‘Mixed fortunes’ for retail sector

A REPORT from Retail Excellence Ireland on the first quarter of the year said it had been “a period of mixed fortunes” and a number of people involved in the sector in Clare have said conditions are very challenging.
Pat Kelly is manager of SkyCourt shopping centre in Shannon and he said that retailers there are trying to consolidate.

 

“It’s a very, very difficult time. Everybody has had to adjust to the difficult times that we’re in at the moment and we as landlords are trying to facilitate tenants who are struggling and we’re trying to work with them as much as possible.

“We have had clothes shops that closed down this week, under a franchise, but we are delighted that they’ll be reopening again in a few weeks time. Another retailer is relocating to a smaller size unit; again it’s an example of tenants trying to keep an eye on their overheads. It’s all about trying to keep costs down and every landlord has to work with their tenants to try and keep things afloat.”

Mr Kelly said the cold weather in March had a negative effect but he said there are some positive signs.

“There was certainly a lack of confidence after Christmas but there’s a bit of positivity coming out in the last week, when you hear ministers talking about a possible end to austerity in the next budget, that’s bound to have an effect.”

Patrick Bourke has clothes shops in Ennis and Kilrush and feels that reverberations from the decision to take money directly from Cypriot bank accounts led to people shopping less in this county. He also feels that the issuing of letters on the property tax had a similar impact.

“January and February were alright, we were up a bit in January, down a bit in February so they balanced out. The first portion of March was alright but then the household tax letters came out, there was the weather and then Cyprus, where money was being taken out of people’s accounts directly. Newly retired civil servants, guards, everyone in that line, would have disappeared off the landscape, they went to ground when those things came out,” he said.

The uncertainty following the rejection of Croke Park II is also hitting spending he believes, while he feels that there are problems all over the country, not just in Clare.

“There’s a network of us who call each other on a weekly basis and all bar one are down by varying degrees. It could be low single figures or high single figures. Even the guy who was doing well in March is finding April harder.”

Mr Bourke says the amount of traffic going past his shop in Ennis is noticeably down, while trade in Kilrush has been a little erratic in recent times and that the impact of the problems being faced by farmers this spring has effected trade in the town.

He added that people have become much more reluctant to use credit cards. “It’s noticeable that debit cards are way more prevalent now than credit cards. If they haven’t got it they’re not spending it. Debit cards first, cash second and credit card third.”

While conditions are challenging he feels it’s important to maintain a positive outlook.

Rita McInerney of Ennis Chamber said that while the start of the year hasn’t been easy, there is reason for hope.

“Businesses are trying to stay optimistic and positive and are looking forward to a good season, hopefully there will be a bit of a boost with things like Communions And Confirmations, people doing up their home and gardening, people may spend a bit more.”