Retail sector left in lurch by “out-of-touch” Government” – ISME

“It is unbelievable that the Government can ‘stick its head in the sand’ and let the largest sector in the economy slowly grind to a halt, with 44,000 - mainly small businesses - in danger of closure and a further 240,000 jobs in jeopardy” - Mark Fielding.

ISME, the Irish Small & Medium Enterprises Association, has demanded a better deal for indigenous Irish retailers from Government “which has adopted an ‘ostrich stance’ on retail policy, hoping that the market will ‘right itself’, without state intervention”.

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The latest CSO figures confirm that retail sales continue in a distressed state while shops close and jobs are lost.

Bar sales, for example, fell 4.6% in volume and 2.0% in value in the year to April 2013. They fell 0.4% in volume and 0.3% in value on the previous month, March.
The Association repeated its demand for a Retail Strategy Group to formulate a coherent survival/revival plan for the sector.

“The April sales figures make worrying reading, with little sign of even a modest upturn,” stated ISME whose Chief Executive Mark Fielding commented, “The headline figures of volume and value continue to disappoint while inequitable rents, rates and licences create a deadly pincer movement. In addition the SME retail sector is crippled from the effects of black market on the one hand and unfair trading practices from multiples on the other, forcing many smaller stores to close.
 
“Retailers are investing in their shops by way of new fit-outs, equipment and staff-training ahead of any increase in consumer spending. Government must play its part in stimulating the economy to ignite increased demand. The way to kick-start the economy, from a retail stance, is to curtail utility costs, rates and banking charges while investing steadily in infrastructure without increasing the tax burden.”
 
The Association called for:         

Immediate establishment of the long awaited Retail Strategy Group.
Introduction of a Code of Practice, with an ombudsman for the sector.
A review of the effect of the abolition of the Groceries Order on prices.
Government action on commercial rates, unrealistic rents, licences and uncompetitive labour costs.
Bank credit availability for SMEs.
 
“It is unbelievable that the Government can ‘stick its head in the sand’ and let the largest sector in the economy slowly grind to a halt, with 44,000 – mainly small businesses – in danger of closure and a further 240,000 jobs in jeopardy,” added Mark Fielding, “A Retail Strategy Group must be put in place to assist this out-of-touch Government.”

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