Tesco Ireland has announced the acquisition of ten supermarkets operated by Joyce's Supermarkets, subject to competition authority approval.
The stores, which are all located in Galway, will be rebranded as Tesco outlets during 2022 on a phased basis. The value of the acquisition has not been revealed.
The acquisition marks the first significant investment by Tesco in a portfolio of stores in the Republic of Ireland since it entered the market in 1997.
According to Tesco Ireland chief executive Kari Daniels, the move forms part of Tesco's strategic ambition to bring quality and value to more shoppers.
'A Great Platform'
“I am really pleased that we’ve reached agreement with Joyce’s Supermarkets and look forward to bringing Tesco to more communities in Galway in the year ahead," she said. "This agreement provides a great platform for us to bring our value, quality and range of products to more customers, and to bring our Grocery Home Shopping service to more locations in the west of Ireland."
Pat Joyce, the managing director of the family-owned Joyce's Supermarkets business, said that he was looking forward to working alongside Tesco into the new year as part of a transition period.
“We have carefully considered the opportunity and are very pleased to pass our business on to an established brand in Tesco that promotes quality and excellence across its business, and which has an established presence in the Irish market," he said.
"I wish to express our gratitude for the loyal support of our staff, suppliers and customers and I would like to sincerely thank them for being part of our journey over many years. Should this acquisition be approved, I believe the move will be of significant benefit to them."
The Joyce family will retain full ownership and control of their other business interests.
Tesco currently holds 21.3% of the Irish grocery market, according to the latest Kantar figures. The group reported a 2.6% decline in like-for-like sales in Ireland in the first half of its financial year.