ADM Londis, the Irish convenience chain which last year rejected a takeover offer from rival BWG, is aiming to have 400 stores across Ireland by 2007, according to joint chief executive Stephen O’Riordan.
He told the symbol group’s AGM in Dublin this week that a stand-alone growth strategy was adopted in the aftermath of the bid and “we have a great future ahead of us”. Turnover was up 5% to e309m and 42 new stores had opened last year, bringing the total to 330 and “increasing our market presence significantly”.
The former co-operative, which converted to private plc status last January, is also examining its distribution network with a view to further expansion. O’Riordan declined to detail what this would involve, but sources suggested the company might move into direct chilled and frozen distribution, a part of the business it currently outsources. The Londis chief stressed that innovation and added value were key elements of the group’s long-term strategy in a “highly competitive, low-margin sector”. In this context, he appealed to government not to scrap the groceries order that bans below-cost selling. If it were removed, he warned, local community retailers, including his own company, would be “put under enormous pressure”.
There was no doubt, he claimed, that any changes to the ban would threaten the independent retail trade. Both consumers and small businesses would suffer, “with the larger supermarkets adopting predatory pricing techniques, drawing in customers with some cut-price items, but then charging more for others”.
He added: “We urge the government to support our industry and the 6,000 people employed through our group by maintaining this legislation.”
He told the symbol group’s AGM in Dublin this week that a stand-alone growth strategy was adopted in the aftermath of the bid and “we have a great future ahead of us”. Turnover was up 5% to e309m and 42 new stores had opened last year, bringing the total to 330 and “increasing our market presence significantly”.
The former co-operative, which converted to private plc status last January, is also examining its distribution network with a view to further expansion. O’Riordan declined to detail what this would involve, but sources suggested the company might move into direct chilled and frozen distribution, a part of the business it currently outsources. The Londis chief stressed that innovation and added value were key elements of the group’s long-term strategy in a “highly competitive, low-margin sector”. In this context, he appealed to government not to scrap the groceries order that bans below-cost selling. If it were removed, he warned, local community retailers, including his own company, would be “put under enormous pressure”.
There was no doubt, he claimed, that any changes to the ban would threaten the independent retail trade. Both consumers and small businesses would suffer, “with the larger supermarkets adopting predatory pricing techniques, drawing in customers with some cut-price items, but then charging more for others”.
He added: “We urge the government to support our industry and the 6,000 people employed through our group by maintaining this legislation.”
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