Small shops need fair play in war against store giants
I am only too well aware of the facts in relation to the independent (non-symbol group) retail sector businesses - your local shop, heretofore the backbone of small towns and rural communities.
I am a self-employed newsagent.
In 2002 I conducted a study entitled ‘Changes in the Traditional Retail Sector: Implications for a Rural Irish Town. A Case Study, Fethard, Co Tipperary.’ This study endeavoured to record the changes that had occurred in the traditional retail sector in Ireland over the previous 30 years and to document the effects of these changes on a rural Irish town.
The findings were startling, to say the least.
Between 1975 and 2002 there was a 59% decline in traditional retail shops in Fethard.
Research undertaken as part of this study indicated that the number of traditional retail shops (grocers, butchers, bakers, drapery, footwear, etc.) in Ireland dropped by 21% between 1988 and 2000, and the number of retail grocery shops dropped by 33% between 1977 and 1998.
It is apparent from these figures that the restrictive practices order did not prevent independent retailers from being driven out of business.
On Tuesday, June 14, 2005, I conducted another study - on the cost of buying one litre of Avonmore milk.
In three major supermarkets in Clonmel - Tesco, Dunnes and Superquinn - I checked the retail price of a one-litre carton of Avonmore milk.
This product was for sale at 85 cent in each of these stores. I then purchased this product at a Centra store. It cost me 89 cent.
Then I checked the invoice which I received from my Avonmore supplier. The wholesale price charged to me was 88 cent for one litre. The retail price was €1.
The price of two litres of the same product was €1.51 in Tesco, Dunnes Stores and Superquinn and €1.65 in Centra.
The cost price to me was €1.76, selling at €2.
Dunnes Stores’ own brand milk was priced at 65c/1 litre and €1.72/2 litres.
These findings prove that the order did not ensure a level playing field for the retail sector.
I am concerned that if current trends continue there will be devastating consequences for rural Ireland.
The effects will be detrimental to small towns where there will be restricted shopping options, a critical lack of commercial vibrancy and possible withdrawal of essential services.
I would like to propose that the order be replaced with alternative legislation that would strengthen the position of independent (non-aligned) retailers in small towns and rural areas.
These retailers provide essential services and their anticipated demise will have far-reaching social implications for this country.
Edwina Newport
Main Street
Fethard
Co Tipperary
