Tesco Ireland has announced the acquisition of ten Joyce’s Supermarkets stores based in Galway.
The stores currently operate under the Joyce family’s independent brand. Subject to approval by local competition authorities, they will be rebranded as Tesco stores throughout 2022, with existing staff being invited to remain with the business.
Tesco stated that it would be engaging with suppliers to the Joyce’s business to “identify and develop opportunities”.
Tesco first entered the Irish market in 1997 and the deal marks its first significant investment for a portfolio of supermarkets in Ireland during that time. Financial details were not disclosed.
Tesco currently controls 21.3% of the Irish market from 151 stores, including five in Galway.
The retailer’s local CEO Kari Daniels stated that the move was part of the company’s strategic ambition to “bring its quality and value to more customers”.
He added: “I am really pleased that we’ve reached an agreement with Joyce’s Supermarkets and look forward to bringing Tesco to more communities in Galway in the year ahead.
“Pat Joyce, the management and wider team at Joyce’s Supermarkets have built a fantastic business over many years and there are great aspects of the Joyce business that can complement our Tesco offering. We look forward to welcoming Joyce’s’ colleagues and customers to Tesco and engaging with suppliers and the wider community in Galway, subject to CCPC review, as soon as possible.”
Pat Joyce, Managing Director of Joyce’s Supermarkets said it was a historic moment for his business: “We have carefully considered the opportunity and are very pleased to pass our business on to an established brand in Tesco that promotes quality and excellence across its business, and which has an established presence in the Irish market.
“I wish to express our gratitude for the loyal support of our staff, suppliers and customers and I would like to sincerely thank them for being part of our journey over many years. Should this acquisition be approved, I believe the move will be of significant benefit to them, and I would look forward to continuing our work well into next year as part of a transition period.”
The Joyce family will retain full ownership and control of their other business interests.
NAM Implications:
- The key issue for suppliers is the possibility of prices & terms disparities.
- Re. possible differences to terms for each retailer.
- …and if Tesco is embarking on growth via acquisition in Ireland.
- (especially by acquiring smaller chains…)
- (coupled with Aldi’s recent revelation of ROI profits)
- Then suppliers might benefit from harmonising of their prices & terms in the Republic…
- Before the mults do it on their behalf…
