THE Irish retailing division of Associated British Foods continues to make a major earnings contribution to the group. Results this week from AB Foods covering the year to mid September show group profits of £430 million sterling, a 15 per cent increase, on a 17 per cent growth in turnover to £5.7 million. Retail operations in Ireland on both sides of the Border, comprising Quinnsworth/Crazy Prices, Stewards and Penneys, chipped in pre-tax profits of around £69 million on an estimated turnover of £1.5 billion, a solid 25 per cent improvement over the previous year.
While ABF does not provide data for its individual component parts, it is thought likely that Quinnsworth may be producing annual profits of around £42 million, with Crazy Prices making £2.6 million and the Northern Ireland-based Stewards generating approximately £7 million sterling.
Fierce price competition and the multiple choice on offer to consumers by market saturation in grocery retailing has shifted the battleground for market share from products to service. AB Foods is expected to extend the "loyalty card" system to its customers in the Republic.
The decision could be a precursor for a move into financial services, like banking and insurance, keeping up with similar diversification at Sainsbury and Tesco.