New Superquinn owners aim to expand

Superquinn has been taken over by a consortium of Irish investors in a €450m deal.

Under the deal, 46-year-old Dubliner Simon Burke, an Irish man who headed Hamley's toy store in Britain, will become the new executive chairman of Superquinn. The group will retain its name and management team.

Senator Quinn said it was his strong wish that Superquinn remained independent of multinationals and was controlled in Ireland.

Mr Burke told RTE radio the investors involved, including himself, were all Irish and came from a range of backgrounds, including retail, finance and property.

Mr Burke said that as there were people with good connections in the property world, the group could now gain access to sites that might previously have been unavailable. He said he wanted to build on the Superquinn brand, which was about quality fresh food, and develop its range to offer products other supermarkets did not offer.

Asked about competition from Aldi and Lidl, Mr Burke said Superquinn was different, and was based on the idea that its customers were discerning and would pay for quality and freshness.

The Irish supermarket sector has become increasingly competitive in recent years. The expansion of Aldi and Lidl combined with the strong position of Tesco has put more pressure on Irish owned retailers.

In recent years Superquinn has been outbid by other supermarkets companies in the battle to purchase prime retail sites. Superquinn's new owners hope to use their financial muscle to expand the company.

The group has 19 supermarkets and one small convenience store. It plans to increase its presence in the Irish supermarket sector where it currently has a market share of 8% compared with Tesco's 25%.

* The  Fine Gael Enterprise, Trade & Employment spokesman, Phil Hogan, has invited the new owners of Superquinn to appear before the Oireachtas Committee on Enterprise and Small Business to determine whether  consumer interests will be protected in the company's future plans.