Survey reveals worrying future for Ennis retailers

Those opposed to plans to construct a €34 million retail development on the outskirts of Ennis say that an independent survey conducted by Retail Excellence Ireland confirms their concerns about the proposal and the potential impact of the ‘doughnut effect’ on the town.
Ennis Chamber, Ennis Development Forum, Ennis Street Associations and individual businesses recently made submissions to An Bord Pleanála calling on the planning authority to refuse planning for a retail development by Michael Lynch Ltd on the Limerick Road/Tobairteascain Road, with Tesco set to be the anchor tenant.
While the developers say the plan will create 500 jobs and will make a “positive contribution” to the town, complementing existing business, those against the proposal say the Retail Excellence Ireland survey shows the potential for job losses in Ennis.
The survey was carried out in Naas, County Kildare with the objective of determining the impact the opening of Tesco Extra 12 months ago had on the viability and vitality of its town centre.
Eighty-one retailers were surveyed and asked key questions on their business turnover; whether any decline could be attributed to the opening of the new out-of-town Tesco Extra; job losses in their business since the opening of the new Tesco Extra and has footfall in the town centre been impacted by the Tesco Extra opening.  The results of the survey indicated 94% of the surveyed businesses experienced decrease in their turnover, with nearly half of those decreasing in business by more than15%.
All of the respondents indicated that up to a third of the decline was directly caused by the opening of the new Tesco Extra.  Fifty-six retail jobs have been lost among the 81 stores surveyed since the opening of the new development – that is 70% of the town centre stores suffering job losses.  This finding would appear to verify Retail Excellence Ireland’s previous comments that Tesco and large outlets with a turnover of €100 million a year spends 5.5% of that turnover on staff whilst small and medium retailers in town centres spend 15.5% on staff.  At an average of €25,000 per annum retail salary, this equates to a potential net job loss for the impacted area of 400 jobs.  100% of the 87 stores surveyed viewed that footfall in the town centre had been impacted negatively by the out of town Tesco Extra opening, with two out of three stating that the footfall had dropped by more than 15%.
Responding to the survey, Ennis Chamber CEO, Rita McInerney said,  “Planning authorities and An Bord Pleanála make strategic retail planning decisions in the absence of up-to-date statistics and monitoring on an annual basis, such as existing retail for space, shopping patterns, population growth and town centre health checks which develops and maintains an understanding of how centres are performing and changing over time.  The Mid-West Retail Strategy does recommend annual monitoring of these factors.  In the case of Naas, the survey by Retail Excellence Ireland is helpful in assessing how a large out-of-town developments can impact on a town a year after its opening, along with other factors.  Parking in the town centre has also been an issue for the survival of Naas, along with a decline in footfall and spending.”
The chairperson of Ennis Development Forum, which represents employees and employers, added, “The startling findings of 56 jobs lost in 81 retail businesses in Naas town centre since the opening of the Tesco Extra confirms the human fallout of the doughnut effect. 
“The heart of cities like Limerick and towns up and down the country such as Arklow, Kildare, Tralee, Youghal, Carrick-on-Shannon are decimated as a result of inappropriately sized and located developments.  This also confirms Mary Portas’s recent review commissioned by the Prime Minister of UK on High Streets, which found that the loss of economic activity to out-of-town development has led to social and economic decay.  We cannot allow a similar fate for Ennis.”
Ennis Town Council refused planning permission in January for the development considering the proposal to be “premature” pending the upgrading of the wastewater treatment plant at Clareabbey and the implementation of the Ennis South Flood Relief Scheme.
According to an appeal lodged by Tony Bamford Planning on behalf of Michael Lynch Ltd, “The application was refused for two technical reasons and both can be readily overcome through a series of appropriate and effective engineering solutions.”
While opposers have raised concerns about the ‘doughnut effect’, according to the developers, the proposal “will represent much-needed investment in the Ennis retail market”. The appeal also states the development provides a “key opportunity for Ennis to capitalise on a strategic and under-utilised brownfield site on the southern entry to the town centre.
“The proposal will make a positive contribution not only to the urban fabric of the town but also through the social benefits which will accrue, which include lasting local jobs for local people.”