Retailers deal with aftermath of Storm Emma

As the thaw continues, retailers around the country are counting the cost of the last week’s weather disruption where heavy snowfall and the Red Weather Alerts saw many forced to close their doors from Wednesday. Some businesses have still not re-opened in the aftermath of the severe weather.

Lorraine Higgins, deputy chief executive of Retail Excellence Ireland, said different sectors experienced varying degrees of disruption. “The focus on grocery purchases meant that purchases in other sectors were postponed. Huge losses were incurred as a consequence of being closed for five days. It’s the loss of sales, employee costs and general clean-up costs that they are facing now,” she explained. Ms Higgins said retailers are now trying to encourage footfall back into their stores after several days of closures and some quiet days over the weekend. “Retailers who had an e-commerce capacity were advertising online quite heavily. It’s been a difficult time for many sectors so I’d be encouraging people to go out and support retailers with a physical store presence and divert some of the spend from businesses overseas to retailers here.”

According to Miss Higgins, the big winners from spending in the online sphere are overseas retailers that do not have a physical presence here, with an estimated two-thirds of spending online by Irish consumers leaving the country. “Many discerning retailers with an online capacity here had sales of 15-20% to encourage people to spend online over the past few days. But that comes at the expense of heavy advertising,” she said. “What this points to is the need for retailers to have ‘omnichannel strategies.’ They’re becoming increasingly important in light of the frequency of recent weather events,” Lorraine Higgins concluded.

The heavy snow presented numerous challenges for grocery stores, which saw huge demand for fresh food in supermarkets over the weekend. Retail group BWG Foods has revealed a Brennan’s Sliced Pan was the number one item in demand over the last few days, followed by litres of milk, 6 packs of eggs, firelighters and wine.

Retailers want online market places to pay VAT and duties

The retail representative group, Retail Excellence Ireland, have called for legislation to make online market-places liable to collect VAT and duties.

The group say the proposed measure will help to counteract the level of retail spend leaving the country. Retail Excellence Ireland is calling for legislation similar to the UK’s Finance Act which was introduced in December. Under the Act, online market-places were made responsible for collecting VAT and duties.

“We think that we should expect no less here in Ireland, because it’s not enough in budgets to just increase consumer spend and think that takes care of retail,” said Lorraine Higgins, Deputy Chief Executive of Retail Excellence Ireland, “We need retail-focused solutions for the future.”

Ms Higgins, Deputy Chief Executive at Retail Excellence Ireland, said two-thirds of online spend is leaving Ireland, and retailers here are aggrieved by competition from online retailers based outside the state who do not have to pay duties. “First and foremost we need to look at the online market-places, and the fact that they don’t have any duty on them,” she said. “So what we’d like to see is robust legislation introduced in the upcoming budget that would make online marketplaces jointly and separately liable to collect VAT and duties.”

She said retailers “were investing heavily in marketing campaigns to try and offset the type of cheap imports that were coming from websites, predominantly outside of the EU” She said the industry is seeing is an elongation of the shopping period at Christmas time, and a lot of retailers have stepped up to the mark and offered bargains, deductions and discounts in November, in order to try and encourage people into stores, to offset the challenges coming from websites outside of Ireland.

black friday

Black Friday boosts retail sales by 2.6% in November

The volume of retail sales increased by 2.6% in November on a monthly basis, with retail sales up 6.8% on an annual basis, according to the latest figures released by the Central Statistics Office. The figures, which were stronger than expected, come on the back of strong Black Friday sales during the month. Retailers reported their strongest ever ‘Black Friday’ and ‘Cyber Monday’ sales on the 24th and 27th of the month.

Electrical goods performed particularly strong in the period with sales seeing a 14.5% increase from the previous month. Department stores sales increased by 6.7% while “other” retail sales – which include the likes of carpets, toys, flowers, plants, pets animals and pet food – increased by 5.7%.

There is some debate amongst analysts as to whether the U.S inspired Black Friday and Cyber Monday promotional events actually increase sales and encourage shoppers to make additional purchases or just act as an incentive for shoppers to do their Christmas shopping early. “The question remains whether spending has merely been brought forward from the traditional December season to November,” Davy analyst David McNamara said, noting industry surveys suggested that December spending was disappointing for Irish retailers.According to Retail Ireland, early indications show that December sales will be on par with 2016. However, he acknowledged that Irish consumer spending “will be higher once again in Q4 as a recovering labour market and wage growth drive demand”.

Merrion economist Alan McQuaid said that while retail sales remain erratic on a monthly basis and are still swinging back and forth, the underlying trend is positive. “While most attention has been on new car sales in the past couple of years, which were lower in 2017 than 2016, personal spending in other areas has picked up over the same period and is becoming more broad-based,” the economist noted.

Bumper ‘Cyber Week’ for retailers says Retail Excellence Ireland

Pharmacy, cosmetics, electronics, technology and fashion have been the biggest draws for Irish shoppers so far this Christmas season. A report conducted by retail representative body Retail Excellence Ireland show a sales lift of up to 60% year-on-year during the final week of November. This week, dubbed ‘Cyber Week’ has fast become a crucial time for retailers as it sees online retail figures spike in time for Christmas. It stems originally from US retailers tempting shoppers by offering bargains around the American Thanksgiving holiday. Events such as Cyber Week have prompted many retailers to adapt their sales strategy with a view to elongating the Christmas shopping period.

Lorraine Higgins, Deputy Chief Executive of Retail Excellence Ireland, said the survey was representative of all the retail sectors in Ireland and the fact that retailers were reporting a 20-60% increase in sales is a very positive story. According to Higgins, the benefits to the Exchequer are also obvious as well and she highlights how Budget 2018 resulted in many with increased disposable income, which is impacting positively on consumer sentiment. A record number of people are also back at work and so will up their spending.

But she added that the retail sector is not without its challenges, and the amount of spending that is “leaking out” of the country on a daily basis is one of these challenges. Two-thirds of consumers’ online spend is going out of the country and further supports for retailers to take on the European online stage are needed. She said that Enterprise Ireland currently supports manufacturing and processing companies, and now it is time the agency also supported the retail industry.

Ms Higgins said that online sales is an increasingly important part of retailers’ business and its growth cannot be underestimated. She said that it will become up to 30% of retailers’ business and so is too big to ignore. There are difficulties due to poor broadband services in some areas of the country, but Ms Higgins said that €602 billion is being spent by European consumers online and Irish retailers have to get a slice of that ever-increasing pie. According to Department of Communications figures, 84% of Irish consumers by 2020 will buy “frequently” online, she added.

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

Excel’s Aislinn Lea- Retail is a career, not just a job

As the CAO and college places hit headlines again, head of Fashion & Non- Food Recruitment Aislinn Lea reflects on how retail can be overlooked as a career choice and why this is a mistake…

This past week has been a stressful time for many young people since learning their Leaving Cert results last Wednesday, followed by the anxious wait to see if they received a college place in Monday’s CAO offers. These 17/18/19-year-old will have many huge decisions to make in the next few days about the path they choose. Often in all the talk of opportunities in STEM subjects and the rise and fall of points, many people, regardless of age, overlook retail as an exciting and rewarding career path.

When I began my career in retail, I had no idea it would provide me with the opportunities and experiences that it has, eventually leading me to recruitment, working every day with fantastic clients and candidates, meeting new people and filling new and different roles every week. I couldn’t recommend retail more highly as an industry or a career path.

Progressive Careers

Retail Management is one of the most progressive careers in the market, an industry where the opportunities and careers available are ever-changing and as a result exciting, challenging and rewarding. The doors that are open to an enthusiastic candidate pursuing a career in retail are endless and include Management, Head Office, Buying, HR, Marketing, E-Tailing, Visual Management, the list goes on.

Not only that, but the vastness, variety and pace of the industry can provide anybody willing to work hard and learn with countless opportunities to meet new people, try new things, and see new places. Retail is an extremely fast-paced industry and is constantly innovating and evolving which provides anybody who wants to embrace new ideas and technologies, the opportunity to really make their mark and add real value to their employer, and their CV.

Those who see retail as a career and not just a job can open themselves up to a whole world of learning. There are many engaging, challenging and ever developing facets of the industry, both technically and commercially, so not only are there valuable life-skills to be gained there is also a huge depth of knowledge to be learned and countless career paths to potentially follow.

Inclusive Industry

Retail as an industry has become more savvy in terms of developing talent and employers are willing to invest more and more into their people through training, learning and development. There is a wealth of fantastic degrees, courses and Graduate Programmes available in retail, including any of the specialisms mentioned above.

Retail is a huge industry and is Ireland’s largest private-sector employer, employing over 282,000 workers across the country.An industry of this scale offers a wide range of opportunities and possibilities for all types of individuals and personalities from those with a natural gift for sales and customer engagement to others with a keen interest in data, tech, marketing or visuals

 

Retail News Roundup

Hotel Chocolat to open first Irish café

British chocolatier chain Hotel Chocolat has announced its plans to open its first ever Irish café. The brand will open an Irish branch in Dundrum Shop will be opening its first ever Irish café this October. According to Retail Times, the new venue will occupy a 102 square metre space in Dublin’s Dundrum shopping centre and will be offering customers a number of new cocoa-based beverages as well as the firm’s full range of exclusive chocolates. Commenting on the announcement, Simon Betty, director of retail for Ireland at the company that owns Dundrum shopping centre, Hammerson, asserted, “Hotel Chocolat is a perfect fit for Dundrum, where it will trade alongside other premium brands…Since taking ownership of Dundrum last year, we have worked to leverage our relationships with domestic and international brands in order to ensure an exciting and fresh retail mix, and this latest debut is a testament to the success of that strategy.”

Arnotts to get further €4m refresh

The Selfridges Group will invest €4m of fresh capital into Arnotts, the iconic Dublin department store. The capital will be used to enhance both the group’s store as well as its online presence and IT capabilities. There has already been significant work done to the store, which will continue over the next 12 to 24 months. The store has redesigned its interior layout, with its famous ‘Shoe Garden’ moving from the ground floor to the first in order to bring women’s footwear and clothing together. The store’s accessories and beauty halls will be refurbished and popular fashion brand Michael Kors will be added to the store’s offering. The store is working on an overhaul of its website, Arnotts.com, which will soon be relaunched following a substantial investment as well as a redesign.

Release date announced for Heidi Klum’s fashion line with Lidl

Supermodel Heidi Klum’s much-anticipated clothing line with supermarket Lidl has been given a release date. The line will be officially launched at New York Fashion Week on September 7th and will be available in 10,000 stores worldwide from September 21st. The collection will feature clothing, along with shoes and accessories. Prices said to be starting from €5.99 with Klum saying she wanted to “create fashion with a wow effect that is easy to combine and makes every woman look fantastic – and all at an unbeatable price.” The new collection is titled “Esmara by Heidi Klum: Heidi and the City” and both Klum and Lidl have shared teasers of the collection ahead of its fashion week launch.

Manual Handling

Why Manual Handling is a Must

Manual Handling is a key part of any workplace but particularly within retail where heavy lifting and lugging can be an everyday occurrence. If not trained and applied properly, poor manual handling can result in serious injuries for employees and massive costs for employers.

Not only is it best practice but manual handling is a legal obligation. Employers must ensure all their staff (regardless of role) have received manual handling training along with refresher course every three years or if there is a major change in the working environment.

According to the Health and Safety Authority (HSA) over one-third of accidents that take place in Irish workplaces are as a result of incorrect manual handling procedures. The large majority of these accidents result in back injuries, followed by hands, arms and feet. Many of these injuries can be chronic or long-term resulting in further suffering for employees and increased financial strain on employers. Correct Manual Handling training and procedures can go a long way to reducing or avoiding these accidents.

Employees

Manual Handling instils good habits in employees, ensuring they know the principles of safe lifting and the proper technique to use when lifting a wide variety of loads. It equips participants with the skills and know-how to assess whether a load is safe to carry. Correct manual handling training also educates participants about the spine and how easily back injuries can happen which is helpful not only in their working lives but also for their personal well-being.

Employers

There has been significant media coverage in recent years about Ireland’s supposed compensation culture and the rising insurance costs for businesses as a result. Businesses need to be wary

Insurance costs for retailers have been steadily increasing in recent years. Along with upcoming minimum wage increases and spiralling commercial rates, businesses can’t afford the extra financial burden of rising insurance, particularly when they can be avoided easily by employing proper Manual Handling training and procedures.

It is important that employers ensure all employees training is up to date and recorded. For employers to have fulfilled their legal requirement, employees must have completed training and be able to demonstrate a complete understating of safe lifting principles.

Excel Recruitment operate Futureproof training which offers certified Manual Handling training. To learn more about individual or group training email info@futureprooftraining.ie or call (01)8717 676

Nikki Murran, Excel Recruitment's Director of Grocery Retail Recruitment

Excel’s Nikki Murran- ‘Booze curtains’ too big a burden for retailers

The Public Health (Alcohol) Bill has been a source of concern and unease for the retailers I meet and speak with every day, since its introduction to the Daíl in 2015. It has been an ongoing topic in the industry so I wanted to share my views.

It hit headlines again last week when Taoiseach Leo Varadkar reaffirmed his commitment to it, saying he is determined for the controversial bill (currently sitting in the Seanad) to become law before the end of the year. The Bill will see the introduction of minimum unit pricing on alcohol and will require alcohol to be separated from other products in shops behind so-called ‘booze curtains’.

At Excel Recruitment, we work with retailers across the country of all different sizes. All are operated by people who work daily to make a positive impact on their customers and wider communities. All are vitally important within their communities, not only because of their products but also through providing jobs, sponsoring community events and keeping town centres, large and small, alive and buzzing. Forcing these businesses to implement ‘booze curtains’ will place even more of a burden on people who are already battling the unknowns of Brexit as well as the ever increasing commercial rates.

Retailers are not arguing against a policy that improves public health, the opposition comes from the very real concern that these measures will not result in any actual improvements in the drinking behaviours of the small few at which they are targeted, but instead will force unreasonable costs and time investments on already overburdened retailers across the country.

The cost of these booze curtains’ may be the breaking point for some small or independent stores – and for something that holds no value to them or their customer. It is likely to move the alcohol sales across the country to the larger multinationals and Off-Licence stores – leaving the convenience sector with a drop in sales, a bill to foot for the ‘curtains’ and a hefty off-licence fee still to pay annually.

All the retailers we come into contact with, treat their responsibility when it comes to the sale of alcohol with the utmost seriousness. The solution to Ireland’s alcohol issue is not placing further pressure on people trying to earn a living and provide employment but in education from a young age and in encouraging a change in attitudes.

Retail is the country’s largest private sector employer and employs people in every town and village in Ireland. These jobs must be protected and retailers need to be given the support and resources to sustain, build and grow their businesses not left to fend for themselves against confused and confusing legislation.

 

 

Retail Excellence Ireland call for Government to introduce policies to protect retailers from Brexit

Retail Excellence Ireland call for Government to introduce policies to protect retailers from Brexit, including 3% cut in VAT

Retail Excellence Ireland has called on the Government to cut VAT by 3% in the next Budget. The retail lobby group, has said Ireland’s ‘regressive’ VAT rate of 23% should be reduced to safeguard Irish retailers from the effects of Brexit. The lobby group said the 23% rate should be cut in “in one fell swoop”. Retail Excellence have previously called for a reduction in the charge but in their latest submission say any incremental reduction would have minimal effect on consumer spending.

The submission from the group including a number of measures the group feel are necessary for the government to introducing in an effort to help retailers including-

  • Immediate and emergency legislation to immediately tackle rising insurance costs
  • The introduction of a business focused bank, similar to the UK’s Metro Bank. Half of Metro Bank’s balance sheet lending is targeted at SMEs.
  • Training and financial support for businesses to set up and grow their online presence and eCommerce capabilities
  • Increased Garda presence and resources to tackle retail crime
  • A renewed focus and energy on regional town and village renewal schemes
  • Prioritise infrastructural development to encourage more FDI

The group also call on the Government to intervene on the issue of spiralling rents faced by retailers with the abolition of all upward only rent review clauses to allow all commercial tenants to pay market rents. The group say this would support many retailers who are suffering penal and unsustainable rents due to upward only leases.

In their submission, Retail Ireland Excellence pointed to the importance of retail to the Irish economy. Irish retailers operate some 45,000 businesses and directly employ some 282,000 employees.

“As a direct consequence of retail activity, €5.7 billion is contributed to the exchequer on an annual basis. Therefore, the significant of retail must not be underestimated,” said Lorraine Higgins, a spokeswoman for the organisation.

Lloyds Pharmacy to create 500 new Retail Jobs

Lloyds Pharmacy have plan for major Irish expansion as they look set to open 60 new Retail Stores and create 500 new jobs. It is believed the new plans will be rolled out over a 3 year period and will increase their entire Irish workforce to 1,500. It will mean a growth of 91 stores to 150.

The pharmacy chain is currently the largest in Ireland, will also invest €2 million in a new patient services throughout existing outlets. Last year, Lloyds added 14 new outlets in what they described as ‘very positive’ sales. Management at the pharmacy has signalled its intent to expand into new communities, consolidating its dominant market position. Lloyds has already set about identifying new sites.

Source: http://www.irishtimes.com/business/retail-and-services/lloyds-pharmacy-to-create-500-new-jobs-1.2245076