Why is a UK government deal on a new Sainsbury’s store in Ireland not happening?

Here are the facts about the proposed Sainsburys store in the Irish Republic, which would see a large part of the retail space being used to cater for the Irish National Childbirth Organisation.

Sainsbrough’s have been working with the Irish Government on a deal for more than a year, and they’ve made clear that they expect to be able to get the site up and running before the end of the year.

In March, they announced that they were to open the first Irish store in their new headquarters in the UK.

Sams spokesperson said that they had secured a “significant” commitment from the Government for the opening of the store in March, and that they are now looking to raise money for the project. 

 However, as the Sains Bakers Association has already said, the Government has indicated that it would be unable to guarantee the store would open in March. 

So how will the Sainburys be able get the Irish store up and going before the holiday season?

 According to the SAA, they are hoping to secure a grant from the Department of Finance to help finance the project, but they will need to raise €500,000 in order to do so.

In the past, the SFA has received grants from the Irish Ministry of Finance for projects such as the creation of a local supermarket, and the construction of new buildings, but it seems unlikely that they’ll be able make any similar grant for the Saves Bakers Store.

The Irish Government has previously announced that it is willing to help with the development of the Sashes retail space in Dublin, and has provided €100,000 for a €2.5m loan from the European Investment Bank (EIB).

However, according to the Irish Daily Mail, the Irish Finance Minister Michael Noonan has told them that the EIB will only finance projects that have a “commercial value” for Ireland, meaning that the Sansbury’s project will not benefit from the EBI funding.

Sansburys spokesperson added that the Irish government will only support projects that benefit Ireland and its economy, and not to fund projects that could harm Ireland.

 In a statement, Sainsbank said that their project would “not be subject to any external financing”.

However, Sansbroughs spokesperson has said that the store will be in Dublin from the start of the new year.

They have said that there will be a “no-strings attached” offer to bring the store into operation before the year is out.

They also added that they have already secured a significant number of commitments from local retailers and suppliers, and have already been working closely with Irish retailers to secure contracts for the retail site. 

  The Sains bakers association, in its statement, also said that it had secured commitments from a number of local retailers, and added that “there are no plans to bring any Sains store to Ireland until a viable retail and distribution solution is in place”.

 “The Irish government has promised to invest in the development and operation of a Sains supermarket in the Republic and the Sours bakers are hopeful that this commitment will be fulfilled,” SainsBakers Association spokesperson said.

The news comes after another Sains restaurant in the US, Kettlehouse, opened its doors in March last year, which is a year after it opened in the same town in Ireland. 

Sainsboughs have also recently announced plans to expand their retail and catering business in the USA, which could see them expanding their Irish operation to include Sains bakeries.

In the meantime, the project could also open up the possibility of a future expansion of Sains, with Sainsbrands executive chef Paul Murphy said to be looking into a possible deal with an Irish retailer. 

What are your thoughts on this article?

Would you like to see the Sinsbury’s Irish store opened in Ireland?

Are you concerned that the deal could damage the Irish economy and the Irish consumer?

Let us know in the comments below! 

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