Irish Retailers Face Uphill Battle

The rise of discount stores has hit family-owned stores especially hard.

December 26, 2013

DUBLIN, Ireland – Irish retailers, especially those owned by families, have many challenges ahead, including below-cost selling and the increase in the number of discount stores, the Irish Examiner reports.

Irish farmers, too, have reason to be uneasy, as low-cost fruits and vegetables offered at major retailers like Tesco are undermining local pricing by importing cheap produce from abroad. Aldi and Lidl, Tesco and SuperValu have all registered growth, albeit mostly a modest uptick, at the expense of smaller shops. “2013 has been extremely tough and challenging,” conceded Tara Buckley, CEO of the independent grocers association.

The convenience sector also had a less-than-banner year, with numerous newsagents closing up shop. However, with the bigger chains expanding to food-on-the-go, there may be hope for a resurgence in this market next year.

On the horizon is how new government regulations about tobacco will impact convenience stores and other small shops that sell cigarettes. Plans for new licenses for retailers selling tobacco will cost more than in years’ past. Retailers are also concerned about possible regulations that would mean creating separate areas, including a different entrance, for alcohol sales.

Also, a possible minimum wage increase might be on the horizon, which could spell fewer jobs at convenience stores. The convenience sector wants the government to make more strides in its fight against gasoline counterfeiters and the illegal cigarette trade.

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