Nearly half of retailers considering a reduction in hours due to rising costs

The survey was conducted by Retail Excellence also found that 35% are contemplating increasing prices

Retailers have said the potential for redundancies "loom large" as the cost of doing business increases. 

Retailers have called for urgent Government action over the rising cost of doing business as a new survey shows that nearly half are considering reducing operating hours while a third may look to raise prices as they try to make ends meet.

The survey was conducted by the representative association Retail Excellence on 128 retail companies which combined have approximately 3,000 stores across Ireland.

Retail Excellence said there has been an “avalanche” of new policy measures that are putting pressure on businesses including the increase of the minimum wage to €12.70. The organisation said the increase has “introduced major challenges for retailers”.

The Government has increased the number of sick days to five with additional costs, such as the pension auto-enrolment, also coming down the line.

The survey found that nearly half of retailers are considering a reduction in operating hours while another 35% are contemplating increasing prices.

Retail Excellence said due to a raft of measures introduced by the Government, the potential for “operational efficiencies, cost reductions, and, in some cases, employee redundancies loom large”.

Jean McCabe, chief executive of Retail Excellence, said this “avalanche of costs and policy changes” has been “overwhelming for retailers.

"The need for a sustainable business model that protects jobs and supports businesses is crucial. The current trajectory is untenable and the industry needs to be supported before we start to see a wave of store closures," she said.

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Retail Excellence is advocating for fixed policy decisions, particularly in PRSI and Vat adjustments, to provide much-needed certainty and support for the retail sector.

In the wake of the rising cost of doing business, the Government has reiterated that the Cost of Doing Business Grant — which provides up to €5,000 to small and medium sized businesses — will be paid out over the next few months.

Retail Excellence said that the grant is “only a starting point” in addressing issues in the sector.

All this comes as the deadline to pay back tax parked in the Debt Warehousing Scheme fast approaches. Businesses have until May 1 to pay off what they owe to Revenue or agree to a payment plan.

According to Revenue, as of the end of last year, €1.76bn is owed under the scheme of which €158m is covered by payment plans.