The not-so-mighty Quinn

I was sorry to hear of the collapse of Irish supermarket chain Superquinn on Monday, although it’s obviously good news that the stores and jobs have been saved by Musgrave, the owner of Londis and Budgens here and Supervalu and Centra in Ireland.

One of my first assignments on Retail Week in 2005 was going to Dublin to Superquinn’s refurbished Blanchardstown store, with then-chairman Simon Burke. It was an outstanding store - it went on to win store design of the year at the Retail Week Awards - and was as good an example of visual merchandising and promoting provenance as I’d seen in a supermarket.

Superquinn was a unique business, built in the image of its colourful founder Fergal Quinn. I’ve met Quinn a few times and heard him speak, and he was a genuine visionary, with a great feeling for the customer and how to not just meet but exceed their expectations. It has also always been a proudly Irish business, down to printing the names and locations of the farmer who bred the meat on the labels of the product. My grandmother always swares by the meat from the store in Clonmel, even if she goes to Tesco for the rest of her shopping.

It seems from what’s been said in Ireland that a big element of its problems was the debt the business has found itself saddled with since its 2005 takeover, when a consortium of property investors bought the business from Quinn. Reports in Ireland say it had debts of €400m by the time of its collapse, largely arising from property investments.

Property is an essential aspect of any retail business, but retailers - especially smaller businesses like the 23-store Superquinn - are best off sticking to retailing and not getting involved with investment and development. Sadly its collapse is reflective of the debt-funded property bubble which has hit so many Irish business, and is a cautionary tale, but hopefully what’s distinctive about the Superquinn brand will remain and prosper under Musgrave’s ownership.