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Tesco must sell the Joyce family’s Oranmore store to complete the purchase of other stores

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Tesco must sell Joyce’s Supermarket branch in Oranmore so it can continue buying the rest of the chain, the Competition and Consumer Protection Commission (CCPC) has ordered.

esco has legally committed to divest Joyce’s supermarket in Oranmore, Co. Galway, as a going concern to a suitable buyer, subject to CCPC approval, the regulator said.

It also committed not to buy back the company for a period after its sale. An independent monitoring trustee will be appointed to ensure compliance.

After notifying the sale last December, the CCPC conducted a preliminary investigation into the proposed acquisition and concluded that a full investigation was needed to determine whether the proposed transaction could lead to a significant distortion of competition.

This investigation identified potential competition concerns related to the number of alternative, effective competitor supermarkets in the Oranmore area.

The commitment means that Tesco will buy and operate the other nine outlets that have been owned and operated by the Joyce family for the last 70 years.

Tesco has announced that all stores will be rebranded as Tesco branches next year and will include services such as online shopping, click-and-collect, clothing and housewares.

The shops – including three branches in Galway City – employ around 500 people.

Joyce’s Supermarkets shields group sales, but they are likely to be at least 60 million euros a year. Even with a margin of around 2 percent, that would result in a pre-tax profit of at least 1.3 million euros.

The chain is run by Pat Joyce, who started his retail career after school and joined Tesco in London in 1979 where he completed a trainee management course.

Mr Joyce said last December that the family had “carefully considered” Tesco’s takeover approach and were “very pleased to be passing our business on to an established brand”.

He said the acquisition would be “of significant benefit” to employees, suppliers and customers.

https://www.independent.ie/business/irish/tesco-must-sell-joyce-familys-oranmore-outlet-to-complete-purchase-of-other-stores-41730138.html Tesco must sell the Joyce family’s Oranmore store to complete the purchase of other stores

Fry Electronics Team

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