Dealz, the British retailer which sells the vast majority of its products at €1.49 across Ireland, aims to open as much as 70 new shops across Ireland.
Owned by Poundland, Dealz already has 41 Irish stores and owns four retail parks. On average they serve 300,000 customers a week in Ireland. The average basket contains €6.50 worth of goods (across the UK and Ireland) which would give Dealz an annual turnover of around €100m in Ireland. The company does not disclose financial results for Ireland.
However, turnover could be even higher than the aforementioned figure if the average basket price was higher on this side of the Irish Sea. Chief Executive Jim McCarthy suggested that the the business performs better in Ireland when he spoke of the “attractive financial returns” in the country. This comes despite the Euro’s weak performance against Sterling. Mr McCarthy also added that he felt that Dealz was still “under exploited” in Ireland. 70 new stores will certainly change that.
The target of 70 new stores in Ireland is a long-term ambition. However, across the next financial year 60 new stores will be opened across Ireland and the UK.
Dealz success in Ireland has also motivated the company to branch out to more new fields. Mr McCarthy said that the company’s success in Ireland has “demonstrated that we could generate attractive financial returns whilst rapidly establishing a new brand in a different geography”.
The discounter has recently entered the Spanish market. Seven new stores are now open in Spain in what the company is calling a trial period. If that proves successful then Irish holidaymakers might be seeing more and more of a familiar face during summer holidays abroad in sunny Spain in years to come.
Of course, before expanding every business needs to do the proper research. Here at Shelfwatch we can provide you with a free quote on any of our services so please don’t hesitate to get in touch via our contact page.