Annual report & review 2006 - Shopic.com

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We’ve honed an approach to retail that brings real value to retailers, consumers and local communities 10 What does this kind of consistent vision mean for consumers CM: Consistently high standards coupled with innovation means our retailers are now able to compete more effectively. More consumers experience better service, more fresh local produce and quality convenience shopping within the communities in which they live and work. In practical terms, it means every part of our business puts consumers at the heart of its value proposition. Nothing is more important. It’s about driving innovation to create an even better local shopping experience for people tired of bland, impersonal supermarkets. And unlike the multiples our convenience offering is not a cut down supermarket – these are true convenience stores where we have developed an excellent fresh range and key partnerships with award‐winning local suppliers. And because a consistent vision means driving up standards right across the business, not everything we do is immediately apparent to consumers. For example, May 2006 saw significant enhancements to our supply chain, with the official opening by the Taoiseach of a 150,000 square feet ambient warehouse and distribution operation in Kilcock, Co. Kildare. This €35 million facility – processing more than 280,000 cases of ambient groceries a week – operates behind the scenes. It certainly helps our retailers by enabling just-in-time Musgrave Group Plc Annual Report & Review 2006
Interview with our Group CEO ordering and means even better availability for their customers – but it’s the kind of innovation that isn’t directly visible to shoppers. How are Musgrave retailers coping with increasingly competitive trading conditions CM: Retailers are winning when they focus on providing the consumer with an offer that differentiates them from competitors and directly addresses local needs. A good example in Great Britain is Jim Boggon, a Londis retailer in Edinburgh, who nearly sold‐up shop when his business came under threat from the multiples. Instead, with our help he revamped his store, focused on what he is good at – fresh and food-to-go – and his turnover is up 140 per cent despite the competition. Jim’s story is one of many that are testament to the fact that if you provide the consumer with excellent product, and excellent service, and deliver that service with passion, it makes a difference. These things can achieve extremely positive results. It’s important to remember that all our retailers live and work in the communities they serve. With our help they can shape their businesses to address markets they know and understand in a very direct way. you combine turnover of our retail partners across all four markets they had a turnover of €6.7 billion. In Ireland, Centra retailers achieved combined sales of €1.2 billion, up 17 per cent. 2006 was also a record year for SuperValu’s retailers in Ireland with sales in excess of €2 billion for the first time, up 11 per cent. Daybreak and DayToday sales in the convenience market across the island of Ireland increased by 16 per cent to €264 million. In Northern Ireland, SuperValu and Centra retail partners achieved strong growth in sales of €474 million, up eight per cent on 2006. In Great Britain Budgens and Londis retailers recorded robust sales of €2.6 billion. What’s more, it’s clear the independent model is really working in that market. The independently owned Budgens stores performed particularly well and recorded sales growth of 88 per cent with the number of independent stores increasing to 108. In Spain, SuperValu and Dialprix independent retailers recorded sales of €113 million, up eight per cent in 2006. The start of 2007 has seen our businesses performing in line with or ahead of budget. And because our retailers own their own stores, they can bring their personalities and flare to their businesses. If you go to Scally’s SuperValu in Clonakilty, you’ll find the longest cheese counter in Ireland. Go to Raj Chandegra’s Londis in the GlaxoSmithKline building in Brentford and you’ll find a store tailored to a demanding business community of 3,000 workers, Quelly’s in Kilrush where you’ll find one of the best fish counters in the country, or Terry and Melanie Philpott’s award-winning Castle Cary Londis store that succeeds with a special blend of community active retailing. This level of innovation and diversity, this consumerfocused retail simply isn’t possible for multiples tied to uniform, nationwide formulas. Will this type of innovation help grow the business This implies there’s now real momentum behind your UK brands. To what do you attribute that success CM: The past 12 months have certainly seen significant progress in Great Britain. For example, I’ve been very pleased with the high levels of interest from independent retailers who want to own a Budgens store. This means we are on schedule to have all these stores in the hands of independent retailers by 2008. The point here is that our retail partners in Great Britain have recognised that through our long experience in Ireland, we’ve honed an approach to retail that brings real value to retailers, consumers and local communities. Put another way, as a Group we make a considerable impact not only on the prosperity of the country, but on the social fabric of Ireland Inc. CM: Well, we’ve had a very satisfactory set of results for 2006, with Musgrave Group sales of €4.6 billion and if These are the values and experience we are starting to bring to communities in Great Britain. I find it ‡ 11 Musgrave Group Plc Annual Report & Review 2006
Page 1 and 2: Annual report & review 2006
Page 3 and 4: Musgrave at a glance 4 Our Chairman
Page 5 and 6: Musgrave at a glance hoW Do We SouR
Page 7 and 8: Our Chairman’s statement WoRkING
Page 9: Interview with our Group CEO Making
Page 13 and 14: Interview with our Group CEO exciti
Page 15 and 16: Review of 2006 This is a year in wh
Page 17 and 18: Our business is all about respondin
Page 19 and 20: Review of 2006 Our innovative Marke
Page 21 and 22: Review of 2006 Our business in Grea
Page 23 and 24: Different & better - retailers & lo
Page 29 and 30: Budgens Virginia Quay Providing a h
Page 33 and 34: Different & better - consumers & co
Page 39 and 40: to meet international best practice
Page 41 and 42: Musgrave Group head office, Cork 41
Page 43 and 44: Responsibility charitable support A
Page 45 and 46: accordance with management’s auth
Page 47 and 48: Our board of directors peter Musgra
Page 49 and 50: Results Turnover amounted to €4,5
Page 51 and 52: Finance review Taxation The effecti
Page 53 and 54: Summary financial statements CONSOL
Page 55 and 56: Summary financial statements Notes
Page 57 and 58: Summary financial statements 5 Taxa
Page 59 and 60: Summary financial statements 10 Ban
Page 61 and 62:
Summary financial statements 15 Rec
Page 63 and 64:
Summary financial statements Analys
Page 65 and 66:
Summary financial statements Moveme
Page 67 and 68:
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