B&Q calls for end of retail cap

British-owned DIY chain B&Q has called again on the Irish Government to relax its "anti-competitive" retail planning guidelines…

British-owned DIY chain B&Q has called again on the Irish Government to relax its "anti-competitive" retail planning guidelines.

Following the launch of a major recruitment campaign for the company's new Tallaght store, due to open in October, B&Q used the opportunity to argue that it could not offer its full range of DIY products when the retail floor space was capped at 6,000 sq m.

Controversy over the retail cap has been gathering pace in the past eight weeks after the Tánaiste, Ms Harney signalled that she might abolish the guidelines.

The move came just days after Swedish furniture store Ikea indicated it would open one of its flatpack furniture hyperstores in Dublin if it gained permission for additional floor space.

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B&Q's store in Tallaght will be the first of 10 stores to be rolled out across the State over the next four years. Analysts predict the expansion will affect domestic competitors Woodies and Atlantic.

Mr John Mattimoe, an analyst with Merrion Capital, said B&Q's product mix would enable it to gain market share and he believes there is considerable scope, particularly in the Dublin area, to roll out a further five-six stores.

B&Q estimates its expansion programme will provide an additional 1,000-1,800 new jobs in Ireland as well as significantly increasing the value of business to its Irish suppliers, which is currently worth €80 million.