Grocery Retail

Shoppers spend €65m across the border as Christmas spending begins

With Brexit continuing to dominate the news and the impact of a hard border still unclear, the latest grocery market share figures from Kantar Worldpanel show the value of cross-border shopping is at its highest level for five years. €64.5 million was spent shoppers from the Republic of Ireland in the 12 months ending in November 2018.

Over the past year just over one in eight households from the Republic of Ireland made at least one trip north of the border to do a grocery shop. That equates to more than 207,000 shoppers” says Douglas Faughnan, consumer insight director at Kantar Worldpanel.

“While these excursions account for a relatively small percentage of each family’s supermarket visits – on average, eight out of 270 annual trips – they spend substantially more shopping when they cross the border. Shoppers from the Republic spent €38.50 on an average shop in Northern Ireland while the average spend back home is €23.70. This is likely to be because they want to make the extra effort worthwhile.”

One of the biggest attractions for shoppers looking for a cross-border bargain is alcohol. Douglas Faughnan explains: “Of the €65 million spent by Republic of Ireland shoppers in Northern Ireland over the past year, a quarter went on alcohol, adding up to just over €16 million. No other food or drink category comes close, with dairy products accounting for the next largest share of cross-border spend, at 5.9%.”

The strength of the euro against sterling over the past two years has made cross-border shopping even more appealing, but there have been benefits for those spending in the Republic as well. Douglas Faughnan explains: “The cost of importing products to Ireland from Britain has fallen while goods made in Ireland with British ingredients have typically been cheaper to produce. This has allowed retailers to pass savings on to their customers – vital in such a competitive market – and as a result, grocery prices in Ireland have for the most part been falling since March 2017.”

“However, for only the second time in 21 months, grocery prices have increased, suggesting the prolonged period of grocery price deflation may be coming to an end.”

Halloween provided €30m boo-st

The four week run up to Halloween generated an uplift of almost €30 million for supermarkets. Supplies for parties and trick or treating were in high demand with confectionery sales up 4% compared with the same period last year. 17% of Irish households bought a pumpkin this Halloween, spending a collective €1.5 million on the seasonal vegetable.

Faughnan says: “With Halloween wrapped up and the arrival of the much-anticipated Christmas TV adverts this week, Irish shoppers are already getting excited for the festive season. In fact, more than 50,000 people had already bought a Christmas pudding by the 4th November.

ecommerce

€1.25m E-commerce fund for retailers open for applications

A new scheme meant to help Irish SMEs and retailers grow their e-commerce capabilities has opened for applications. The scheme, which is run by Enterprise Ireland, will allocate €1.25 million in funding to facilitate the acceleration of online retailer’s digital and e-commerce capabilities.

The scheme will see grants of between €10,000 and €25,000 awarded on a match fund basis with the specific purpose of supporting retailers to enhancing their online sales capabilities, ensuring they are better equipped to deal with increasing competition from overseas and help scale their businesses in international markets.

“Enterprise Ireland is committed to supporting Irish companies to realise their global ambition by providing the mentoring and financial support necessary to scale in international markets,” said Stephen Hughes, head of consumer, Enterprise Ireland.

“Ireland’s retail sector is a primary contributor to our economy, both nationally and at a regional level but it is under significant pressure, particularly from international competitors with the digital means to extend their reach to Irish consumers. By delivering the Online Retail Scheme, we intend to support Irish retailers to innovate and through innovation, to increase their competitiveness and enhance their online presence.”

“While no single intervention will solve the challenge posed by the emergence of digital commerce in recent years to traditional bricks and mortar retailers, today’s announcement marks a significant step forward by Government in firstly acknowledging the challenge faced by the Irish retail sector and secondly by beginning to put in place supports for Ireland’s largest private sector employer,” said Thomas Burke, director at Retail Ireland, the IBEC group which represents the retail industry.

The Online Retail Scheme is open to applications from retail SMEs with 20-249 employees across the island of Ireland, and who have a retail outlet. Closing date for applications is 5 December 2018.

Further information on the fund and details on how to apply are available at www.enterprise-ireland.com/retail.

 

online sales

Grants to be given to retailers to grow online sales

A pilot scheme worth €625,000 has been launched to help Irish retailers grow their e-commerce abilities and grow their online sales.

The scheme, launched by the government and set to be run by Enterprise Ireland aims to help Irish retailers export more goods through their only shops. It is hoped the scheme will provide grants to at least 25 small- and medium-sized enterprises (SMEs) in the retail sector to help improve their online capabilities and compete better internationally. The grants will be in the range of €10,000-€25,000 and at least half of the total number of grants awarded will be reserved for retail SMEs with their headquarters outside Dublin.

The grants can be used for research, consultation, implementation and training costs and will be made on a matching funds basis meaning a grant of €25,000 will only be awarded if the company is also investing €25,000 in its online trading strategy.

The scheme was announced at a meeting of the Retail Consultation Forum, a grouping of retail industry and public sector bodies chaired by Minister for Business, Enterprise and Innovation Heather Humphreys.

“Many retailers face increasing international competition on their doorstep and need to enhance their competitiveness,” the Minister said.

To apply

To apply, the retail companies must be Irish-owned with the potential to create jobs, generate sales growth and export. They must also have an existing online presence and employ at least 20 people in the Republic.

Enterprise Ireland chief executive Julie Sinnamon said the organisation anticipated “a good response” to the pilot scheme from eligible retailers. “There is a strong need for Irish retailers to innovate through digitalisation,” she said.

Lorraine Higgins, chief executive of industry body Retail Excellence Ireland, welcomed the scheme.

“This is a hugely welcome development and a sea change in policy as the export potential of Irish retailers is now being recognised. Having an online sales channel is critical given the boundaryless nature of the industry and this pilot will certainly enhance the sales capacity of the successful applicants.”

She said the organisation looked forward to seeing the scheme expanded in the longer term.

Pope's Visit 2018

Pope’s visit ‘a disaster’ for Dublin retailers and restaurants

Dublin retailers and restaurateurs saw custom drop by up to 50% over the weekend of Pope Francis’ visit in what many are calling a ‘missed opportunity’. The weekend saw widespread traffic restrictions implemented across Dublin to accommodate the papal visit, with more than 50 road closures. Business groups representing both industries are blaming poor communication around the traffic restrictions for the dramatic fall in sales.

Retail Excellence chief executive Lorraine Higgins said: “There was a 35-40 per cent decline in sales as a consequence and when sales are lost to that extent they can never be made back up.” Ms Higgins said the closures could have been manageable with better information and there was a lack of regard for businesses in the planning of the event.

“Businesses suffered as a consequence of a lack of communication around the papal visit. The understanding among the general public was that Dublin city centre was closed for business,” she said. “ “While there were restrictions on private cars, public transport was still running and it is a great pity that message didn’t get through….I can appreciate the efforts the various authorities have to go through, but the fact of the matter is the Pope wasn’t going through the city centre until some time after 4pm on Saturday, so retailers could have had almost a full day’s trading.”

Restaurants Association of Ireland chief executive Adrian Cummins said the visit was a missed opportunity to highlight what Dublin city centre had to offer. “With so many international media in Ireland this could have been a great showcase for the city, but instead it was a monumental disaster for businesses with people seeing losses of 30 to 50% depending on their location.

” Business organisations had attended a meeting at the start of August with representatives of the Garda, the National Transport Authority (NTA) and the World Meeting of Families organisers, but Mr Cummins said no further information came until the information packs were sent out to businesses and residents last Thursday. By that stage it was too late.” There was no excuse for the lack of communication, Mr Cummins said. “It’s not as if the Pope announced at the beginning of August that he was coming in three weeks’ time, the logistics surrounding this and the communications and liaison with businesses, that should all have been squared off three months ago.”

Dublin Chamber of Commerce spokesman Graeme McQueen said it had been a “tough weekend” for businesses. “This should have been a bumper weekend for retailers with kids going back to school, but it will have been even harder for the non-retail sector – cafes and restaurants – because the loss of business over those two days can’t be recovered.” The level of traffic restriction was “a little bit over the top” but the lack of information made the situation worse.

“Businesses were a bit of an afterthought, and the lack of information for customers meant they either left Dublin, or stayed put in their houses. This could have been a real festival event, and hopefully lessons will be learned for future events.”

 

Good weather equals good news for many retailers, while others felt a chill

Retail sales grew 3.4% in the second quarter of the year according to the latest report by Retail Ireland

The arrival of June’s heatwave “a good news story” for certain retail categories, such as grocery, DIY and hardware. But, for some retailers, the heat led to a decline in footfall as consumers were more inclined to headed to the park or the beach rather than the shops.

Supermarkets and convenience stores were some of the biggest winners, with the volume of sales up 5.5% in the second quarter compared to the same period in 2017. The good weather boosted the purchase of treats and “little and often” shopping and increase demand for barbecues, garden furniture and ice-cream, but hot weather also put people off shopping,

The Fifa World Cup, while not as lucrative as it might have been if Ireland had qualified, also contributed to strong sales of alcohol, soft drinks and party food sales in June, said Retail Ireland, a Ibec representative group for the retail industry.

Strong demand for gardening products, outdoor furniture and barbecue products benefitted DIY and hardware stores, which saw sales volumes rocket 10.2% year-on-year in the second quarter.

According to Retail Ireland, it was a “solid” quarter for Irish pharmacies, with the weather driving strong demand for hay fever treatments and suncare products. However, beauty sales slowed for the same reason.

“While many retail categories have been boosted by the long dry spell, other sectors such as department stores, fashion, footwear and hairdressing have reported lower than normal footfall and declining sales in the period,” said Retail Ireland director Thomas Burke. Cinema tickets, homewares and sales of electrical items and computers were also negatively affected, he added.

Women’s clothing sales were hurt by both lower footfall in June and consistently cold weather in April and May, the industry group said. Despite this, department stores have still managed a 4.1% rise in the volume of sales year-on-year, while fashion, footwear and textiles saw the volume of sales rise 2.

Stores in the wider books, newspapers and stationery business recorded a 5.9 per cent lift in sales volumes in the second quarter compared to the same quarter in 2017, with the books market also performing well.

Barry Whelan Excel Recruitment

7 Things To Think About Before You Leave Your Job

With unemployment at near perfect and companies crying out for great talent, more people than ever are on the move and wondering if the grass may be greener somewhere new. Barry Whelan, CEO of Excel Recruitment takes you through the things you need to think about before you make a move

In Excel Recruitment, we see a lot of people come to us desperate for a move or eager to make a change, go through the often long recruitment process, only to stay with their current employer. From salary to progression opportunities to just plain hating their boss there are many reasons people start looking for their next job. But before you request your p45, make sure you’re clear on the following points-

  1. Know your reasons

Assess why you want to make a move and figure out whether they can be fixed by less drastic measures than moving jobs. Want more responsibility or a salary increase? Ask for it. Feeling overworked or overwhelmed? Discuss the situation with your manager, assess your time management or drop something from your workload. What might seem like an overwhelming problem might actually have a simple fix that could save you time and effort doing up your CV and attending interviews.

  1. Know your goals

Similar to the first point, make a list of what you want, why you want it and why you can’t get it with your current employer. Then divide these into absolute necessities and points that are less important to you. By setting these out before you start looking for a job, you’re far less likely to waste your own time or make a rash decision and end up in another job that’s not right for you.

  1. Know your plan

Never leave a job without a job is advice our consultants dish out a lot, but for a good reason. Leaving a job suddenly or without a job to go to can look like an impulsive decision and gaps in your CV can be difficult to explain at interviews.

If you are planning on taking time off between roles or taking redundancy, make sure you’ve done the maths on how long you can afford to live without a regular salary and make sure you have a deadline for when you are going to start jo hunting again- the last thing you want is to wait too long and feel pressured to take the first job offer that comes along.

  1. Know your industry

Researching your industry, the current market and your competitor’s businesses will give you greater insight into what your next move should be and where you see yourself. It’s also a good habit to get into for when you eventually start attending interviews. You will be prepared and able to show that your research has been done. This has the added bonus of giving you a lot more confidence when selling yourself to the interviewer.

  1. Know your worth

In the same vein, knowing where your salary sits within the market is vitally important in order to ensure your applying for the right jobs and pitching yourself at the right level to prospective future employers. Research salary surveys for your industry or look at the salaries advertised on job ads looking for your level of experience to see what they’re offering. Again, do the maths to figure out whether you’re willing to take a drop in salary for your dream job or whether you’ll only consider a move for a boost to your pay packet.

  1. Know your benefits

Assess your current situation and ask yourself what you have to gain, and what you could potentially lose from your current benefits package. Does your current employer let you leave early on Wednesday for yoga class? Do you have extra holiday days built up over years of service that a new company may not match? Ask yourself the same questions about sick leave, pension, etc. and ensure you know what you want to gain, what you can’t live without and what you don’t mind losing for the right role.

  1. Know what works for you

Similarly to the above point about knowing your benefits and what you could stand to lose if you make a move. Factors like location, commute time or working environment are all important parts of overall job satisfaction but can often be forgotten about when you start chasing more money or a bigger company. Before you start sending your CV to companies, ask yourself how much of a pay increase you’d need to be happy giving up your 10-minute commute?

 

Barry Whelan Excel Recruitment

The Benefits of Benefits for Attracting Great Staff

With unemployment at near perfect and retailers large and small struggling to attract and retain good employees, CEO of Excel Recruitment Barry Whelan, discusses how important benefits are for attracting talent.

In 2017, the move from a client-driven job market to a candidate driven job market was completed across all retail sectors. A consistent drop in unemployment coupled with new entrants to the Irish market and a desire for the best talent from Irish retailers drove an unprecedented amount of opportunities across the retail industry. This, along with a return to growth in the wider economy and in particular, the hospitality sector has created a challenging talent environment from which to recruit, with other sectors including retail banking also looking for retailers.

Unemployment currently stands at 6.1% (3.7% Unemployment is ‘Perfect Employment’) so the competition for top talent is fierce and counter-offers are becoming more and more frequent, with employers working hard to keep talented staff

“1/3 of the workforce offered a role, turned it down due to lack of benefits”

While rising salaries are an effective way of both attracting and retaining staff, we’re seeing more and more the importance of benefits. 54% of employees seeking a new job want better pay & benefits while 30% of employees want benefits to increase their loyalty. Savvy employers are looking at the entire package in an effort to ensure retention and a happy, dedicated workforce. Bonuses, employees’ work-life balance and their level of autonomy are key drivers in ensuring staff feel valued and rewarded for their contribution to the business.

Employers are recognising that the decision to leave or stay with an employer is overwhelmingly an emotional decision and are seeking to improve loyalty through benefits. In terms of importance, the big three are most definitely pension, health and holidays. These are followed by flexi-time, flexible working hours, paid maternity/ paternity leave, sick pay scheme, weekend rotation and further education.

So what is coming down the tracks?

The top employee perks for 2017 Glassdoor USA-

IKEA- Paid Paternity for four months

Reebok- On-site gym with Cross fit classes.

Goldman Sachs- Health cover for gender reassignment surgery since 2008

Facebook- Free housing for Interns

Scripps Health- Free pet insurance

Starbucks- Full reimbursement for all workers taking an online BA Degree.

American Express- Parents are given access to a 24-hour lactation consultant, and mothers travelling for business can ship their breast milk home.

Eventbrite- The company offers workers a monthly $60 wellness allowance that can be used on anything from juice cleanses to a gym membership.

Wholefoods Market- 20% staff discount

Gap- Provides free access to the San Francisco Museum of Modern Art to corporate employees.

Swiss RE- Insurance company Swiss Re’s “Own the Way You Work” program encourages employees to embrace flexibility with their schedules and work remotely.

Southwest- Southwest offers all employees and their dependents access to Clear Skies, an employee assistance program that provides confidential counselling, work/life services, and legal consultations.

Genentech- Genentech offers unique on-site amenities, including car washes, haircuts, childcare centre, mobile spa and dentist.

Timberland- Timberland employees can take up to 40 hours of paid time off per year to volunteer.

Microsoft- $800 towards Gym membership

Deloitte- Two paid Sabbaticals

Amazon- Parental Share. Either Parent can take paid leave if one does not receive paid leave from their employer.

In-N-Out- Free Lunch

Aislinn Lea, Head of Fashion & Non-Food, Excel Recruitment

How to do a great SWOT analysis

A SWOT (strengths, weaknesses, opportunities and threats) analysis is a common and important part of job interviews for retail management but often interviewees can struggle with where to start or what to say. Our Head of Fashion and Non- Food Retail Aislinn Lea tells us everything we need to know..

A strong SWOT is a fantastic way of showcasing your experience and skills, along with your commercial awareness and can put you miles ahead of the other candidates. We’ve broken down each section of the SWOT and (provided handy templates) in detail here, but this blog will take you through how to approach you SWOT, what to look out for and what to avoid.

Where do I start?

Preparation is key with a SWOT. Your consultant will be able to tell you what the interviewer will be expecting- how to present it, the depth of analysis required and what store (if there’s more than one) you should conduct your analysis in. It may be a good idea to visit the store two or three times during different trading times to get a full picture of the store’s commercial day. Look at both the store and the surrounding area and visit other stores in the area, to see the differences. Make detailed notes about what you see/ don’t see and if possible, take pictures.

What am I looking for?

Break your SWOT down into the four sections and deal with each separately. For the Strengths section, break it down into store strengths and company strength and then again by customer service, visual merchandising and overall store standards. Deal with the weaknesses section in the same way. This ensures you don’t miss anything and show the interviewer you notice details while being a well-rounded manager.

The opportunities and threats section of your SWOT will come directly from your observations on both the store’s weaknesses and the surrounding area. Split this into short-term, medium-term and long-term objectives with clear, actionable suggestions on how to address/ capitalise on them. The most important thing is to keep store-specific and makes reference to the location, customer profile, local market and nearby competitors that affect the individual store directly.

How do I present it?

This will depend on the company you’re interviewing with, some will want an elaborate and engaging Powerpoint while others will simply want you to have a few notes that you then talk through verbally. Either way, use bullet points rather than chunks of text and elaborate on them at the interview. Have an action plan to hand, discussing how you would tackle what you’ve highlighted in your SWOT and a timeline.

What should I not do?

Don’t be too generic in your analysis and ensure the points you are making are specific to the store and the role you’re interviewing for. Your SWOT analysis should be conducted with the individual store’s location, demographics, resources etc. at the forefront of your mind.

Another thing I often see is people try so hard to not be overly-critical that they end up leaving out key issues. While it’s important not to be too harsh about the business or the brand, if there is an issue the interviewer is aware of but you don’t discuss, they’ll presume you missed it in your observations.

Want a Career as a Merchandise Planner?

Thinking about a Career as a Merchandise Planner? Excel’s Retail Head Office Consultant Sarah Hurley takes you through everything you need to know…

Merchandise Planning is a relatively new function within Irish buying offices but is just as exciting, fast-paced and rewarding a career as Retail Buying. Merchandise Planners are high in demand. They have a unique skillset and niche expertise and are rewarded with competitive salaries and benefits, a broad career path and numerous choices and plentiful job opportunities with the biggest retailers.

What is a Merchandise Planner?

Merchandise Planners operate a crucial function within a retail Head Office. They work side by side with Buyers to plan, execute and deliver ranges.

What do they do?

People often explain merchandise planning as getting the right merchandise, in the right place, at the right time, in the right quantities at the right price to maximise sales and to minimise markdown. With the buyer, they will look at past performance and future trends, to predict what items will sell best and plan accordingly.

Right Merchandise – Styles, brands, colours, sizes

Right Place – Which store, depending on their budget and location

Right Time – Having merchandise in stores at the right time in the season i.e. ready for Christmas or ‘Back to School’

Right Quantities – Enough for the stores to make their budgets but not have to markdown stock at the end of the season

The Right Price £££– Those that will attract customers in over the competition yet generate a reasonable return on investment for the retailer i.e. profit

What do you need?

Merchandise Planners are in demand because they have a unique blend of skills-

Analytical skills – enjoy analysing data and using this to identify trends and potential risks and opportunities

Communication skills – Must be able to communicate this data and trends to people and build great relationships with suppliers and in-store teams.

Quick thinking– Retail is incredibly fast-paced and merchandise planners need to be quick thinking to spot trends, evaluate large amounts of data and make sound decisions. Things can change very quickly and there are always deadlines to meet.

Commercial Awareness – you need to understand what is going on in the marketplace, your competitors and be able to spot gaps and opportunities

How do you get started?

Most Merchandise Planners come from either a fashion buying & merchandising course or a business/finance related degree and have a mix of both retail and office based experience. Graduates will start their careers as an Allocator or Assistant Merchandiser and work their way up. Opportunities exist within the fashion and non-fashion retail and open up a broad and varied career path.

retaiil news

Q1 retail sales show full effects of the ‘Beast from the East’

New research into retail sales in the first part the year have revealed the full extent of the disruption caused by March’s ‘Beast from the East’ on the retail industry.

The latest figures from the retail representative group, Retail Excellence Ireland (REI), show that despite the improving economy, like-for-like sales were down 1.2 per cent in March, and a fifth of 1 per cent overall in the first quarter compared to the year previous. This decline comes despite the improving economy and a comparative boost to first-quarter sales by Easter falling in March, compared to April in 1017.

REI’s chief executive, David Fitzsimons, said the bad weather negatively impacted most on the 19 retail sectors examined in its first-quarter Productivity Review, which it produces in association with research firm GfK and Grant Thornton. It collates electronic sales data directly from the tills of retailers. “What is very clear is that the Irish retail industry is in a significant state of flux,” he said.

In terms of specific sectors, garden centres performed the worst, with sales down 15.8% in the first three months of the year when compared to 2017- for obvious weather-related reasons. IT and computing products saw a 17 per cent decline but were saved from a further fall by the early Easter period. IT sales, including computers and tablets, have dropped off hugely. In volume terms they were down 11% and 17 per cent in value terms Jewellery sales were down for all three months in the quarter, as were lingerie, ladieswear and menswear sales.

Among the best performing sectors were health stores (up 4%), small home appliances (up 6%) and furniture and flooring (up 3.6 % over the quarter). Grocery sales were up 1.1% which was “spurred on by Easter trading”, said Mr Fitzsimons. The rate of monthly growth in the sector actually increased in March, which may well have been partly due to bread sales.