain.
There was also “significant growth” in sales of particular categories of goods including its own-brand range, sales of which jumped 12 per cent, as well as Frank & Honest coffee and ready meals.
While Centra saw gross inflation in its prices of around 7 per cent, “real net inflation will be significantly lower” due to a price-cutting campaign towards the end of 2023 and price promotions throughout the year.
Mr Allen said shoppers had altered their habits, mostly to cut down on costs but also for lifestyle reasons. “The big one is they are buying significantly more own-brand products,” he said.
“You’re also seeing a big increase in healthier products, whether that’s flavoured water, whether it’s dairy-free products or healthier snacks. There was growth of 50 per cent in some of those areas. We’re definitely seeing more plant-based products being consumed as well, about 25 per cent growth there.”
Mr Allen said the group grappled with an around 6.5 per cent increase in its costs base in the year, largely due to rising energy and labour prices. “We’re a very energy-intensive business with the need for refrigeration and air conditioning,” he said.
“But I suppose then you’re looking at Government policies, whereby probably about half – almost half – of the [increase in the] cost of doing business has been driven by Government policies, particularly the cost of labour. For example, the introduction of sick pay-days. Obviously, the minimum wage increase that’s come in from January 1st.”
He said the group was looking at the Government to “do more” for retailers struggling with elevated costs.
Mr Allen expects to surpass the 500 store mark this year as part of a €27 million programme of expansion.
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