Irish Examiner view: Argos exit should prompt Ireland to face up to retail realities

Challenges facing retailers in Ireland include the cost of doing business and online competition from far beyond our shores 

As well as highlighting the tough conditions for retailers, the closure of Argos in the Republic removes an outlet that has provided reasonably-priced goods to Irish consumers. File picture: John Stillwell/PA

The departure of Argos from the Irish market over the next couple of months is first and foremost a terrible blow to the company’s workers in its 34 stores around the Republic.

Almost 600 people are to lose their jobs following the company’s announcement that the cost of operating in Ireland means it is not viable to invest in modernising its business.

The company has said that it will propose an enhanced redundancy package beyond its statutory obligations, and one hopes that it will follow through on that commitment to its staff.

The departure of Argos has another specific effect on Irish consumers, as it removes an outlet offering a wide variety of goods at reasonable prices. Narrowing the range of options for those trying to stretch their budgets in a cost-of-living crisis is not a welcome development.

This turn of events also shows us the essential fragility of the retail market in the country. Though January is traditionally a challenging time for retail operators, if a well-established firm with strong name recognition and plenty of outlets in Ireland is exiting the market it does not augur well for the sector.

By referring to high rents and the general cost of doing business in Ireland, Argos has specified particular issues which need to be addressed.

The flurry of government statements which follows any wobble in the tech sector should be matched here by a commitment to resolve problems which may drive businesses out of the Irish retail market.