Investment expert warns that future of big supermarkets in NI threatened by protocol

Investment adviser Mark O’Connell of OCO Global has warned that the long term future of Asda and Sainsbury’s in Northern Ireland could be threatened by the NI protocol – potentially joepardising 6,000 jobs.

Meanwhile M&S has called for a further six month extension to the grace periods for checks on supermarket goods in to Northern Ireland.

On the flip side, Invest NI is stating that it’s in negotiations with up to 50 firms that view a Northern Ireland location as a postive benefit, regardless of the protocol.

OCO Global’s chief executive Mark O’Connell analysis is that there is strong interest in overseas companies for Northern ireland as a potential location spot due to unfettered access to both EU and GB trade.

The protocol means that Northern ireland remains in the EU single market for goods, but introduced a border int he irish sea which means extra costs for supermarkets head-quartered there. Sainsbury’s, Tesco and Asda all have head offices in GB. Lidl is the only leading supermarket whose head office is not in GB.

Mark O’Connell’s view is that Tesco and Lidl will fare better as both are already operational all-Ireland, and therefore their supply chains can cope well with the protocol – which has thrown up a raft of supply chain issues for Asda and Sainsbury’s.

Sainsbury’s has been working with the Henderson Group, as an alternative source for GB brands.

O’Connell says that those supermarket chains that are faring best post-Brexit in Northern Ireland, are those with all-island supply chains.

Mr O’Connell’s views however, are merely speculation, giving the trading environment. Costly checks at ports for those supermarekts that don’t have an all-island supply chain, may make some of the large supermarkets position in the Northern Ireland market vulnerable in the long-term.