RGDATA has also called on the Government to be “more balanced” in its appraisal of competition within the retail sector, claiming that the state has done little to ease the challenges faced by small retail businesses to date.
Meanwhile, the National Consumer Agency stands accused of being a “cheerleader for global multiples” by the retailers’ group.
Director-general Tara Buckley, writing in today’s Irish Examiner, says that among the challenges faced by independent operators is a high level of discounting, with the larger multiples attracting custom through special offers.
“In some cases this has involved irresponsible discounting of alcohol and a heavy promotion of these discounts through high profile advertising in the national press,” says Ms Buckley.
Describing 2008 as “exceptionally challenging” for independent retailers, the RGDATA chief says that members have also been hit with higher prices from suppliers and tougher credit terms from the banks, along with higher VAT rates, employment costs and rates.
She hits out at the Government and state agencies for doing little to help local shops and outlets.
“State agencies like the NCA and the Competition Authority appear to have a fixed view that unless a business is foreign-owned it is incapable of giving consumers value, choice and convenience.”
The Government must avoid the introduction of any new measures that would make business more difficult for small service providers, according to RGDATA.
The number of supermarket around the country has increased 35% in the past 18 months, with independent retailers accounting for just 14% of the total market. Their boom has come at the expense of the independent retailer, whose numbers have decreased by more than 65% in the past 30 years.
Source: Stephen Rogers, The Irish Examiner, 29/12/2008
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