RETAIL FOR 2015 PREDICTIONS - Q1 2015
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With thanks to our Corporate Partners 2014 | 2015 Welcome to the Quarter 1 2015 edition of Retail Times I very much hope that Christmas 2014 delivered for each and every member. The speculation was that we would enjoy a robust trading period but this can sometimes disguise a very challenging trading situation being experienced by many members and especially those located in provincial Ireland. It is clear that retail is gradually moving up the Government agenda. Last year, after intensive lobbying by REI we witnessed the establishment of the Government Retail Consultation Forum. Chaired by Minister Gerard Nash, and with for their support of representation from most Government departments, this Forum provides us with a vehicle to articulate your concerns and feed directly into the construction of the annual Budget. The Forum meets four times a year and Retail Excellence Ireland and the Irish Retail Industry throughout 2015 it is our intention to host a member luncheon directly after each meeting to share progress with members, and most importantly, to listen to your concerns and feed these back at the next meeting. We are very much looking forward to the annual REI Retail Retreat. This year’s Retreat is schedule for 12th and 13th May at Carton House, Kildare. This is a great opportunity for members to get together and enjoy contributions from a wide variety of speakers. I would urge you to pencil the dates into your diary and join us for what will be two days of valuable insights and invaluable networking. We are currently working hard to construct a very practical and beneficial Retail Certificate in partnership with National College of Ireland. I would like to thank Paul Candon of Topaz for leading the retail steering group who are constructing the programme. The Certificate is being designed by retailers for retailers and will be made more accessible for all members by having a large proportion of the content available online. The Board and Council of REI have also decided that our industry awards programme requires an overall. To that end we are working to change the assessment process. In 2015 all store entrants will now undergo a stage one store assessment meeting. This assessment will be conducted by one of four qualified store assessors. Additionally we have decided to award excellence on a sectoral basis. We believe this will resonate greatly with consumers and thus award winners and finalists will benefit from enhanced footfall and sales. As you are aware, REI is a not for profits organisation with a superb executive team. The team reports into a member Board. It is very important that the Board is representative of all members, small and large, urban and rural. It is thus with great pride that I can confirm the appointment of Roisin Woods, McElhinneys and Patrick McCormack, Sam McCauleys to the REI Board. Both exemplify retail excellence and I look forward to working with Roisin and Patrick over the coming years. I would also like to thank Mairead Horkan, Horkans Garden Centres and Petworld who has retired from the Board. Thank you Mairead for you invaluable time and dedication in recent years. It is with the greatest of pleasure that I can also confirm that Colm Carroll, Chairman Carrolls Irish Gifts has been selected to become REI Chairman in 2016 | 2017. Colm is an absolute gentleman and I can think of no one better to lead our fine organisation into the future. I am sure you all join me in congratulating Colm on his appointment. Yours sincerely, Oonagh O’Hagan OONAGH O’HAGAN Managing Director, Meagher’s Pharmacy Group OONAGH O’HAGAN CHAIRPERSON, RETAIL EXCELLENCE IRELAND Research Title Awards Partners Partner Retail excellence iReland BoaRd MEMbERs BOARD: Oonagh O’Hagan, Meaghers Pharmacy Group • Keith Rogers, Ecco Footwear • Paul Kealy, Tony Kealys • Jacquie Marsh, The Butler’s Pantry • JP Kennedy, TileStyle • Colm Carroll, Carrolls Irish Gifts • Paul Cahill, Vodafone • David Myers, Heatons • Patrick McCormack, Sam McCauleys • Roisin Woods, McElhinneys • David Fitzsimons, Retail Excellence Ireland • Seán Murphy, Retail Excellence Ireland TRUSTEE: Sharen McCabe, McCabes Pharmacy Group • Kevin Jephson, Ardkeen Quality Food Store • Paul Candon, Topaz Energy 2 Q1 2015 | Retail times Q1 2015 | Retail times 3
COLM CARROLL ANNOUNCED MINISTER ANNOUNCES ZERO HOUR CONTRACTS SURVEY The Bites The Minister for business and Employment, Gerard Nash TD, has issued a call for AS REI CHAIRMAN DESIGNATE n ew tenders to carry out a study into the prevalence of zero hour and low hour contracts Butler and the impact of such contracts on employees. Zero hour contracts of employment s Chocolate Cafe in the Crescent S are contracts typically where the employee is available for work but does not have specified or guaranteed hours of work. It is expected that the survey will collect south Korean manufacturer lG’s most information on the extent of these contracts, the manner in which they are used and advanced smart refrigerator has a built-in camera that allows owners to see what’s in also to look at recent developments in other jurisdictions, particularly in the UK. The the fridge as they stand in the aisle of a study will also focus on how these contracts operate in practice and particularly on how supermarket, phone in hand. they impact on employees. It will assess the advantages and disadvantages from the hopp One of the most visually perspective of employer and employee and assess the current employment rights Minister Gerard Nash is to ing legislation as it applies to employees on zero hours contracts. Minister Nash said, “We Cen stimulating stores visited conduct a survey tre, as part of the recent Rei are seeing increasing debate both here at home and further afield on zero hour contracts. investigating the prevalence Lim retail safari in London ick but, there is a distinct lack of hard data in Ireland on the prevalence of zero hour contracts er brin of zero and low hour was anthropology, gs the en and low hour contracts and the impact they have on workers. We are addressing this Regent street. Their n umb er of s evente contracts in the living wall is superb. Cafes op nd to information gap through this study”. throughout erated by Butlers in Irela Irish economy in Q1 2015 mellericks Pharmacy in 2015 and will Fermoy has recently moved to new premises in the work hard to ensure REI continues to town. The new store is superb and grow from strength to strength.” WE ARE SEEING INCREASING DEBATE BOTH HERE AT HOME AND FURTHER a must visit. NEW BUTLERS AFIELD ON ZERO HOUR CONTRACTS Colm Carroll will become REI Chairman for the CHOCOLATE CAFÉ 2016 | 2017 period OPENING IN LIMERICK Topaz, Ireland’s largest convenience and fuel Colm Carroll, the Chairman of Carrolls butlers Chocolates recently opened TOPAZ ANNOUNCE TWO MAJOR NEW SERVICE STATIONS retailer has announced that it will create 110 their newest Chocolate Café in the new jobs between two major new service Irish Gift stores has been announced as Crescent shopping Centre, Limerick. stations opening in North Dublin and County We noticed this great sign in Chairman designate of Retail This brings to seventeen the number of Laois in January. The two stations are being the colour store, Excellence Ireland for the period 2016 | Dungarvan recently. Well butlers Chocolates Cafes now developed at a cost of €10 million. In addition 2017. speaking about the appointment done shane – you can’t beat operating in the Republic of Ireland. to the full time jobs being created, an a bit of retail humour – David Fitzsimons, Chief Executive, speaking on behalf of butlers additional 200 people are employed on the “Husbands MUsT have a Retail Excellence Ireland said “REI has note from their wives before Chocolates, Michelle Mcbride, Retail development of the sites which will include a policy of selecting board members selecting colours”! Director, commented on the opening service stations, restaurants and shops. One who epitomise retailing excellence. saying; "We are delighted to be opening of the stations is located at Junction 3, A group of dunnes stores workers brought Colm’s selection as Chairman our first butlers Chocolate Café in adjacent to where the M50 meets the M1 at a claim to the Labour Court in October 2014 designate is a wonderful development relating to their work and pay conditions. Limerick and we are excited about our Clonshaugh in North County Dublin while the for REI. Colm has always been expansion into the mid-west region. We other is at Junction 3 on the Dublin Cork tremendously supportive as a member, look forward to welcoming new and motorway near ballacolla in County Laois. a board member and now as our future existing customers and to bringing the both stations will open in January next. Paul Chairman. The board were unanimous full butlers Chocolate experience to a Candon, Marketing and Corporate services that Colm is the best person to lead new customer base." Director at Topaz said “Topaz is in job REI. He epitomises all that is great about retail. both I and the REI team creation and expansion mode and we are are looking forward to supporting Colm constantly looking at sites with good potential During a recent Rei trip to a retail tech conference in Lille, leading French grocery in his role”. Colm added “being selected WE ARE EXCITED ABOUT – particularly near motorways. Our award chain auchan kindly hosted a tour of their to take up the mantle of Chairman of winning sites at Dublin Airport and Cashel stores. We were impressed with their service REI for the 2016 | 2017 period is a OUR EXPANSION INTO have been extremely successful and we allowing customers to have their online tremendous honour for me. I look expect these new sites to be likewise. We purchases delivered to their local Auchan store for collection. forward to working alongside our THE MID-WEST REGION are actively looking for new sites and current Chairwoman Oonagh O’Hagan Paul Candon, Deirdre Bruton, Jonathan Diver all of Topaz announcing expansion plans for 2015 locations across the country." 4 Q1 2015 | Retail times Q1 2015 | Retail times 5
LIFE PHARMACY PASSES THE FORTY MARK Bites since its launch in April, the Life Pharmacy symbol group has grown rapidly having just passed the forty members mark in December. The symbol group is a partnership between independent pharmacists and the wholesaler Uniphar, where all pharmacy members, also become shareholders of the life pharmacy company. Paul spiller Group Manager Rei has commissioned research to said “Our successful formula of providing valuable services at low cost investigate issues pertaining to retailing in border counties and to also review visitor has fuelled this rapid membership growth. With an ever increasing range perceptions of the retail offering and value in of supports coming on stream, I would expect the rapid growth rate to belfast and Dublin markets. The findings will continue right through 2015” be available in early January. A group of applegreen executives recently completed the New York marathon all in aid of Crumlin Hospital. Well done to Joe barrett, Keith Ennis and the team. SERVICES AT LOW COST HAS FUELLED THIS RAPID MEMBERSHIP GROWTH nd oss Irela An Taoiseach Enda Kenny TD, Oonagh O’Hagan, REI Chairwoman and MD Meagher’s Pharmacy Group cr Life Pharmacy Group expands a and REI Chief Executive David Fitzsimons were on hand to launch Small Business Saturday. Some of the most famous models in the world touchdown in London AN TAOISEACH LAUNCHES SMALL BUSINESS SATURDAY VICTORIA’S SECRET Retail Excellence Ireland recently launched an initiative to support small ted Baker outperformed the market by independent retailers. The small business saturday campaign built up to LONDON SHOW FIRST recording a 12.7% like for like climb in sales December 6th last and endeavoured to get consumers to shop local for one day For the first time ever Victoria’s secret held their annual for the thirteen weeks to November 8th. Most in the run up to Christmas 2014. The initiative was supported by bobby Kerr’s extravaganza in London December last. The show which other fashion retailers suffered through a is broadcast to over one hundred and fifty countries is Down to business programme on Newstalk which hosted a special segment on period of unseasonably clement weather. the 6th interviewing independent retailers around the country. The campaign was the fashion equivalent of the superbowl. some of the a success with many independent members stating that their local towns received world’s leading models were accompanied by performers We understand that the newly opened ecco store in a significant boost in trade. such as Taylor swift, Ariana Grande, Ed sheeran and Limerick City Centre is Hozier. The lingerie company flew in the models on a trading extremely well. A specially chartered flight which caught the attention of the good indicator for other progressive retailers COUNTY CLARE RETAILER OF THE YEAR ANNOUNCED UK media. The show commenced in 1995 and has grown planning to open in the city Ennis retailer Madden Furniture to be one the largest of its type in the world. in 2015. recently scooped the coveted Rei and some other trade County Clare retailer of the year associations have come together to commission Behaviour & attitudes to gong at the annual FbD Ennis CENTRAL EUROPE ONLINE SALES SPURT conduct an assessment of the impact of Chamber of Commerce awards. With an average growth rate of nearly 23% in 2013, the e- aggressive begging in Dublin City on footfall Founded in 1977 the retailer is commerce market in Central Europe is showing no signs of and shopper behaviour. We will profile the one of the most progressive in findings in January. slowing. This development is far above the average European Ireland. speaking after the win growth of 17.5%. At €93.3 billion, Central Europe accounts for Rei is a member of the lUas cross city Work Group. We are working hard to ensure company managing director 25.7% of e-commerce sales in Europe. Last year, 68 million that Dublin City Centre is as accessible as Michelle Madden said “To be of the 165 million Central European citizens bought goods and possible during the construction phase. selected as the best retailer in services through the Internet. Germany is still by far the largest spar Gourmet, Merrion Row, Dublin was County Clare is a great e-commerce country in the Central European region. With its recently selected by leading UK Retail achievement for the business. It is e-commerce turnover of €63.4 billion, it accounts for 68% of journal Retail Week as their store of the week. Well done Thomas! great to be acknowledged having the region’s total e-commerce turnover. At 86%, internet invested significantly in the penetration in Germany is very high, and consequently the 3 ireland have announced the appointment of Johnston shopfitters in their rebranding business in recent years. I am country has the largest online population in Europe. Central Central European customers spend €1,379 each online in 2013 of over forty stores nationwide. 3 Ireland said particularly delighted for our Michelle and Aoife Madden (seated left and centre) European consumers spent on average €1,379 per person “it is great to be working with an Irish dedicated and hard working celebrate their recent selection as Clare retailer of the online in 2013. This is over €100 more than in 2012 and a little more than the European average of €1,376. However, it is less company again”. team”. year than the EU28 average of €1,500. With an average amount of €2,122 per person, Austrians spent most online in 2013. 6 Q1 2015 | Retail times Q1 2015 | Retail times 7
PETER O'BRIEN NEW TOWNS TEAMS PAY OFF OVER Bites CHRISTMAS 2014 The establishment of Town Teams and ACCESSORY COLLECTION FOR ARNOTTS business Improvement Districts (bIDs) Peter O’brien recently launched a new accessory collection for During a recent visit to lille we noticed this has proven to pay off for local Arnotts. The launch also saw the innovative merchandising of washing businesses over the Christmas 2014 designer collaborating with Irish machines. period. Many Town Teams created milliner John shevlin to present specific plans to enhance footfall and Place hats in his accessory collection for consumer activity in their towns, with many s lik the first time. The collection boasted e Li others creating investment prospectuses to three silk scarves, which feature a mer ick drive retail investment and occupancy. Of ved selection of drawings from his theatre pro specific benefit was the willingness of many tha t th costume drawings. One scarf focuses e es Local Authorities to work with Town Teams and tabl ishm solely on ball gowns, while another focuses 014 offer car parking promotions over the December ent of a Town Tea C hristmas 2 on ladies and men’s costumes. speaking m paid-off over period. Limerick and Galway were two such examples with about the scarf collection, Peter said: “As I both cities offering extensive free car parking periods in the run up have been designing for the theatre for the to Christmas 2014. speaking about the development Cormac Kennedy, Eason and last twelve years I have a huge archive of american eagle has opened three stores in drawings and people are very interested quick succession in the United Kingdom. The Chairman of the REI Town Revival Group said “It is really pleasing to see local Town Allcare fundraising initiative benefits a very worthy cause stores are located at Westfield stafford, Teams working in such a collaborative manner with Local Government. Through such about the whole design process and are Westfield London and bluewater in Kent. curious about looking at my sketches.” collaboration everyone wins. businesses enjoy enhanced footfall and spending while the Local Authority retain and grow their rates base.” CORK ALLCARE PHARMACIES CHARITY INITIATIVE sixteen well-established Cork pharmacies, all members of Allcare Pharmacy, a 100% Irish owned network of 64 community pharmacies, recently teamed up with Marymount BROWN THOMAS AND THE Hospice for a fundraising initiative to benefit the local community. The aim of the charity initiative was to raise funds for the purchase of two new community care cars for BUTLER’S PANTRY TIE-UP Marymount Hospice, which enables them to provide vital support to the seriously ill. brown Thomas welcomed The Through the combined donations of customers in the Cork pharmacies, a €30,000 target butler’s Pantry into store over was exceeded, with a total of €31,118 raised for this very worthy cause. Commenting December 2014 with the leading on the charity initiative, Tony McEntee, CEO, Allcare Pharmacy said; “Allcare is a artisan food producer opening nationwide network of long established community pharmacies where the local concessions in a number of brown community is at the centre of everything we do. Consequently, we are delighted that Thomas stores. The partnership Allcare Pharmacies could use its countywide network of 16 pharmacies to support proved to be a real winner. Jacquie Marymount’s vital community palliative care service and most Marsh, The butler’s Pantry Peter O’Brien brings an exclusive and tantalising importantly we want to thank all our customers who generously We felt a bit old recently when we shared a bottle of vino with the next generation of Managing Director said of moving collection to Arnotts donated to this very worthy cause.” retail. Martin McElhinney of mcelhinneys into brown Thomas, “We were and Keelan bourke of Patrick Bourke menswear catch-up following a visit to the delighted to bring a premium Irish handmade selection to brown NEW BODYSHOP STORES LOCAL National Tailoring Academy. Thomas where we showcased the most popular foods in our Christmas, PROVE SUCCESSFUL COMMUNITY gift and hamper range. Edel Woods, The bodyshop Ireland recently opened new The Butler’s Pantry Brown Thomas concession stores brown Thomas said, "We were stores in Cork, Limerick and Dublin just in IS AT THE delighted to welcome The butler’s time for the busy Christmas period. The proved a real winner over Christmas Pantry Christmas pop-up to brown stores enjoyed a very robust trading period CENTRE OF Thomas. The integrity of The butler’s over December. speaking at the launch, Pantry brand and what they stand for reflects brown Thomas perfectly in Peter McDonald, Managing Director, The EVERYTHING bodyshop Ireland said “We were delighted to SHOWCASED THE MOST POPULAR terms of service and quality of open this new store in the heart of Cork, Dublin WE DO FOODS IN OUR GIFT AND CHRISTMAS product offer.” The tie-up also and Limerick City Centres. The stores include lots Galvin For men Tullamore have recently provided The butler’s Pantry with its of recent store design enhancements and the reaction completed a refit of their store. The results are first class. Well worth a visit. HAMPER RANGE first retail exposure outside of the The Bodyshop openings proved great additions to from consumers has been second to none. We are Dublin market. planning some further store openings in 2015”. the high streets in Limerick, Cork and Dublin 8 Q1 2015 | Retail times Q1 2015 | Retail times 9
EXAMINERSHIP PROVES THAT REI LAUNCH ECOMMERCE the NUMBERS WE ARE DELIGHTED TO BE EXPANDING THE WE ARE NOT OUT OF KNOWLEDGE DASHBOARD CARRAIG DONN BRAND IN THESE REGIONS THE WOODS Retail Excellence Ireland, in partnership with studioForty9, The dates in May 2015 when REI 12&13 host the annual Retail Retreat The recent examinership of the Karen has announced the launch of an CARRAIG DONN EXPANDS SKECHERS SHOW NO SIGNS Millen group of companies proves that many retailers remain in a distressed state, e-Commerce Knowledge Dashboard. The eCommerce The average basket value in ITS RETAIL FOOTPRINT OF SLOWING DOWN many of whom are struggling with onerous Celtic tiger rent costs. Commenting on the Dashboard aims to foster The new REI Dashboard will allow participants compare their Carraig Donn, the leading Irish retailer, knowledge and understanding 130 pounds sterling at UK retailer Majestic Wine recently opened a further four new stores development David Fitzsimons, Chief of e-Commerce Analytics and performance with a benchmark group Executive, Retail Excellence Ireland said bolstering its position in the Irish market. Data among members. Commenting on the launch Jayne O’Driscoll, REI “We are aware of a number of large retail The new stores located at Arklow, eCommerce Executive said “The dashboard will help our eCommerce members Dundalk, Waterford, and Navan led to the companies who are planning a The like for like percentage reorganisation of business affairs in early to analyse the performance of their e-Commerce site within a controlled peer creation of 50 new jobs, bringing the total 179 increase in Smeg cookers sales number of employees in the group to 450. 2015. No matter to what degree the group. This data will be unique in Ireland and will help participating members to at John Lewis during November Carraig Donn Chief Executive Pat Hughes economy recovers, these companies understand the trends and standards derived from statistics which are directly said ‘We are delighted to be expanding simply cannot sustain commercial rent relevant to their business and market. It will also help to drive a programme of The average Euro amount spent the Carraig Donn brand in these regions costs which increased by 240% between eCommerce education based on an analysis of data gathered as part of this by visitors to Ireland according and creating much needed jobs in the the years 2000 and 2007, a period when initiative.” 1,142 to recent research conducted by local area. We are looking forward to consumer prices increased by 30%. What is particularly concerning is the number of REI and NIIRTA welcoming new customers in these regions and this announcement marks the small business owners who continue to WIR CHRISTMAS GET TOGETHER suffer from the burden of personal The REI Women in Retail Network hosted their annual Christmas get together in the The percentage of Littlewoods beginning of another great chapter in the guarantees tied to these onerous leases.” Kilkenny Shop, Nassau Street on December last. The evening was hosted by Marian Carraig Donn story, as we embark on our 52 purchases which are made on a 50th year in business’’. It is hoped that the Karen Millen group of O'Gorman, CEO of Kilkenny Group. Marian spoke passionately about her life in retail mobile device companies will successfully exit and provided members with some helpful insights into her success. Celebrity Stylist Lorna Claire Weightman also joined the evening's examinership in early 2015. festivities. She brought along some beautiful models and The date in December when showcased How to Make Your Work Wardrobe Work For You. Stock market analysts recommend a buy of 6 Ireland enjoyed its first ever Small Business Saturday Skechers stock The night ended with an exclusive VIP experience in the Kilkenny store along with great conversation and networking opportunities. A wonderful night was had by all. 2014 proved a very productive The number of REI members year for iconic footwear brand who are participating in the skechers. Not only has the 40 new REI eCommerce company grown its retail Dashboard presence in Ireland, globally it has also over achieved. The like for like percentage skechers proved to be one Many other retailers are planning a of the top performing stock 1.8 decline in recent Walmart sales excluding petrol market stocks globally in reorganisation of their leases in 2015 2014 recording gains of 76% The percentage of Dubliners year to date. Market analysts WE ARE AWARE OF A NUMBER have become very bullish who believe that aggressive about sketchers with a OF LARGE RETAIL COMPANIES 90 begging in our capital city is significant number making buy WHO ARE PLANNING A deterring customer visits recommendations. The analyst’s rai REORGANISATION OF Car gD position is founded on growing market according to recent research onn con share and strong sell through of commissioned by REI tinu e to grow innovative product ranges leading to BUSINESS AFFAIRS with the addition of four new stores earning per share growth of a whopping IN EARLY 2015 500%. Women in Retail Christmas Get Together SOME TOP 2014 JANUARY - We led a member delegation to the APRIL – We spent four days with a great group MOMENTS IN APRIL – We facilitated the formation of many town AUGUST - The World Garden Centre Congress SEPTEMBER – Granny Big Retail Show New York…. of Retail Managers…. teams nationwide including this one in Bray…. came to Ireland…. came to Limerick…. 10 Q1 2015 | Retail times Q1 2015 | Retail times 11
A TREND WHICH IS CERTAIN TO 12 CONTINUE AS THE ECONOMY IMPROVES IN 2015 IS OUR GROWING FONDNESS TO INCLUDE FOOD AS A CENTRAL PART OF OUR SHOPPING ed EXPERIENCE ueez q et s ark le m idd m the The eft pus s has l h to ney po sh by many val ark | Pen ue retailers such as Pr i m RETAIL abusing the incentive. What Minister THE PUSH TO POSH BREAKING Noonan failed to do was look at the economy holistically. It is my contention BREAD It is undeniable that many of the value that there are in fact three economies in retailers, particularly in fashion, have retail today. The Dublin evening economy created store environments which could is powering ahead and shows no signs of be mistaken as luxury stores. Penneys | slowing down. This economy has been A trend which is certain to continue as the enhanced by increased visitor numbers to Primark is an obvious case in point. economy improves in 2015 is our growing PREDICTIONS Furthermore the luxury fashion stores our capital city. The second economy is fondness to include food as a central part the Dublin daytime economy. This is at have responded and upped their game by of our shopping experience. Whilst best flat at present. The Dublin daytime redesigning their retail footprints to midweek shopping is all about economy continues to suffer from anti- become ultra decadent. This push to posh convenience, and thus we seek out social issues and weekly protests which at either end of the market has impacted convenient eating opportunities, the according to AA reports make the city a no significantly on the squeezed middle weekend is all about experience. Hence FOR 2015 market retailer. This trend will continue in go area. The third economy is everyone we will continue to witness retailers else outside of the M50 – provincial 2015. knitting food into the shopper’s day out. Ireland if you like. This economy continues The department stores continue to add to struggle primarily due to emigration. square footage to eat in food, the garden The divide between the three is likely to centres have become retail and dining grow in 2015. destinations and soon we will see other retailing destinations do likewise. Recent space allocation changes at Avoca best demonstrates this trend. The majority of this progressive Irish retailer’s footprint is now dedicated to eat in and take out food. BIG DATA MAN Don’t be surprised when in 2015 we begin Many retailers now realise that their epos With 2015 upon us, to see coffee and dining offers pop up in stores around the country. data has value. More and more retailers are interrogating their data and, using this and retailers facing into a new year new found business intelligence, are making decisions relating to open to buy with fresh targets to achieve, THREE TIER budgets, category performance, net margin analysis, store grading and such David Fitzsimons, Chief Executive, ECONOMY like. In some cases the data is being mined by a third party company and thus the retailer is also presented with data Retail Excellence Ireland It was concerning to hear Minister Michael pertaining to their sector as well as their business. More and more retailers will Noonan recently comment on inflation in takes a look at the major trends which might Dublin hotel bedroom prices. The Minister suggested that he would withdraw the 9% invest time in the interrogation of their data and as a result will make better and dominate Irish retail over the next 12 months VAT rate if he felt that businesses were more informed decisions. Q1 2015 | Retail times 13
COMPANIES LIKE TIGER WILL GROW CUSTOMERS SIGNIFICANTLY IN 2015 - THEY ARE fty t men ast fi EMBRACE age ONE OF THE FAST FIFTY the f eng an e of Hum H2H - on to are an Hum ey – – th H2H HUMAN TO HUMAN race 015 emb in 2 e rs tly Custom ifican sign ow ENGAGEMENT. Companies like Ti ge r w ill gr generally is going mobile. 52% of Littlewoods online sales are now made on CONSUMERS HAVE A mobile devices. The lesson here is that if you have a website, you build it for mobile first. DON’T BE GROWING HUNGER TO HEAR SURPRISED TO THE PRODUCT STORY FAST FIFTY WALK INTO A REI is often asked to comment on retail sales data and for many years we have GARDEN CENTRE H2H someone making the customer a cup of used the standard jargon of annual like for coffee or selling them a vacuum cleaner, the likes etc. I personally think it is time to customer wants a pleasant and informed interaction. Technology will come and go but H2H is here to stay. change how we express sales data. The reason is that whilst the economy might grow or indeed decline, there are a number Anti-big provides smaller retailers with an opportunity to embrace local and tell their story – This Manhattan retailer is very clear about what they stand for WHICH HAS of retailers who either way will foraged a future of growth. It is my belief that 2015 will CONVENIENCE IS KING PERSONALISATION FOOD TRUCKS HUMAN TO HUMAN CRAFT & witness the accelerated growth of approximately fifty “on-trend” retail brands. Thus in many ways the sales story of these As the economy continues to recover and we all invest more time in our work due to scarce More and more we are witnessing significant levels of personalisation in the high street. DOTTED ENGAGEMENT C U R A T I O N on trend companies will be far different to the rest. resources, we will continue to be time poor. behaviourally we have also changed; to some Whether that involves adding your personalised monogram onto a handbag or a piece of jewellery being designed just for you, AROUND At a recent retail technology conference in Consumers are very eager to learn of the degree we embrace what is easy and that behaviour in turn then becomes habitual. The personalisation will continue to grow. Walk down any street and you will be offered the THE EXTERIOR ANTI-BIG provenience of many day to day purchases rise in online shopping and other facets such France I was struck by the amount of technology being developed for the retail industry globally. some of it was they make. A trend which is likely to grow in 2015 is for more and more retailers to as click and collect underline the fact that if we can make it easy for consumers they will opportunity to build your own sandals, teddy bear, mobile phone cover, handbag strap and the list goes on. One of the fastest growing SPACE embrace this consumer demand by stocking respond. Whether that be text ordering a retailers in New York is 3x1 – a jeans retailer sensational, but most of it served no real and better curating crafted items which have sandwich or having an online purchase with a difference – you build your own pair of purpose. What I learned was that just A trend we saw in London recently was a a back story. The resurgence in the craft delivered within two hours, the fact is that jeans and pay at minimum $800 for the because you can create a technology to do growing cohort of customers who have something, does not necessarily mean that beer market is one such example. Whether convenience is king and will remain so. pleasure. More and more we will notice Larger format stores will look to new innovative uses of space grown tired of the “big retail brands” and it should be implemented. In many ways in it be a burger, glassware, pottery, fragrance, instead choose to shop with independent customers asking for products their way. – don’t be surprised to walk into a garden centre which has our rush to embrace online, tech and loyalty cosmetics, shoes..... consumers have a retailers whom they feel offer a more SPACE PRODUCTIVITY food trucks dotted around the exterior space we have somewhere along the way growing hunger to hear the product story. personal relationship. The anti-big trend has Ireland is over retailed (as we all know) and forgotten the basics of retail. I was asked at led retailers such as Tesco and starbucks to many larger format stores have too much the tech conference to outline what I endeavour to localise their stores through space. In 2015 we will begin to see this matter believed will be the next big technology in retail. I told the assembled audience that MOBILE SHOPPING innovative and unique design, and the delivery of an offering that is more focused being addressed through the introduction of new categories and shop in shop concession from my perspective the next big thing You don’t need to be a genius to work out on the needs of the local community they formats. Garden centres are also critically would be H2H – Human to Human that we all are wedded to our phones. More serve. There is a real opportunity here for assessing how they can do more with their engagement. It is my belief that consumers and more we live our lives through our independent retailers to embrace this trend space. be assured that by the end of 2015 desperately seek out an engaging person to mobile devises. It is thus no great surprise and actively communicate what their brand many larger format stores will look a lot person experience in store, whether that be that online shopping and purchase research stands for. different to how they currently look. 14 Q1 2015 | Retail times Q1 2015 | Retail times 15
According to the Department of Jobs, Enterprise and Innovation the average waiting time for permits is down 51% on RETAIL – IT’S ALL ABOUT PEOPLE At Retail Excellence Ireland, we are 100% focussed on helping our members achieve excellence January 2013. As at september 2014, the average waiting time was 18 working days. PROTECTED DISCLOSURES in all aspects of their retail businesses. Good people management is one of the fundamentals ACT 2014 required in achieving this standard. This Act provides protection against penalisation for employees who report wrongdoing. While this legislation is aimed at protecting employees, proper disclosure We have listened to our members’ needs impact on employees and to make policy can also be of benefit to employers as it and have introduced a range of measures recommendations to Government on foot can assist in uncovering wrongdoing within in 2014 to assist members with their HR of the study. A full update with advice has an organisation which may help to prevent responsibilities. This is only the starting been emailed to REI members recently on accidents, financial scandals, criminal point. In 2015, we have a range of exciting this issue. offences and regulatory breaches. interventions and learning events which will equip our members with knowledge LOW PAY COMMISSION GOVERNMENT JOBS and skills to enable them drive their REI HR Network meets Minister Nash, Department of Jobs, Enterprise and Innovation at the REI A statutory Low Pay Commission is to be business to the next level of excellence. established in 2015. The Low Pay INCENTIVES SCHEMES – Leadership Symposium, September 2014. In this edition of Retail Times, Clare Commission will be asked to make annual PLANS FOR 2015 4. Use your probation period – Too Dowling, Head of HR Advisory services at REI explores how retailers can be the best by forging a strong people culture in their recommendations to Government on the national minimum wage rate and related JoBsPlUs: There will be a doubling of JobsPlus places in 2015 from 3,000 to EXCELLENCE IN PEOPLE often underperforming employees are not properly screened during the MANAGEMENT matters. 6,000 to incentivise employers to hire long- probation period. A probation period organisations. term unemployed people from the Live affords employers the opportunity to HR REVIEW OF 2014 ACCRUAL OF ANNUAL LEAVE Register. Employers can receive up to assess whether an employee is a €10,000 in monthly cash grants over 2 suitable match for the job. The WHILE ON SICK LEAVE AND LOOK AHEAD TO 2015 On the workplace legislation front, 2014 Existing legislation is to be amended to allow workers on long term sick leave to years for each eligible employee. A new JobsPlus strand for young people TOP TIPS FOR 2015 applicable probation period should be set out in writing in the contract of employment to avoid any dispute on was a busy year which saw the accrue and retain annual leave for up to 15 will be launched in 2015 under the Youth The starting point to ensure that people this issue. introduction of a number of pieces of months from the end of the year in which it Guarantee. are at the very centre of your business is legislation affecting employment and also accrued. JoBPath: €12 million will be provided for 5. Review your employment contract – a number of announcements regarding to ensure you and your people managers Check you have fulfilled your legal the new employment activation changes to the workplace in the future. programme JobPath. It is expected that embrace the following key points: obligation by providing all employees Clare Dowling together with the new EQUIP OUR MEMBERS WITH with a written statement containing JobPath will help about 115,000 long-term Deputy CEO in REI, seán Murphy are KNOWLEDGE AND SKILLS TO 1. Know the law – REI has produced a their terms and conditions of unemployed jobseekers return to work. working hard to ensure REI very handy wall chart which members employment. Preferably this will take members’ voices and ENABLE THEM TO DRIVE THEIR Further information on the Government may use to check the statutory the form of a comprehensive contract concerns are being BUSINESS TO THE NEXT LEVEL labour activation schemes is available at entitlements of employees. This will be of employment containing many heard on a range of www.welfare.ie. posted to members shortly. REI in clauses for the protection of the representation OF EXCELLENCE conjunction with Tommy smyth HR employer e.g. probation period, non- REI will keep members informed of all issues including relevant employment related news Consultants continues to offer competition clause, retirement age etc. the following:. NEW LEGISLATION: throughout 2015. complimentary telephone advice to REI members on HR issues. HR is If you are satisfied all employees have already received contracts, review the national Vetting Bureau (children and also, of course, included as a key JLCs Vulnerable Persons) act 2012 REI HR NETWORK learning strand at all main REI content to ensure it is up-to-date and meets the requirements of your New legislation This Act, which is expected to come into 2014 also saw the establishment of the learning events. business. has been force shortly, puts in place a mandatory REI HR Network which is made up of HR introduced national vetting process for persons who 2. start on the right note: training and 6. Review your workplace polices – Managers and Directors of member purportedly seek employment in certain limited induction – Ensure employees Check you have the appropriate companies. The Network will meet on remedying any protected areas. The type of worker that receive the training they need to allow workplace polices in place i.e. various dates throughout 2015 including at constitutional or requires vetting is listed in the Act but them properly carry out their job disciplinary, grievance, security, use of the annual REI Retail Retreat on Tuesday legal difficulties with primarily includes those persons working responsibilities. Every new employee CCTV, cash handling procedures, 12th May 2015 at Carton House, the Joint Labour with vulnerable adults and children and should undergo a comprehensive alcohol and drugs etc. It is important Maynooth, Co. Kildare. Details of all HR Committee (JLC) system. It employees covered under the Private induction detailing the standards that clear rules are set out in advance, Network meetings in 2015 will be remains possible however that the system security services Act 2004. required in the business. This assists otherwise it can be very difficult to circulated to members of the Network in will be subject to further legal scrutiny. The in creating the culture you want in your tackle a problem at a later stage. due course. JLCs for the Retail Grocery and Catering EMPLOYMENT PERMITS business by ensuring your standards 7. set out the applicable retirement sectors have yet however to be are met from the get-go. reconstituted. (AMENDMENT) ACT 2014 age in your business – There is no This Act aimed to improve the application 3. set your boundaries early on – single retirement age in Ireland, process and introduced new classes of GOOD PEOPLE MANAGEMENT Clear, objective standards of although 65 is generally regarded as REVIEW OF ZERO AND employment permits, the aim of which is to IS ONE OF THE FUNDAMENTALS acceptable behaviour and conduct the age most people retire at. The age attract highly qualified and specialised should be set out early on to ensure at which the state Pension is payable LOW HOUR CONTRACTS individuals to the state to boost the REQUIRED IN ACHIEVING bad habits are not formed. This can be is increasing. This may result in A study is to commence in early 2015 on achieved by way of a well drafted staff disputes if a retirement age is not the prevalence of zero and low hour economy and to encourage further THIS STANDARD. handbook, structured team meetings development in the ICT sector. defined and the employee may not be contracts among Irish employers, their and performance appraisals. in a position to afford to retire. 16 Q1 2015 | Retail times Q1 2015 | Retail times 17
Currently the state Pension is paid at receive regular training to ensure they critical task for any retailer. REI can 66 years however the qualifying age have the skills and knowledge assist members in a variety of ways in will rise to 67 in 2021 and 68 in 2028. required to successfully carry out their achieving that level of excellence. Employers should ensure the job functions. Frontline retail applicable retirement age is confirmed employees should receive ongoing if you require any assistance with hR in in the contract of employment thus training on customer service, cash your business, Rei offers members a avoiding any ambiguity on the matter. handling and security procedures. range of services at reasonable rates. Managers should receive training on here are some examples of the services 8. communicate clearly – Often provided: problems arise solely due to poor or how to effectively manage and lead little communication in the workplace. their team and how to drive business • Review of contracts of employment, Keep your employees involved in the strategy. Proper training will also assist workplace policies and staff bigger picture. Let them know what is with maintaining motivation and handbooks to ensure best practice going on overall in the business, even morale amongst employees. and business requirements are met; if it does not directly affect their role. Remember REI offers relevant training • Review of HR administration to ensure Good communication keeps to members throughout the year. legal compliance; employees motivated and aligns their 10. Remember happy employees make • Advice on handling a formal goals with the objectives of the happy customers… - Employees disciplinary process; business. set out all rules, standards represent a company and its brand. and procedures in writing to avoid any • Advice on dealing with grievance and / Their interactions with shop-goers uncertainty. or bullying and harassment have long been considered the complaints; 9. Recognise training as an ongoing ‘moment of truth’ for customers. Ensuring your employees are happy • Advice on change management such need in the business – Employees at and engaged in the workplace is a as restructuring, redundancy etc. all levels in a retail business should LAUNCH OF PEOPLE MANAGEMENT TRAINING FOR RETAIL MANAGERS GET YOUR TEAM BEHIND YOU “In REI we often course which gives your store managers • Performance management: Getting deal with the knowledge and skills they need in the most out of your employees queries from order to effectively manage their retail • managing absenteeism: Dealing with retail staff. Every business has its own absence and creating an attendance managers structures and challenges so the training is culture who do not entirely tailored to your individual business • managing change: Approaching know how requirements and based on the particular redundancies, restructuring and to approach responsibilities of your managers. reviewing terms and conditions of a situation A sample of the modules involved in the employment which often training is detailed below, however please The one day training course is delivered means it has note the content is completely in-house in your own business. Places on escalated into customisable, depending on your own the course are limited so as to ensure a a full-blown requirements: high level of interaction and to ensure all dispute with all participants’ queries are fully answered. parties fully entrenched • conflict management: Drugs and alcohol, staff surveillance, theft and The cost of the course is €1,950 plus Vat in their positons. These at 23%. interruptions to your business are costly, shrinkage, interpersonal disputes time consuming, distressing and without • handling difficult conversations The benefits good people management doubt negatively affect your customers’ with your employees: How to practices bring to your business include: experience of your store. With the right approach them and what can you say help and early intervention these situations • dealing with discipline: Conducting • Less conflict in the workplace are altogether avoidable.” says Clare formal investigations and disciplinary • Reduced risk of claims and litigation Dowling, Head of HR Advisory services in hearings • Increased levels of productivity, REI. • managing grievances / bullying and motivation and morale harassment complaints: How to • All of which results in a better HR is an integral part of every retail manage formal complaints properly experience for your customers thus business regardless of size. Lack of and effectively increasing the bottom line investment in HR often results in financial expenditure and time lost elsewhere in terms of disputes, theft and shrinkage, reduced productivity, high staff turnover rates, low morale etc. TESTIMONIAL “This training has had a significant impact on our managers, both in terms To assist members in achieving both legal of their skill levels and how we work together as a team. The content was compliance and best standards in HR, REI is delighted to announce the launch of a practical and focused on developing the skills and also the confidence of training programme specifically designed our mangers in their day-to-day people management.” Orla briggs, HR for store managers in the retail industry. Manager, Carroll’s Irish Gifts. We have successfully delivered this programme to a number of members in FoR BooKinGs and enQUiRies: please contact Clare Dowling, Head of HR Advisory 2014. It is a practical one day training services in Retail Excellence Ireland. Tel: 065 684 6927 Email: clare@retailexcellence.ie. 18 Q1 2015 | Retail times
7 GOOD REASONS TO LEAVE YOUR PAYROLL TO THE PROFESSIONALS Payroll is a complicated, mandatory business function for any business. For retailers, it is even more complex. You have employees on salary and you have employees on hourly rates, scaled and overtime rates, not to mention shift changes or no-shows. All this complexity adds to the time it takes to do payroll. Add to that the continuous changes to tax credits, allowances, benefits, emergency tax bands and cut-offs, it is a job in itself trying to keep up. With a new year dawning and new goals being set, now is a good time to re-examine your payroll requirements. Payroll is an overhead but it doesn't have to be an expensive one. Here are seven areas to consider when making an informed decision about whether to continue with your in-house payroll or outsource it to an accountant who specialises in retail payroll. Angela Garvey is an accountant that specialises in trouble with Revenue. The last thing you 6. continUal tRaininG retail accounting and affordable payroll solutions need in 2015 is being liable to pay Revenue and Best PRactice for the SME Retailer. A Preferred Supplier with penalties and back pay for making a payroll Anyone who processes your payroll must be Retail Excellence, Angela runs AG Associates mistake, not matter how small. continually trained in payroll. Every year, Accountants and works with some of the leading There are so many dates and returns to be there are new changes introduced in the retailers in the country. For further information aware of. Tax credits and P2Cs which the budget which affects payroll. Take for please contact Angela at angela@agassociates.ie Revenue sends electronically through-out example the property tax. That's now going or 021 4824723 website: www.agassociates.ie. the year must be imported into your payroll through payroll which is another deduction system. It's imperative that all staff are to work through. so your staff needs to be paying the correct amount of relevant taxes. 1. cost oF PayRoll Keeping track of important dates such as up-to-date with the obvious (and not so Payroll can be costly to your retail business obvious) annual budget changes which P35 returns (February 15th) is incredibly affects payroll. from a time perspective. Gathering important, as is ensuring that your P60s are information about employee’s hours, shifts, And it's not just budgetary changes that you generated and distributed to staff at the ought to be aware of, there are also shift changes, holidays, overtime and beginning of the year. individual benefits takes time. employment rights and NERA Analyse how many hours are spent 4. sicK Pay and compliance to consider as well. gathering information for payroll, preparing disaBility Pay The second last thing you the payroll and running the payroll. Include sick & disability pay is don't want in 2015 (after the admin hours of filing tax returns, one of the most a Revenue penalty distributing wage-slips and answering complex areas pay-out) is a NERA queries from employees. when processing visit. Payroll can You might be amazed at the hours that are payroll. In the assist you with your clocked up especially if you run payroll on a compliance. retail sector, due weekly basis. to the nature of Confidentiality is of employment, you 2 eFFiciency oF Finance staFF do face more key concern when If you do the exercise as outlined in step no. processing payroll. incidences of 1, you will find that payroll is a time- You must have these types of pay. consuming exercise. Removing payroll will 100% peace of mind It's important to get in turn free up your employee’s time, for that best practices are it right. For example, other work better spent in your business. in place. When you where an employee is If you have an in-house accountant or outsource, that entitled to sick pay or 'job accounts clerk doing your payroll, imagine confidentiality is guaranteed. illness benefit' from taking away those hours of doing the payroll Department of social Protection, and spending it more productively on 7. continGency that amount is now taxable and must be preparing and analysing your day to day entered in the payroll system. The onus is PlanninG and monthly accounts. Keeping up to date on you to ensure all payroll deductions are As a business owner, you hope that all your with your financials will help identify monthly correctly applied. staff are in full attendance for work as usual. gross margins and allow you to produce but payroll is a function that needs to be current reports on liquidity ratios, cash-flow 5. holiday Pay entitlements done on a weekly, bi-weekly or monthly statement and KPI’s to name a few. similarly, not all holiday pay is created basis. There is no exception. Your equal. Everyone is entitled to holiday pay employees need to get paid. If your 3. accURacy oF PayRoll and days off, it just depends on how much employee who processes payroll is out sick If you are not doing payroll day in day out, work is done in the leave year and how it is for a few days, then your payroll and your then there is a high chance that you could calculated. It could be 8% of hours worked employees will be affected. get it wrong. The onus is on you as the or 4 weeks off or one third of a working To conclude, it's really your decision to employer to ensure the correct amount of week. And you need to know what days are continue with payroll in-house but make taxes are deducted, in terms of PAYE, PRsI, considered 'working hours'. For example, sure it's an informed one. For most UsC, LPT etc and returned to the Revenue sick hours are not included but maternity businesses, your wage bill is your biggest on time. Getting it wrong opens you up to leave and parental days are. bill, so it's important to get it right. Q1 2015 | Retail times 21
SMOOTHING THE CUSTOMER JOURNEY Now that the Christmas shopping t h e i r frenzy and post festive season home, sales rush is behind us, it’s there was a time to sit back and start growing trend for alternative implementing our delivery locations including resolutions for the year workplace, family or ahead. Getting more friend’s address, store organised generally falls collection, parcel shop into everyone’s top three and locker box. The key things to improve upon. to satisfying the For many of us, we just consumer requirement is want to win back some of to offer a variety of options the time that we waste which the consumer can waiting for things to happen choose from depending on and become more focused on their preferences at a getting the job done. particular time. Up to date communications during the Life is busy and time is a precious ordering and shipping processes commodity. We live in a world ensure that the consumer is always where we want things quickly; Delivery generated aware of the status of their order. In waiting isn’t something that’s Date were the by “people like flight options from the delivery acceptable anymore. Yet the e- top three topics. There is ourselves”. partner is an added bonus. If these consumer’s journey from pre- no single solution that suits all options are provided, once the decision to purchase to receipt of Delivery continues to be a key focal consumers but offering a parcel has arrived with the carrier, their order can be a long and point for the e-consumer and is an reasonable level of flexibility around the consumer can still opt to change arduous one. area that regularly generates strong delivery allows the consumer an delivery date or location. Life Awareness, familiarity, consideration, opinions. When ask what the most element of control. doesn’t go according to plan intent and decision, we know these important options to have at the on- sometimes, and consumers are the steps that happen prior to line checkout, respondents to a The same survey maintained that appreciate having the flexibility to the purchase even being made. For 2014 UPs survey cited that details consumer delivery preferences make last minute changes. many years, that’s where the on Free shipping, Information on were evolving and that while most engagement process stopped. With the Cost of shipping and Estimated e-shoppers still preferred delivery to In autumn 2014, DPD Ireland on line shopping and omni-channel launched DPD Parcel Wizard ™, a retailing now the more free service dedicated to the on-line consumer who receives their commonplace, post-purchase experience, including delivery, has LIFE IS BUSY AND TIME IS A deliveries via DPD’s network of 38 depots throughout Ireland. become a really strong factor in driving customer loyalty. These elements of the customer journey PRECIOUS COMMODITY www.DPDParcelWizard.ie lets the consumer set up delivery schedules require as much focus as any of the through the Parcel Wizard™ steps up to the point of purchase. calendar. The consumer also receives a suite of messaging pre- We’re living in the era of the digital native which leads to more delivery including their Predict™ empowered consumers. Choice is one hour delivery window via sMs available to us at the click of a and email. The Parcel Wizard mouse or the flick of a finger across member engages with DPD directly a tablet screen and the information with regard to their delivery is there 24/7/365. As consumers, preferences reducing customer rather than look to manufacturers or service overheads for the shipper; retailers for overviews of the all the while DPD also keeps the products we’re interested in shipper updated with any changes purchasing, we seek personal relating to the delivery. DPD Parcel feedback from our friends and Wizard™ was awarded a Geopost family via social media. The social Quality and Management Award for media “friend” net spreads far wider sales and Customer Experience than the friends we meet face to Enhancement. The DPD Parcel face every day so access to opinion Wizard initiative was developed is far reaching. Ratings and reviews wholly with the e-shopper in mind, posted by consumers are seen to to smooth the customer journey be more credible as they are being from checkout to doorstep. 22 Q1 2015 | Retail times
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