Centra plans to switch to cheaper ‘own brand’ amid inflation

Centra sees customers increasingly turning to its cheaper ‘own brand’ products to cut costs amid rising inflation, after the convenience retailer saw a 2.5% increase in its sales last year to 1.98 billion euros, according to its managing director, Ian Allan.

While he said the retailer’s sales for this year were “significantly ahead” of a broader 5-7% contraction expected across the sector, shoppers at his stores are “heading for bigger deals.” interesting”, in particular the nearly 1,000 lines of the company’s own products. -branded products.

Products in the Centra Own range are up to 33% cheaper than better-known brands sold in its stores, according to figures published on the company’s website.

While Kantar, the data analytics firm, reports that price inflation in the sector is 4.5%, Mr Allen said that at Centra it was around 3.5%.

“We are working with suppliers to continue to lower those pressures with our offering,” Allen said.

“The pressures on food and food prices come from rising energy costs and raw material prices, which can be directly linked to what is happening in Ukraine, and labor issues work.”

Centra is part of the Musgraves group. Mr. Allen declined to comment on the company’s profitability.

Stores

There are currently 483 Centra stores in operation in Ireland, over 90% of which are independently owned. The company announced that it plans to open 18 additional stores in 2022, involving an investment of 25 million euros and the creation of 430 jobs.

“The expansion program comes on top of 11 new Centra stores opening in 2021 and the €17 million deployed last year to revamp and refresh 64 existing stores,” the company said. “Centra supports over 38,000 jobs and directly employs 11,716 people. »

Irish consumer confidence fell to an 18-month low in April as concerns over the cost of living intensified, KBC Bank Ireland said late last month, as households worried about their future spending plans and the deteriorating economic outlook in general.

The lenders’ sentiment survey fell from 67 in March to 57.7 in April – well below its long-term average of 86.6.

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