With 100,000 customers and a workforce of 1,200, thinking big has clearly reaped rewards for the Caulfield Group, which is among the largest independent operators within the Supervalu Musgrave chain.

It comes as something of a surprise then to hear the team behind the recent management buyout of the company stressing that "thinking small" has been crucial to its success.

It is the commitment to serving the interests of local communities in its stronghold of the south and south-east that has turned Caulfield into such a lucrative operation, with sales worth €97.4 million in 2003, explains managing director Mr John McCarthy.

Together with brother and sister Mr Thomás Caulfield and Ms Ann Marie Caulfield, Mr McCarthy recently took over from the original shareholders of the group, which started trading in 1978.

Caulfield was valued at €70 million, in what is believed to have been the largest MBO involving a private Irish company this year.

Funded by Anglo Irish Bank, the buy-out saw the new team assuming control of the group founded in New Ross by four Caulfield brothers - Colm, Paddy, John and Tommy - with brother- in-law Mr Martin Sinnot.

To ensure that services meet community needs, a high degree of autonomy is afforded to store managers. Corporate drones are the last thing the Caulfield group needs tending its grass roots, he says.

"They're the ones at the front line so they understand our customers' requirements the best. That's really what we believe one of our strengths to be - anticipating the needs of our shoppers," says Mr McCarthy.

Caulfield evidently regards itself - and the wider Musgrave family - as once removed from the huge monoliths that comprise its major competitors. The directors, who visit as many stores as possible each week, say they are on first name terms with many of the rank and file.

"People are often struck by the atmosphere in our stores - our employees are so friendly and seem to get on so well. This isn't by accident. We do attempt to nurture a sense of community," says Ms Caulfield.

To this end, the group is widely involving in sports and other forms of sponsorship. Not only is it a way of "giving something back", sponsorship helps forge long-standing community links, it believes.

"Very often, managers will come to us with an idea for sponsorship. That's the way we like it - things working from the grass roots rather than from the top down," he says.

The Caulfield empire is, by any standards, impressive. The group operates seven Supervalu stores in Malahide, Co Dublin; Bandon, Co Cork; New Ross and Enniscorthy, Co Wexford; Loughboy, Co Kilkenny; Waterford; and Tipperary town.

It also owns three shopping centres in Loughboy, Waterford and Bandon. Its stores average 16,000 sq ft, double the Supervalu threshold, and are understood to be the highest-selling group of stores within the Musgrave franchise chain.

The seven stores have a combined floor space of 116,000 sq ft, with the three shopping centres adding 100,000 sq ft to the company's portfolio of properties.

Caulfield made profits of €1.67 million before tax in the year to end March 2003.

The new owners have said they will continue the development of the group, including the planned €4 million redevelopment of the Loughboy shopping centre, acquired in 2003. There are also plans to invest around €1 million in the Waterford Hypercentre.

Growth through acquisition and greenfield development is a core strategy but logistic practicalities are an overriding factor, explains Ms Caulfield. "We do want to expand but it has to make sense in the context of our overall operations. At the moment, we are concentrated in certain parts of the country. To move to other areas, there might have to be a cluster of sites we could invest in, so that certain efficiencies come into play," she says.

The group's strategies are formulated in close consultation with Musgrave. Caulfield describes its relationship with the wholesaler as symbiotic and mutually complementary.

"If either party lets the standard slip, both suffer. When you see a Supervalu store advertised on television then your shopping experience has to match that," says Mr McCarthy.

But while they have acknowledged the shift towards non-grocery goods, introducing a line of homeware, Caulfield fears other trends in the industry could have negative consequences. Attempts to overturn the Groceries Order, which prohibits below-cost selling, draws a sharp reaction.

They are just as forthrightly opposed to a rescinding of the ban on hulking out-of-town hypermarts, arguing that such a move could strip many towns of their shops and much of their charm.

"This is something which happened in the UK and which they are now beginning to regret," explains Mr McCarthy.

The Caulfield group has viewed the rise of the convenient store industry with interest but has no plans to invest in speciality "symbol" franchises such as Spar and Centra.

It is confident that the Supervalu brand, with its emphasis on flexibility and fresh food, is flexible enough to fit the particular needs of individual communities, says Mr McCarthy.