Supermarkets
The Republic of Ireland has two major supermarket chains: Tesco Ireland, a subsidiary of Tesco plc with 91 stores (4 superettes, 5 small super, 44 large super, 38 hyper), and Dunnes Stores, owned by a trust consisting of members of the family of its founder, Ben Dunne Snr, and boasting 123 stores (this number includes some stores without supermarkets, however). A third large supermarket chain is Superquinn, though this has only 21 stores, and is based mainly in Leinster (2 small super, 15 large super, 4 hyper). Marks and Spencer also operates a small number of supermarket sites.
The traditional multiple supermarket chains have been also challenged by the emergence of the Musgrave SuperValu supermarket format. These stores are operated mostly by franchisees, although several franchisees have built up large chains in their own right within the SuperValu group. There are now 173 SuperValu supermarkets in Ireland. SPAR and Londis have also branched out into supermarket format franchise stores, with their Eurospar and Londis Plus formats. As yet these are a minority of stores.
Recent years have also seen the emergence of cut-price own brand chains Aldi and Lidl into the Irish market. These two chains have, in the space of half a decade, won an 8% market share, and operate over 100 stores in total.
While there is much competition in the supermarket sector, it is tempered by the presence of the Restrictive Practices (Groceries) Order 1987 (known as the "Groceries Order"). This order makes it illegal to sell any good below the invoice price. The order was instituted to prevent a price war along the lines which led to the collapse of the supermarket chain H Williams in 1987.
This has the effect of banning cross-subsidy and loss leaders.
However it is held by many to restrict competition, and did not prevent the withdrawal of Roches Stores from food retailing and Iceland from the Republic of Ireland altogether, both in 2005. Its removal is opposed by the Retail, Groceries, Dairy, and Allied Trades Association, the newsagents and convenience stores trade association, a powerful lobby group in Ireland. On 8 November 2005, Micheal Martin, the Minister for Enterprise, Trade and Employment announced that the Order would be revoked in early 2006. This was done so via the enactment of the Competition (Amendment) Act 2006 in March 2006, section 4 (1) of which explicitly repealed the Order.
Iceland returned to the Republic of Ireland in 2008.
Read more about this topic: Retail In The Republic Of Ireland