Centra Reveals Store Expansion Programme

 Namnews, 30th January 2023

Centra, the convenience chain in Ireland owned by Musgrave, has announced a €23m investment in its store expansion programme.

The investment will see the opening of 18 new stores and the revamp of 35 existing sites during 2023. Centra’s expansion is in addition to the €25m spent last year, which included the refresh of 33 outlets across its estate.

The retailer’s sales in 2022 hit €1.98bn for the first time from 167 million consumer transactions. The company noted that Centra’s brand has demonstrated strong resilience in the face of the ever-increasing economic challenges, which has resulted in a 17% increase in sales compared to pre-pandemic levels in 2019.

The lifting of Covid-19 restrictions last year and workers returning to offices in urban locations helped boost demand for Centra’s convenience offering with its on-the-go breakfast and lunch options increasing sales by 13% on 2021. Lunchtime deli sales alone increased by almost 11% (10.9%) compared to 2021 as the need for convenient lunches topped the agenda for consumers. Frank and Honest coffee sales were also up 7%, whilst its bakery sales climbed 8%.

Centra noted that the cost-of-living crisis led to changes in shopping trends during the latter part of 2022, with people more focused on dining in and saving money. As a result, Centra’s Freshly Prepared range enjoyed 10% growth year-on-year, whilst demand for its own-label range increased significantly, with sales growing by 10.3%.

Centra Managing Director Ian Allen commented: “At Centra, we strive to deliver the best value and exceptional quality Irish products to customers. Our in-depth understanding of the role of convenience in shopping decisions saw us adapt to the schedules of our time-poor shopper, meeting their needs at each hour of the day. Today’s customers are shopping little and often and Centra is the perfect solution to meet this trend.”

He added: “We are also cognisant that these are challenging times, with increased living costs and rising inflation. We’re continuously adapting to meet our customers’ needs and I would like to thank them for their loyalty, as well as our retail partners in every community across Ireland for the role they have played in delivering this relentless value and service.”

Centra stated that it was continuing its focus on innovation and enhancing its offering to consumers.

In the first quarter of 2023, Centra expects to expand its trial same-day delivery partnership with Just Eat & Deliveroo to six further locations. The group noted that customers had shown “significant interest” in the delivery service, which was rolled out across 34 locations in 2022.

The roll-out of Moo’d ice-cream counters looks set to continue after seeking strong sales growth last year. Meanwhile, Centra’s partnership with The Happy Pear led to 21% growth in sales recorded in 2022, with soups, meals and cereals all proving popular amongst shoppers.

The group also stressed that sustainability will continue to be a leading priority for Centra, with 96% of its own-label product packaging now recyclable, reusable or compostable. Having launched the Musgrave Sustainability Fund in 2022 to the tune of €25m, Centra stores across Ireland are also undergoing sustainable upgrades as part of the company’s commitment to achieve net zero carbon by 2040.