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 Musgraves Retail Profile 

1. Contact Details

Head Office
Musgrave Group   
Airport Road
Ballycurreen
Co Cork
Tel:  (021) 452 2100
Fax:  (021) 452 2244
Web:  www.musgrave.ie
Email: firstname.lastname@musgrave.ie 

Musgrave Retail Partners Ireland  
Tramore Road
Co Cork
Tel:  (021) 480 3000
Fax:  (021) 431 3621

Musgrave Wholesale Partners
Head Office
St Margaret’s Road
Ballymun
Dublin 11     
Tel:  (01) 883 5333
Fax:  (01) 883 5301
Email: firstname.lastname@musgrave.ie

Musgrave Reatil Brands:
Supervalu ROI / NI   www.supervalu.ie
Centra ROI / NI    http://www.centra.ie/
Daybreak     http://www.daybreak.eu/
Mace (NI)    http://maceni.com/

Musgrave Retail Brands UK:
Budgens (UK)    http://www.budgens.co.uk/
Londis (UK)    http://www.londis.co.uk/

Musgraves Retail Brands Spain:
Dialsur, Dialprix, Dicost, SuperValu

Musgraves Wholsale Partners  Cash &  Carry / Food Service:
Musgraves Food Services   http://www.musgravefoodservices.ie/

Musgraves Wholesale Partners employs 1,144 people across 13 depots in the Republic and in Northern Ireland. 

The Galway MRPI depot is due to close, spare capacity at the Kilcock DC will now service the 46 Centra and 29 Supervalu stores in the West of Ireland.

 1. Musgrave Group Overview

Musgrave is partner to entrepreneurial food retailers and foodservice professionals in Ireland, the UK and Spain.  The company was founded in Cork in 1876 by brothers Thomas and Stuart Musgrave, and is now one of Ireland’s largest and most successful companies.  Musgrave partner with nine retail brands to bring consumers a retail food offer that strives to be different and better, the Supervalu and Centra brands are the retail brands most established in the ROI.

In addition to partnering entrepreneurial food retailers they also operate a network of cash & carry outlets across the island of Ireland and Spain that have been specifically developed to meet the changing needs of the independent food retailer and foodservice professional.

Musgrave group made €4.4billion in Sales in 2010 a 3% drop on 2009. Its €72m profit before tax marked an increase of 3%. The company cleared its start of year debt of €59m to close the year with net cash of €21m.

In Ireland, Spain and the UK, together with their retail partners, the Musgrave group employ over 56,000 people. In Ireland, together with their retail partners, the Musgrave group employ over 35,000 people.

A core part of Musgraves strategy is a commitments to investing in local communities and local SME’s. Musgraves partner with more than 3,300 local retailers across Ireland the UK and Spain.

In the UK 200 retailers joined the Londis brand in 2010, bringing the total number of stores to 1,784. In Northern Ireland the Mace brand was relaunched with more than 50 re-branded stores and 20 new store openings.

In 2010 Musgrave closed Galway DC –Spare capacity at Kilcock DC will now service the West of Ireland Retailers.

In the Republic of Ireland, SuperValu and Centra delivered increased sales, primarily from new stores.

In September 2007 they completed the acquisition of Northern Ireland business J&J Haslett.  This acquisition gives Musgrave the opportunity to partner with 200 Mace and 70 XL Stop & Shop retailers and brings to 3,400 the number of independent food retail stores they now support in Ireland, the UK and Spain.

In 2002, they introduced their unique way of working with independent retailers to Great Britain, with the acquisition of the Budgens convenience store network and the purchase of Londis in 2004.  All Budgens stores are now in the hands of independent retailers, 12 months ahead of schedule. 

Musgrave Wholesale
Musgrave Whole Sale has invested €1.5 million in relaunching its 110,000 sq ft cash and carry in Robinhood Industrial Estate, Clondalkin, Co Dublin. The refurbishment will bring the total revamp investment to over €10 million, and follows the upgrading of sites such as Robinhood in Dublin. Musgrave opened its Galway MarketPlace cash and carry in 2010, which is the latest site to be upgraded.  The MarketPlace concept includes a dedicated Far East range for Asian restaurants, over 500 PL lines and an exclusive wine range, while Musgrave has also significantly upped its range of chill and frozen lines.

Musgraves Wholesale reported a strong take up of new PL range: The new ‘Good value range’ was originally designed for the group’s UK Budgens and Londis division has now been rolled out in ROI. There are 18 lines in the Good value range. The cash and carry has been rebranded as Musgrave Marketplace, with an enhanced shopper environment and wider range of stock, particularly in its chilled and frozen categories. Three stores had previously converted to Musgrave Marketplace, in Ballymun, Cork and Belfast, and the group aims to see eight of its cash and carry branches converted to the Musgrave Marketplace banner by 2011. 

 2. Supervalu (192 Stores)

  • Third Largest retailer.  Market Share of 19.8% (Kantar Data June 2011)
  • Recorder sales of €2.1bn in 2010. Av sales per store Supervalue Store are €11m.
  • SuperValu has buying power in excess of €4.9 billion.
  • 75% of Supervalu purchases are Irish contributing €2.6bn to theIrish economy. All SuperValu branded beef, lamb, chicken, pork and bacon is 100% Irish, while 65% of all their fruit and veg is also Irish adding up to €1.2 billion worth of fresh produce every year. 75% of Dairy products are Irish worth  €225m.
  • SuperValu has over 1700 products in their Own Brand range and 536 are produced in Ireland.
  • SuperValu’s stores are small supermarket formats and are typically around 10,000 sq ft, with Musgrave providing the infrastructural, logistical, marketing and sourcing support. (IGD)
  • 1m Households shopping in Supervalu almost three times every week. (61.3% penetration)
  • For every €100 Supervalu shoppers spend on grocery €35 is spent within Supervalu.
  • Strengths: Fresh & Chilled.
  • Private Label value share within Supervalu accounts for 26% of total sales. (Growth of 8.6% since the start of 2011)
  • Shopper profile for Supervalu tends to be older households with older families more inclined to be rural based.
  • SuperValu largest retail advertiser in Ireland: It is revealed that SuperValu spent €21.3m on press and TV ads in 2009, followed by Harvey Norman which spent €20.3m.  (Shelflife 2010)
  • Supervalu are trialing online retailing in two of its stores in Cork. SuperValu Online Shopping is now operational through Ryan’s SuperValu in Grange and Hurley’s in Midleton.
    The pilot will shortly be rolled-out in SuperValu Carrigaline (Collins) and SuperValu Ballincollig, owned by former MSVC executive Sean Quish. While SuperValu has not committed to a timeframe for a full national roll-out, Marketing Director Ray Kelly said that the pilot would allow it to fine-tune the proposition before making the decision on whether to launch it nationally. (Checkout April 2011)
  • Supervalu’s Real Rewards loyalty card attracted 670,000 users; 55% of all sales now go through the loyalty card. The loyalty card is  part of a group-wide investment in customer insights, and when combined with upgraded EPOS systems across the retail estate, meant that Musgrave and its retailers were now in a position to ‘understand the customer a lot better’. Real Rewards was rolled out to the full SuperValu network last year after a trial period proved successful. Under the programme, which allocates one point for each euro.
  • Two news store openings are planned for 2011 (Mountmellick & Manorhamilton)
  • Investment in price reductions will be €26m in 2011, achieved through meal deals and promotions like the half price campaign.

 

3. Key Market Strategy - Supervalu

Supervalu Focus on three key areas:

  • Fresh – product excellence (quality, provenance and heritage)
  • Service – product counters, service culture throughout business
  • Local community – greater involvement in local communities (IGD ’09)

 

Local Sourcing Strategy 2011 (Supervalu & Centra)

Aim of the Local sourcing strategy is to facilitate SV stores to identify good quality local suppliers.

Objective is to have the key local suppliers listed with their local SuperValu (SV) / Centra stores.

Space has been dedicated on the planograms for Local Suppliers.

Musgrave’s is looking for local suppliers who have something new / different to add to their range, suppliers who can bring something different to their local area.

Local suppliers looking to get a local listing with Musgrave’s should identity a gap in their range and approach the local store managers.

Local Supplier Criteria: Identified a gap, new innovative product offering, company background (tell the story), quality standards in place (i.e. HACCP), distribution capability, PR/ in-store tasting support is required if they get a listing.

Local suppliers are generally given a trial period of 4-6 weeks 

Local suppliers need to be supplying 10 stores to be considered for regional / national listings.

Own label Strategy 2011 (Supervalu & Centra)
Musgraves are looking to have a standard own brand offering across its SV & Centra stores
in both their Irish and UK stores. This provides an opportunity for Irish suppliers to achieve significant volumes.

Musgrave’s are looking to broaden their own label range offering and also identify new
innovative own brand product offerings.

By March 2011 600-800 Own brand products will be tested and benchmarked against
brands and other own brand offerings.

Musgrave’s use the e-auction system to source OB suppliers.

Own Brand Criteria: Good product quality, volume capability, point of difference.

Current areas of opportunity are in the chill categories & ready meal categories.

Looking for own brand products for their Good (Nice Price), Better (Supervalu), Best
(Supreme) ranges for both SV & Centra stores.

Centra

Centra’s strategy is focused on:

  • Providing a convenient offer of fresh foods and groceries
  • Increasing focus on food-to-go and counter services
  • Tailoring locally owned stores to meet local needs

Centra continued to out perform the market, -2% versus the rest of the convenience market at -6.5%, growing at twice the rate of its nearest competitor and serving over 3.5m consumers a week. (Retail  News March 2011)

Avergae Centra Store Sales  of €3m per annum

Centra own brand range is the new sponsor of Emmerdale on TV3 and, its the first own brand range to sponsor a programme on Irish television.

790 products available across all household categories.

Centra will add 17 new stores and over 500 new jobs to its network this year in €23m investment. (Shelflife 2011)

Centra recorded €1.4 billion in sales in 2010 and said it continued to outperform the market as its sales slowed by 2% compared to an average of 6.5% for its competitors. (Shelflife 2011)

Daybreak
Musgrave has reported significant growth in its Daybreak convenience brand, with the expansion of the brand confirming the continued growth of retail formats with lower entry and fit-out costs. According to Musgrave Wholesale Partners (MWP), which operates the Daybreak fascia, 27 new retailers joined the group in 2010, bringing total store numbers to 155. Over 25% of these openings were in Dublin, the wholesaler said, with plans to recruit 30 new stores this year.  15 of these projected openings are already at an 'advanced stage', MWP said. With the recession having a major impact on most convenience formats, the most dominant trend in 2009 and 2010 has been slower growth for the high-end c-store brands like Spar and Centra, and increased store openings of the likes of XL and Daybreak.
These retail brands generally require lower fit-out costs and have less stringent purchasing loyalty requirements than the more 'full-service' symbol brands.

 4. Format & Number of Outlets

ROI Number of outlets: 862 outlets

SuperValu: Independently owned stores differentiate through strength in fresh food, a consistent keen value offer, relationships with local suppliers and the expertise and customer service of our retail partners

Centra: The number one independent convenience retail chain in Ireland, delivering fresh food, food-to-go and innovative services to busy consumers

Daybreak: Owned and run by independent retailers. 27 new Day Break stores were added in 2010. Another 30 Daybreak stores are targeted for 2011.

Mace / XL Stop & Shop: Mace stores have a strong market presence with 200 outlets throughout Northern Ireland. 20 new stores were added to the Mace fascia in 2010.

Musgrave Cash & Carry: provide delivered retail and cash & carry services to more than 34,000 customers from nine locations in both the Republic of Ireland and Northern Ireland.

Musgrave Foodservice: The first company offering a full multi-temperature range of products for the professional caterer across the 32 counties in Ireland.

Format | ROI Number | Outlets Average | Sales Area
SuperValu | ROI 195 | >10000 sq ft
Centra ROI | 473  | 2 – 5000 sq ft
Daybreak | ROI 155 | 1 – 2000 sq ft
Mace (NI) | 200 |
Musgrave Cash & Carry ROI / NI | 10 

Retail Brands:

 5. Product Range

SuperValu and Centra have taken advantage of their nationwide spread of stores situated in the local communities and supply the growing demand for convenience ‘on the go’ foods. SuperValu’s core offer is fresh, Irish and local produce and Centra has a particular focus on convenient fresh food and food to go. 

SuperValu Own Label Brands

Good – Nice Price
Better – Supervalu
Best - Supreme 

SuperValu has a broad own label offer, encompassing a wide range of categories.  The own label brands includes:

SuperValu Nice Price
Supervalu Standard Brand 
    - SuperValu Organics 
    - SuperValu Cooks Ingredients
    - SuperValu Just Cook 
    - SuperValu Goodness
SuperValu Supreme

Centra 
Centra has a range of own brand products in core, grocery, chilled and frozen categories, as well as food-to-go and chilled convenience. Its brands include

  • Centra
  • Good to go
  • Simply Cook

Musgrave
Today Brand Musgrave also has an own label range of product under the ‘Today’s’ brand with over 150 products.

 APPENDIX

Musgrave ‘Simplifies Retail Ordering’ System
Ireland’s biggest IT project, this IT system was piloted in 5 SuperValu stores to maximise efficiency and product availability for shoppers. This system will provide a common means of ordering products across all ranges and this will be supported by precise information to help ensure that an accurate order is placed (ref: Musgrave Website, Oct’09.

Musgrave Group opposed to illegal, unfair and unsustainable business practices
In response to the Fine Gael Bill on Fair Trade published in August 2009 Musgrave Group has stated that it does not engage in the practice of ‘Hello Money’ and would welcome any moves to control and eliminate such “sharp practices” from the Irish grocery sector.

It believes such practices jeopardise the businesses of local suppliers and damage the reputation of the grocery industry and responsible players within it. However, a distinction needs to be made between sharp practices and legitimate negotiation which is vital to driving down costs and delivering value to consumers. (ref: Irish Times Aug’09 & Musgrave Website, Oct’09)

SuperValu Website featuring Irish Local Suppliers
The SuperValu website profiles a number of small local suppliers highlighting their history and provenance.

Sourcing & Distribution

Sourcing:
In 2007 Musgrave stated that 75% of all products sold in SuperValu and Centra are sourced or manufactured in Ireland.  SuperValu and Centra franchisees buy 90-95% of their product from Musgrave with the remainder sourced from local producers.  Although retailers buy most of their products through MRPI, retailers do have some degree of autonomy and are encouraged to buy a small amount of locally sourced fresh and speciality produce to cater for local tastes and support local business.

Information relevant to Irish food manufacturers regarding policies Musgrave may have to source products locally:
From a Food Safety & Quality perspective for Local sourcing, Retailers are required to ensure that all local suppliers complete a Vendor Questionnaire.  This Questionnaire is part of the Musgrave Food Safety Manual and covers all Due Diligence aspects of supplier requirements. Review of these questionnaires forms part of the EIQA annual audit and internal audits. Musgrave is committed to stocking locally produced food which meets the needs of local consumers and fulfil the quality and range requirements of the brands.

Musgrave Wholesale Partners are open to applications from local manufacturers and do stock local products in all branches.

Information relevant to Irish food manufacturers regarding policies Musgraves may have to source organic products:
Musgrave supports organic producers and would like greater availability of Irish grown and produced organic fresh foods.  They are members of Organic Trust and are audited annually for our compliance with their requirements. All Organic suppliers need to provide evidence of their approval status / certification as required as part of the annual Organic Trust audit

Musgrave Wholesale Partners are open to applications from local manufacturers and do stock organic products in their branches.

Information relevant to Irish food manufacturers regarding any policies Musgraves may have to source Fairtrade products:
Musgrave Retail Partners Ireland is committed to providing their consumers with a suitable range of Fairtrade Mark products across all main areas of the store where Fairtrade alternatives exist.
Musgrave Wholesale Partners are open to applications from local manufacturers and do stock Fairtrade products in their branches.

Distribution:
The Retail Partners franchised division of Musgrave operate a central logistics model in Ireland.  It began with dry grocery in the 1950s and has grown with the needs of the franchisees to a network of six depots handling chilled, fresh, frozen and ambient product in Cork, Dublin, Kilcock and Belfast.  Work is currently underway with expansion of the Cork, Kilcock and Dublin depots to add a further 19,000sq m to handle future growth within the group.

Retailers place orders using Musgrave IT systems and receive deliveries 2 – 6 times per week, dependant on demand.  Deliveries of Chilled products are delivered in the morning before 9am to SuperValu stores and before 12 noon to Centra stores.  The model handles backhaul of product into the depots through the returning store delivery fleet, which reduces carbon emissions by reducing the need for supplier deliveries.

 Supervalu / Centra have three specific ways of servicing them:

  • Central Distribution: This system can only facilitate six day week delivery, orders are not computer generated.
  • Central Billing: A central billing account needs to be sanctioned by buyers and is used for companies who deliver direct to store.
  • Non Central Billing: this option is not approved or welcomed by head office
    Retail Pulse, October 2009

Pallet Information:
Blue Chep pallets are required (Musgrave is part of Chep pool), though the warehouse will take white pallets if they are in good condition

Crate Information:
Where possible, crates are used. There are different specifications depending on the product i.e. green for fruit & veg, blue for raw, yellow for cooked.  The crates are hired through Kunhe Nagel.

Outer Barcode Information:
6 digit codes, best before dates and outer barcode in line with GSI standards.

All products must have inner & outer barcodes on all products. Packaging must be appropriate for Cash & Carry division - brown boxes are not suitable. Product should be shrink-wrapped or box should display image of the product.

Musgraves policy on returns:
Musgrave Chilled distribution does not take returns for reasons of temperature control.

Musgrave Wholesale Partners expect suppliers to have created a market for their product before listing and therefore would expect returns on unsold products be facilitated.

Musgraves strategy on Shelf Ready Units/Shelf Ready Packaging:
Musgrave Retail Partners support use of shelf ready units/shelf ready packaging e.g. current use of combis for delivery and display of plants.

They actively investigate on case by case basis possibility of use of above.

Depending on the type of product, this can be discussed with individual Trading Manager.

Pricing & Promotional Positioning

Pricing Position
SuperValu combines an Everyday Low Price Strategy on staple products like bread, milk and butter etc with regular strong price promotions on key brands and fresh food.  Musgrave has a commitment to competitive retail prices.

Promotional Positioning
At SuperValu, stores heavily communicate competitive prices and promotions with signage throughout the store. There are also a number of promotions such as BOGOFs and ‘25% Extra Free’ as well as the token based promotions such as ‘Getaway Breaks’ and household items.
Centra vary promotions, with the emphasis more on convenience categories in city centre stores and a wider spread of promotions in larger suburban and provincial supermarket stores.  

Musgraves Promotional calendar:
This information is available to manufacturers from the relevant Trading Manager in any of the Musgrave divisions.  This will be provided by Trading Manager at initial meeting.

Buy in dates for promotions:
The buy in dates again are available from the relevant Trading Manager.

Price promotions that are allowed in Musgraves:

  1. Buy one get one free
  2. Buy one get one half price
  3. Extra fill / extra % free
  4. 3 for 2
  5. 2 for €x
  6. Price reductions
  7. Loyalty Promotions (Getaway breaks etc)

Promotions are encouraged as Musgrave Wholesale Partners must be able to equip their customers to compete in the market place. Musgraves are an excellent route to market for progressive food manufacturers.

Instore tastings in Musgraves:
In store tastings are permitted and encouraged in Musgrave stores and Cash and Carry’s. In some of the SuperValu stores there are in store tasting units which actively encourages instore tastings.

SuperValu or Centra magazine/promotional leaflet
SuperValu Fresh Magazine is issued twice a year (summer and Christmas edition) in which manufacturers can feature or advertise. The 3-weekly promotional handbill for both SuperValu and Centra stores offer suppliers an opportunity to be featured – these have extensive national circulation.

Musgrave Wholesale Partners offer advertising opportunities in a Musgrave Cash & Carry magazine, shoppers guide & price list order form for delivered trade. The 13 promotional cycles are communicated in Retail , Liquor & Foodservice leaflets which suppliers may contribute to.

 
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