Superquinn chief executive Simon Burke reckons the Irish grocery chain will enjoy sales growth of 13% this year as it embarks on an expansion drive.

The company reported sales of €620m (£463m) for 2007, up 7% on 2006, but this was expected to rise to €700m (£523m) in 2008, he said.

Burke was installed three years ago when the family-owned chain, established by Feargal Quinn in 1960, was acquired by business consortium Select Retail Holdings for €450m (£336m). At the time sales were in decline as the chain faced challenges from competitors such as Tesco, Dunnes and M&S.

But this week Burke said Superquinn was "resurgent" and on course to become the Republic's fastest-growing retailer.

New own-label products were contributing to the sales growth, with the Superior Quality range of prepared food, launched last year, proving particularly successful, with sales 40% ahead of target.

A sale and leaseback properties deal, which raised €142m (£106m), would help fund expansion, with five new outlets due to open in Dublin this year, bringing the store total to almost 30.

Burke said the company was also considering opening stores in Cork and Galway, which would be virgin territory for Superquinn.

n Expansion is also on the agenda for the Musgrave group, which operates the SuperValu and Centra franchises. Group chief executive Chris Martin said €180m (£134m) would be spent over the next 12 months upgrading stores and opening new ones. "Between our retail partners and the group directly, we would expect to create 1,000 to 1,200 jobs," he added.