The Musgrave-owned Centra franchise yesterday revealed at its annual conference in Killarney, Co Kerry, that it had sales of €850 million in 2003, a 13 per cent increase on the previous year.

The Cork-based group also announced that it planned to invest more than €100 million on the brand this year.

Musgrave said it had added 21 new stores during the year, bringing the chain to a total of 347 franchised stores around the country.

This year, it plans to add 40 stores to the network, representing a total investment of €70 million. The new stores will create 600 jobs directly, while the extension and refurbishment of 50 existing stores is likely to add a further 250 jobs.

Musgrave said that, to cater for the increase in the number of Centra franchises, it would be spending €35 million this year on the development and opening of a new 150,000 sq ft warehouse and distribution centre in Kilcock, Co Kildare. It is also planning to spend €5 million on a TV advertising and marketing campaign.

Centra is part of Musgrave's retail franchise division, Musgrave SuperValu Centra (MSCV). The group made a profit of €57.6 million in 2002, but it would not reveal if its franchise businesses are profitable.

Roches Stores recently announced that it planned to close three of its SuperValu-branded supermarkets next month, a move that will lead to the loss of 250-300 jobs. Industry sources maintain that competition from discounters Aldi and Lidl have hit the stores. However, Musgrave has pointed out that its brands have grown market share since the cut-price players' arrival in this country.

Musgrave is currently in the running to buy UK franchise Londis, but is awaiting the outcome of consultancy KPMG's review of that company.