Good weather equals good news for many retailers, while others felt a chill

Retail sales grew 3.4% in the second quarter of the year according to the latest report by Retail Ireland

The arrival of June’s heatwave “a good news story” for certain retail categories, such as grocery, DIY and hardware. But, for some retailers, the heat led to a decline in footfall as consumers were more inclined to headed to the park or the beach rather than the shops.

Supermarkets and convenience stores were some of the biggest winners, with the volume of sales up 5.5% in the second quarter compared to the same period in 2017. The good weather boosted the purchase of treats and “little and often” shopping and increase demand for barbecues, garden furniture and ice-cream, but hot weather also put people off shopping,

The Fifa World Cup, while not as lucrative as it might have been if Ireland had qualified, also contributed to strong sales of alcohol, soft drinks and party food sales in June, said Retail Ireland, a Ibec representative group for the retail industry.

Strong demand for gardening products, outdoor furniture and barbecue products benefitted DIY and hardware stores, which saw sales volumes rocket 10.2% year-on-year in the second quarter.

According to Retail Ireland, it was a “solid” quarter for Irish pharmacies, with the weather driving strong demand for hay fever treatments and suncare products. However, beauty sales slowed for the same reason.

“While many retail categories have been boosted by the long dry spell, other sectors such as department stores, fashion, footwear and hairdressing have reported lower than normal footfall and declining sales in the period,” said Retail Ireland director Thomas Burke. Cinema tickets, homewares and sales of electrical items and computers were also negatively affected, he added.

Women’s clothing sales were hurt by both lower footfall in June and consistently cold weather in April and May, the industry group said. Despite this, department stores have still managed a 4.1% rise in the volume of sales year-on-year, while fashion, footwear and textiles saw the volume of sales rise 2.

Stores in the wider books, newspapers and stationery business recorded a 5.9 per cent lift in sales volumes in the second quarter compared to the same quarter in 2017, with the books market also performing well.

retailers

Retailers say €200m in local authority rates lost due to inefficient collection

Retailers have called for a complete reform of the system local authorities use to collect rates.

According to Retail Ireland, the Ibec group representing retailers, more than €200 million is lost each year in local authority rates that go uncollected. The group say that a lack of consistency and clarity in how the charges are applied and collected is impacting Irish retail competitiveness and negatively affecting town centre renewal.

The group today launched a new policy paper ‘Tackling the Rates Burden’ in which they say there are ‘serious deficiencies’ in the current system governing how local authority rates are levied and collected, resulting in over €200 million in uncollected rates each year.

According to the policy paper, under the current system retailers who operate on a nationwide basis have to deal with 31 local authorities, most of which have radically different ways of operating. This makes business planning on a national level difficult and deters investment.

Retailers are also calling for a disassociation between rents and rates. Retailer say that linking the two charges has led to many retailers paying disproportionate costs as a result of upward-only rent reviews becoming increasingly common.

Retail Ireland have proposed that local and national government make the following changes in policy-

  1. Introduce a centralised collection process
  2. Stop linking rents to rates
  3. Reform the revaluation system
  4. Progress on local government reform
  5. Increase local property tax intake

Retail Ireland Director Thomas Burke said: “Local authority rates make up a significant portion of total input costs for Irish retailers. The current system is opaque, inconsistent, inefficient and expensive to operate.”

Mr Burke also said “Retailers have seen a significant increase in rates in recent years with very little return in terms of new service provision. This is of particular concern as retailers feel the pressure of rising costs across a range of other inputs such as labour, rent and utilities.”

 

Dunnes are Ireland’s second favourite Supermarket

Grocery Market Share Figures for 12 weeks ending September 11th 2016
Grocery Market Share Figures for 12 weeks ending September 11th 2016

Kantar Worldwide have released figures for the 12 weeks ending 11th September 2016. Dunnes Stores have seen notable growth and are now Ireland’s second favourite Supermarket, a feat they share with Tesco as they both lie in joint second. SuperValu remain top and command a current market share of 22.4%, the third consecutive month where growth has been above 3% for the Irish retailer.

  • Dunnes Stores increased sales by 6.3% to draw level with Tesco.
  • Dunnes and Tesco now account for 21.6% each of the Irish grocery market.
  • Sales within Grocery continue to grow, up 3.7% year on year during the past 12 weeks.
  • Lidl’s market share now stands at 11.7% – in line with last year – while sales increased by 4.5%
  • Sales growth for Aldi continues to improve, with market share increasing from 11.2% last year to 11.4%.

Director of Kantar Worldwide David Berry expanded on the figures saying “Larger trips have boosted sales for Dunnes, with the average spend increasing by €2.50 to €37.20 in the latest quarter, compared with the same time last year. Dunnes has successfully tempted shoppers to add more expensive items to their baskets, with the average price per item rising to €2.05 – an increase of 12% on last year.”

All figures from Kantar Worldwide.

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

My Journey Into Recruitment – Nikki Murran

What titles did you hold while working in Retail?

I started my career working in our family Spar stores, so my first title was probably floor sweeper or shelf packer! I worked up to Junior Manager and Store Manager there and then moved to Lidl as a Trainee District Manager and then spent 5 years with Lidl as a Sales Operation Manager.

 

How does it compare going from working in Retail to a Recruitment environment?

It actually has so many similarities that I was very surprised when I made the move. Both are very customer focused, fast paced and target driven! Obviously the main difference for me was the move from being out on the road to being stationed in an office! But between client visits, head hunting trips and away recruitment days I’ve never felt too stagnant! I used to miss the buzz of a shop floor on a busy morning, getting the store prepared for opening but that has been replaced by the buzz of placing great candidates in great roles!!

 

What was your favourite part about working in retail?

I loved my staff. I loved developing them and recognising talent and growing it. Another one of my favourite things in retail was achieving KPIs across my stores and growing sales by focusing on trends, standards and displays. I also loved the customers!

 

What is your favourite aspect of working in Recruitment?

Well I love my team! I love seeing how much they have grown since joining us. I love dealing with clients and still getting those snapshots into the retail world and see how the market is moving and changing all the time. And obviously I really enjoying identifying talent and bringing that talent to our clients knowing they will make a real difference to their bottom line.

 

Are you seeing any difference in applications over the last 12 months?

I think the applications are pretty consistent this year versus last year. But I have noticed a lot more counter offers coming back to candidates – something that had been pretty non-existent in the last few years!

 

What do you favour most when a CV comes into your inbox? What must haves does a candidate need in order to be considered?

This is a difficult one as a CV really only tells half the tale. I do look for strong brands, progression and longevity in each role.

What has been your most favoured candidate placement and why?

My very first one of course! He was a Baker from New Zealand who had just arrived in Ireland. Some of the most rewarding ones have been where clients have asked me to garner them really top talent and I was able to do this but also being able to secure a role for a candidate who had been out of employment for a while.

 

A young sales assistant aspires to be a Retail Area Manager Describe what they should do in 4 sentences?

Ask questions – Lot and lots of questions! I never stop doing this. No matter how long in a role or company you can always learn more.

Educate yourself – if you’re not in a position to go get a degree or qualification, then read everything you can about the market and industry – keep yourself up to date – again this is something I always do!

Be the master of your own destiny! Don’t wait around for training, go get it, ask for it, do it in your own time, approach your managers, friends, neighbours, relatives in the industry and get as must knowledge as you can.

Be reliable and consistent. Even as you start out as a sales assistant it’s so important to start working on your professional reputation as a hardworking, reliable employee from the very beginning.

Use Excel Recruitment when it’s time for each move! We are the No. 1 Retail Recruitment agency in Ireland and are very good at what we do!

A little more advice than 4 sentences 🙂

Lidl to introduce living wage of €11.50 an hour

Discount grocery retailer Lidl have become the first big employer to commit to a ‘living wage’ for all staff. Lidl operate 143 stores across the country and the introduction will benefit 20% of their entire Irish workforce. 700 staff currently earn below this rate, with the remaining 80% earning above this per hour.

The measure will be introduced from November 1st and is a 30% increase of the Irish minimum wage that is currently set at €8.65. A similar commitment will be introduced for Lidl Northern Ireland staff that will be calculated using the sterling benchmark.

Lidl already pay above average for all of its staff, with entry level wage starting at €10.50 an hour, generally paid to store assistants and warehouse operatives. The new living wage will also rise to €13 per hour incrementally within two years.

Lidl Ireland did not announce the overall cost to the company of introducing a living wage to all staff. However, a similar move that was announced across Britain last month was approximated to cost £9 million.

The Living Wage is an independently assessed and measured rate of income considered necessary to have a socially acceptable standard of living. It is defined as the minimum pay workers need to meet their needs for housing, utilises, transport, healthcare, clothing and food.

Source: http://www.irishtimes.com/business/retail-and-services/lidl-to-pay-irish-staff-living-wage-of-11-50-an-hour-1.2383702

Ireland’s Top 100 brands revealed

Produced by Checkout magazine and in association with Nielson, the Checkout Top 100 Brands is an accumulative account of the top brands purchased by Irish consumers. What is encouraging is that three of the top five brands are Irish products and illustrating brand loyalty amongst Irish consumers.

Furthermore, a number of Irish brands have made considerable movement. The likes of Jacobs, Club Soft Drinks, Irish Pride, Pat the Baker, Miwadi and Dairygold have all achieved their highest positions to date.

The collection of the top 100 brands in Ireland is based on branded value sales collected across the Irish grocery sector and thus making it the most accurate reflection of the biggest selling brands across Ireland. Sales performance is measured across 6,500 brands with over 200 product classes compiled in the report.

The biggest mover this year was Carrolls Meats which rose 41 places and currently sits at 72nd place. A total of 24 brands moved an impressive 5 places or more.

Checkout Top 100 Brands 2015

1Coca Cola
2Avonmore Milk
3Brennans Bread
4Cadburys Dairy Milk
5Tayto
6Lucozade
77up
8Walkers
9Jaocbs
10Extra
11Yoplait
12Pampers
13Club
14Irish Pride
15Dairygold
16Muller
17Goodfellas
18Danone
19Nescafe
20Red Bull

 

Source: http://www.checkout.ie/irelands-biggest-selling-brands-revealed-checkout-top-100-brands/19115