Anything but a silly season
Fionnuala Carolan on why the abundance of potentially industry-changing news has rendered summer anything but the silly season within the retail sector
Print16 August 2010
It’s hard to believe that the summer is officially over and what a summer it was for the retail trade. With Anglo taking control of
Arnott’s and its 1,000 employees waiting to see what their future holds; the Eurostat Survey prompting much debate on food prices; Tesco announcing nearly 750 new jobs around the country yet unemployment still rising; Theo Albrecht, founder of Aldi passing away and the announcement that Sir Terry Leahy will leave Tesco next year, this silly season was far from quiet or silly for that matter.
As the season changes, the next big milestone on the calendar is, dare I say it, Christmas. Everyone is hoping that this Christmas will change the fortunes of all in the trade and we have our fingers crossed that it will prove fruitful. Looking at the industry as a whole, there are certainly things to be positive about. Barry Group has announced pre-tax profits of €3 million and plans for expansion in its Carry Out and Buy Lo franchises, landlords are said to be negotiating a little more on retail rents and two of the major retailers are making plans to expand their online businesses.
The expansion of online shopping (page 20) details the growth that is taking place within the grocery sector. A company that is not online would want to have a good reason not to be. Both Musgrave and Dunnes Stores are said to be on the verge of launching their online models, bringing a whole new level of competitiveness to the market. Now for the first time, consumers should be able to compare prices of goods in the main four Irish supermarkets on a daily basis with the click of a mouse. With Asda also said to be carrying out home-delivery trials in the south, consumers will have a huge amount of choice if all these plans come to fruition. It will certainly crank up competition within the sector.
Also in this issue, Dan White speaks about his predictions for the future of Superquinn and how he feels the company needs to re-evaluate its direction. He makes the point that Superquinn seems to be in a sort of limbo since its takeover by Select Retail Holdings five years ago. Due to the downturn in the economy, the company has had to adjust its offering and is now neither one thing nor the other. Joe Comerford, a retail consultant, rebukes these suggestions, believing that Superquinn is currently on the right track and is starting to claw back market share through its very strong buying department headed up by Carl Pratt. A new store is due to open shortly in Heuston South Quarter so the company certainly seems to be pressing ahead with its plans for expansion in the short term yet the fact this its properties have been written down by €180 million could interfere with future plans.
And finally, this month should be a healthy one for back-to-school products. Our feature on page 44 gives a run-down of the most important products to stock for the next month and throughout the school period. Running in-store promotions around these products could result in year-round loyalty so make sure your customers are made aware of what’s on offer.
Fionnuala Carolan
Editor
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