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Dobbies look to put down Irish routes

DOBBIES, the Scottish garden centre chain, is casting an eye across the Irish Sea at it embarks on the next phase of its expansion drive.

The group, which this summer will reveal record annual sales of around £112 million, up from the previous year's haul of £104m, has already laid out ambitious growth plans to be a £1 billion business with 100 sites in the next ten years.

Founded by James Dobbie in Renfrew in 1865, the company was acquired three years ago by Tesco following a takeover tussle with retail entrepreneur Sir Tom Hunter, but remains independently run. Its head office has been located on the outskirts of Edinburgh for the past 77 years.

A £50m growth burst has resulted in the opening of five centres in the past year, taking the store count to 29 and creating 600 jobs, including around 400 in Scotland.

The firm made its first foray into Northern Ireland, opening a site in Lisburn near Belfast, and is now looking to dig further into the Irish market.

Updating on progress almost three years since the group's shares were delisted following the Tesco takeover, chief executive James Barnes said: "We are looking for more opportunities in Northern Ireland and possibly in the south (of Ireland].

"There are three stores under construction in England so the south will overtake Scotland in September, at least temporarily. There are still one or two pockets in Scotland we would like to have a presence in."

He described the long-term goal for 100 branches as "realistic". Dobbies' biggest competitor - The Garden Centre Group, formerly Wyevale - currently runs 119 centres.

The opening of sites in Carlisle, Peterborough and Liverpool this year along with solid organic growth will take sales to a projected £150m in the current financial year to February 2012. It comes in spite of what Dobbies admits is a "challenging" retail backdrop.

Source : Scot Reid Scotland on Sunday
http://scotlandonsunday.scotsman.com/business/Dobbies-looks-to-put-down.6768252.jp

15 May 2011
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