Retail can thrive if Covid supports are there

Retailers feel they can bounce back next year, despite a tough 2021 and the immediate future continuing to look uncertain. 

It’s probably fair to say that most retailers will be glad to see the back of 2021.

After a year once again dominated by the effects of Covid-19, businesses have had to endure months of enforced closures, staffing issues, and a marked drop in footfall in urban centres.

This disruption has been exacerbated by a steep rise in the cost of shipping containers, rising inflation, severe weather events such as Storm Barra, and unwelcome hauliers’ protests that have hit Dublin city, in particular, in recent weeks.

Retail operates ‘hand in glove’ with the hospitality industry and restrictions imposed recently are having an added impact on footfall and on what people buy. Moreover, the significant decrease in festive activity for the hospitality industry this Christmas has hit boutiques and fashion stores hard, in particular.

Duncan Graham, managing director of Retail Excellence: "Despite operating during the worst trading environment in living memory, Irish retail has proven itself to be operating at a truly world-class level."

Next year, it is clear that the cost of goods will rise across the board. Retailers have done everything they can to avoid passing on increases to consumers this Christmas, but it is inevitable that they will have to do so next year in order to make ends meet.

As we look to 2022, however, there is cause for optimism if the right supports are put in place. Despite all the problems that businesses have faced this year, the bounce-back came in May and business was buoyant for most of the second half of the year. Suburban shopping centres and provincial towns and villages benefited the most from savings that had been squirrelled away during the periods of enforced lockdown.

The retail industry is now fully up and running and retailers need staff to meet the increased demand even as we find ourselves staring at an uncertain start to 2022 with the shadow of Omicron looming large.

Once the Covid situation stabilises next year the PUP needs to be wound down quickly and we need to incentivise people to move to this vibrant and dynamic industry. There are careers to be made in retail that are varied, interesting and rewarding and we need to work hard to attract talent.

One of the legacies of the pandemic is a new, inexperienced retail workforce that needs to develop new skills and with that will come opportunities for new ways of doing business. There will be a renewed focus on the customer experience and the best retailers will be the ones who will offer the ‘wow factor’.

It is clear that our cities have suffered most in recent months, with tourist numbers way down and shoppers preferring to stick to suburban shopping centres.

Retail Excellence has consistently called for initiatives from city councils and the Government to get people back to our cities – not only to shop but also to live, work and socialise. We hope to see these calls answered in the year ahead.

Likewise, there are still many vacant commercial properties across the country that could and should be filled by new businesses. Property owners, retailers and local authorities need to work together to attract businesses, fill these units and return our urban centres to places of which to be proud.

Despite operating during the worst trading environment in living memory, Irish retail has proven itself to be operating at a truly world-class level. 

We have businesses that are trying something different and appealing to more than just the local population like Frank’s Place in Wexford. There are also plenty of retailers that have that ‘wow’ factor like Windy Ridge Garden Centre in Dublin and the Retail Excellence Retailer of the Year 2021, Arboretum in Carlow. 

Retailers have proven how adaptable they are and the future will be a blended approach of physical and digital retail. They will continue to safeguard customers and staff regardless of what lies ahead, and we know that customers will continue to support Irish and buy local, even as the trend to online continues.

Now, more than ever, the future is uncertain, but thankfully we have strong foundations on which we can recover and thrive next year.

• Duncan Graham is managing director of Retail Excellence