RETAIL FOR 2015 PREDICTIONS - Q1 2015

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RETAIL FOR 2015 PREDICTIONS - Q1 2015
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           12
          RETAIL
          PREDICTIONS
          FOR 2015
RETAIL FOR 2015 PREDICTIONS - Q1 2015
With thanks to our Corporate Partners
                            2014 | 2015
                                                                                         Welcome                                                                      to the Quarter 1 2015
                                                                                                                                                                      edition of Retail Times
                                                                                         I very much hope that Christmas 2014 delivered for each and every member. The speculation was that we would enjoy a robust trading period but this can
                                                                                         sometimes disguise a very challenging trading situation being experienced by many members and especially those located in provincial Ireland.
                                                                                                                           It is clear that retail is gradually moving up the Government agenda. Last year, after intensive lobbying by REI we witnessed
                                                                                                                               the establishment of the Government Retail Consultation Forum. Chaired by Minister Gerard Nash, and with
                     for their support of                                                                                         representation from most Government departments, this Forum provides us with a vehicle to articulate your
                                                                                                                                    concerns and feed directly into the construction of the annual Budget. The Forum meets four times a year and
    Retail Excellence Ireland and the Irish Retail Industry                                                                           throughout 2015 it is our intention to host a member luncheon directly after each meeting to share progress
                                                                                                                                       with members, and most importantly, to listen to your concerns and feed these back at the next meeting.
                                                                                                                                        We are very much looking forward to the annual REI Retail Retreat. This year’s Retreat is schedule for 12th and
                                                                                                                                            13th May at Carton House, Kildare. This is a great opportunity for members to get together and enjoy
                                                                                                                                            contributions from a wide variety of speakers. I would urge you to pencil the dates into your diary and join
                                                                                                                                             us for what will be two days of valuable insights and invaluable networking.
                                                                                                                                               We are currently working hard to construct a very practical and beneficial Retail Certificate in partnership
                                                                                                                                              with National College of Ireland. I would like to thank Paul Candon of Topaz for leading the retail steering
                                                                                                                                                     group who are constructing the programme. The Certificate is being designed by retailers for
                                                                                                                                                          retailers and will be made more accessible for all members by having a large proportion of
                                                                                                                                                                the content available online.
                                                                                                                                                                  The Board and Council of REI have also decided that our industry awards programme
                                                                                                                                                                       requires an overall. To that end we are working to change the assessment process.
                                                                                                                                                                          In 2015 all store entrants will now undergo a stage one store assessment
                                                                                                                                                                             meeting. This assessment will be conducted by one of four qualified store
                                                                                                                                                                              assessors. Additionally we have decided to award excellence on a sectoral
                                                                                                                                                                              basis. We believe this will resonate greatly with consumers and thus award
                                                                                                                                                                            winners and finalists will benefit from enhanced footfall and sales.
                                                                                                                                                                          As you are aware, REI is a not for profits organisation with a superb executive
                                                                                                                                                                        team. The team reports into a member Board. It is very important that the Board
                                                                                                                                                                      is representative of all members, small and large, urban and rural. It is thus with
                                                                                                                                                                    great pride that I can confirm the appointment of Roisin Woods, McElhinneys and
                                                                                                                                                                 Patrick McCormack, Sam McCauleys to the REI Board. Both exemplify retail excellence
                                                                                                                                                              and I look forward to working with Roisin and Patrick over the coming years. I would also
                                                                                                                                                          like to thank Mairead Horkan, Horkans Garden Centres and Petworld who has retired from the
                                                                                                                                                    Board. Thank you Mairead for you invaluable time and dedication in recent years.
                                                                                                                                              It is with the greatest of pleasure that I can also confirm that Colm Carroll, Chairman Carrolls Irish Gifts
                                                                                                                                              has been selected to become REI Chairman in 2016 | 2017. Colm is an absolute gentleman and I can think
                                                                                                                                              of no one better to lead our fine organisation into the future. I am sure you all join me in congratulating
                                                                                                                                              Colm on his appointment.

                                                                                                                                                                                                             Yours sincerely,
                                                                                                                                                                                                             Oonagh O’Hagan
                                                                                                                                                                                                             OONAGH O’HAGAN
                                                                                                                                                                                                             Managing Director, Meagher’s Pharmacy Group

                                                                                                                            OONAGH O’HAGAN
                                                                                                                            CHAIRPERSON, RETAIL EXCELLENCE IRELAND

    Research                                           Title Awards
    Partners                                              Partner

                                                                                                                                    Retail excellence iReland BoaRd MEMbERs
                                                                                                 BOARD: Oonagh O’Hagan, Meaghers Pharmacy Group • Keith Rogers, Ecco Footwear • Paul Kealy, Tony Kealys • Jacquie Marsh, The Butler’s Pantry •
                                                                                                    JP Kennedy, TileStyle • Colm Carroll, Carrolls Irish Gifts • Paul Cahill, Vodafone • David Myers, Heatons • Patrick McCormack, Sam McCauleys •
                                                                                                                      Roisin Woods, McElhinneys • David Fitzsimons, Retail Excellence Ireland • Seán Murphy, Retail Excellence Ireland

                                                                                                           TRUSTEE: Sharen McCabe, McCabes Pharmacy Group • Kevin Jephson, Ardkeen Quality Food Store • Paul Candon, Topaz Energy
2                                                              Q1 2015 | Retail times   Q1 2015 | Retail times                                                                                                                                                3
RETAIL FOR 2015 PREDICTIONS - Q1 2015
COLM CARROLL ANNOUNCED                                                                                                                                                                                      MINISTER ANNOUNCES ZERO HOUR CONTRACTS SURVEY

                                                                                                   The
Bites
                                                                                                                                                                                                                                                                The Minister for business and Employment, Gerard Nash TD, has issued a call for
                                                   AS REI CHAIRMAN DESIGNATE

                                                                                                       n ew
                                                                                                                                                                                                                                                                  tenders to carry out a study into the prevalence of zero hour and low hour contracts

                                                                                                            Butler
                                                                                                                                                                                                                                                                   and the impact of such contracts on employees. Zero hour contracts of employment

                                                                                                                  s Chocolate Cafe in the Crescent S
                                                                                                                                                                                                                                                                   are contracts typically where the employee is available for work but does not have
                                                                                                                                                                                                                                                                   specified or guaranteed hours of work. It is expected that the survey will collect
    south Korean manufacturer lG’s most                                                                                                                                                                                                                            information on the extent of these contracts, the manner in which they are used and
    advanced smart refrigerator has a built-in
    camera that allows owners to see what’s in
                                                                                                                                                                                                                                                                   also to look at recent developments in other jurisdictions, particularly in the UK. The
    the fridge as they stand in the aisle of a                                                                                                                                                                                                                    study will also focus on how these contracts operate in practice and particularly on how
    supermarket, phone in hand.                                                                                                                                                                                                                                  they impact on employees. It will assess the advantages and disadvantages from the

                                                                                                                                                    hopp
                     One of the most visually
                                                                                                                                                                                                                                                                perspective of employer and employee and assess the current employment rights                                Minister Gerard Nash is to

                                                                                                                                                         ing
                                                                                                                                                                                                                                                              legislation as it applies to employees on zero hours contracts. Minister Nash said, “We

                                                                                                                                                             Cen
                      stimulating stores visited                                                                                                                                                                                                                                                                                                                                      conduct a survey

                                                                                                                                                                 tre,
                       as part of the recent Rei                                                                                                                                                                                                            are seeing increasing debate both here at home and further afield on zero hour contracts.                     investigating the prevalence

                                                                                                                                                                      Lim
                         retail safari in London                                                                                                                   ick
                                                                                                                                                                                                                                                          but, there is a distinct lack of hard data in Ireland on the prevalence of zero hour contracts

                                                                                                                                                                         er
                                                                                                                                                                       brin                                                                                                                                                                                                       of zero and low hour
                         was anthropology,                                                                                                                                  gs   the                                                                en   and low hour contracts and the impact they have on workers. We are addressing this
                          Regent street. Their                                                                                                                                       n   umb
                                                                                                                                                                                            er of                                           s evente                                                                                                                                   contracts in the
                         living wall is superb.                                                                                                                                                     Cafes op                          nd to              information gap through this study”.
                                                                                                                         throughout                                                                         erated by Butlers in Irela                                                                                                                                        Irish economy in Q1 2015
                       mellericks Pharmacy in                                                                            2015 and will
                     Fermoy has recently
                   moved to new premises in the
                                                                                                                         work hard to ensure REI continues to
              town. The new store is superb and                                                                          grow from strength to strength.”                                                                                                     WE ARE SEEING INCREASING DEBATE BOTH HERE AT HOME AND FURTHER
    a must visit.
                                                                                                                         NEW BUTLERS                                                                                                                                          AFIELD ON ZERO HOUR CONTRACTS
                                                   Colm Carroll will become REI Chairman for the                         CHOCOLATE CAFÉ
                                                   2016 | 2017 period                                                    OPENING IN LIMERICK                                                                                                                                                                                                          Topaz, Ireland’s largest convenience and fuel
                                                   Colm Carroll, the Chairman of Carrolls
                                                                                                                        butlers Chocolates recently opened                                                                                               TOPAZ ANNOUNCE TWO MAJOR NEW SERVICE STATIONS                                                retailer has announced that it will create 110
                                                                                                                        their newest Chocolate Café in the                                                                                                                                                                                            new jobs between two major new service
                                                   Irish Gift stores has been announced as
                                                                                                                        Crescent shopping Centre, Limerick.                                                                                                                                                                                           stations opening in North Dublin and County
    We noticed this great sign in                  Chairman        designate    of   Retail
                                                                                                                        This brings to seventeen the number of                                                                                                                                                                                        Laois in January. The two stations are being
    the colour store,                              Excellence Ireland for the period 2016 |
    Dungarvan recently. Well                                                                                            butlers Chocolates Cafes now                                                                                                                                                                                                  developed at a cost of €10 million. In addition
                                                   2017. speaking about the appointment
    done shane – you can’t beat                                                                                         operating in the Republic of Ireland.                                                                                                                                                                                         to the full time jobs being created, an
    a bit of retail humour –                       David Fitzsimons, Chief Executive,
                                                                                                                        speaking on behalf of butlers                                                                                                                                                                                                 additional 200 people are employed on the
    “Husbands MUsT have a                          Retail Excellence Ireland said “REI has
    note from their wives before                                                                                        Chocolates, Michelle Mcbride, Retail                                                                                                                                                                                          development of the sites which will include
                                                   a policy of selecting board members
    selecting colours”!                                                                                                 Director, commented on the opening                                                                                                                                                                                            service stations, restaurants and shops. One
                                                   who epitomise retailing excellence.
                                                                                                                        saying; "We are delighted to be opening                                                                                                                                                                                       of the stations is located at Junction 3,
    A group of dunnes stores workers brought       Colm’s       selection   as   Chairman
                                                                                                                        our first butlers Chocolate Café in                                                                                                                                                                                           adjacent to where the M50 meets the M1 at
    a claim to the Labour Court in October 2014    designate is a wonderful development
    relating to their work and pay conditions.                                                                          Limerick and we are excited about our                                                                                                                                                                                         Clonshaugh in North County Dublin while the
                                                   for REI. Colm has always been
                                                                                                                        expansion into the mid-west region. We                                                                                                                                                                                        other is at Junction 3 on the Dublin Cork
                                                   tremendously supportive as a member,
                                                                                                                        look forward to welcoming new and                                                                                                                                                                                             motorway near ballacolla in County Laois.
                                                   a board member and now as our future
                                                                                                                        existing customers and to bringing the                                                                                                                                                                                        both stations will open in January next. Paul
                                                   Chairman. The board were unanimous
                                                                                                                        full butlers Chocolate experience to a                                                                                                                                                                                        Candon, Marketing and Corporate services
                                                   that Colm is the best person to lead
                                                                                                                        new customer base."                                                                                                                                                                                                           Director at Topaz said “Topaz is in job
                                                   REI. He epitomises all that is great
                                                   about retail. both I and the REI team                                                                                                                                                                                                                                                              creation and expansion mode and we are
                                                   are looking forward to supporting Colm                                                                                                                                                                                                                                                             constantly looking at sites with good potential
    During a recent Rei trip to a retail tech
    conference in Lille, leading French grocery    in his role”. Colm added “being selected
                                                                                                                                WE ARE EXCITED ABOUT                                                                                                                                                                                                  – particularly near motorways. Our award
    chain auchan kindly hosted a tour of their     to take up the mantle of Chairman of                                                                                                                                                                                                                                                               winning sites at Dublin Airport and Cashel
    stores. We were impressed with their service
                                                   REI for the 2016 | 2017 period is a
                                                                                                                                 OUR EXPANSION INTO                                                                                                                                                                                                   have been extremely successful and we
    allowing customers to have their online
                                                   tremendous honour for me. I look                                                                                                                                                                                                                                                                   expect these new sites to be likewise. We
    purchases delivered to their local Auchan
    store for collection.                          forward to working alongside our
                                                                                                                                THE MID-WEST REGION                                                                                                                                                                                                   are actively looking for new sites and
                                                   current Chairwoman Oonagh O’Hagan                                                                                                                                                                     Paul Candon, Deirdre Bruton, Jonathan Diver all of Topaz announcing expansion plans for 2015 locations across the country."

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RETAIL FOR 2015 PREDICTIONS - Q1 2015
LIFE PHARMACY PASSES THE FORTY MARK
Bites
                                                                                                                                                      since its launch in April, the Life Pharmacy symbol group has grown rapidly
                                                                                                                                                      having just passed the forty members mark in December. The symbol
                                                                                                                                                      group is a partnership between independent pharmacists and the
                                                                                                                                                      wholesaler Uniphar, where all pharmacy members, also become
                                                                                                                                                      shareholders of the life pharmacy company. Paul spiller Group Manager
    Rei has commissioned research to                                                                                                                  said “Our successful formula of providing valuable services at low cost
    investigate issues pertaining to retailing in
    border counties and to also review visitor                                                                                                        has fuelled this rapid membership growth. With an ever increasing range
    perceptions of the retail offering and value in                                                                                                   of supports coming on stream, I would expect the rapid growth rate to
    belfast and Dublin markets. The findings will                                                                                                     continue right through 2015”
    be available in early January.
    A group of applegreen executives recently
    completed the New York marathon all in aid
    of Crumlin Hospital. Well done to Joe barrett,
    Keith Ennis and the team.
                                                                                                                                                             SERVICES AT LOW COST HAS FUELLED
                                                                                                                                                              THIS RAPID MEMBERSHIP GROWTH
                                                                                                                                                                                                                                                                                                      nd
                                                                                                                                                                                                                                                                                            oss Irela
                                                      An Taoiseach Enda Kenny TD, Oonagh O’Hagan, REI Chairwoman and MD Meagher’s Pharmacy Group                                                                                                                                          cr
                                                                                                                                                                                                                                                             Life Pharmacy Group expands a
                                                      and REI Chief Executive David Fitzsimons were on hand to launch Small Business Saturday.                                  Some of the most famous models in the world
                                                                                                                                                                                                      touchdown in London
                                                      AN TAOISEACH LAUNCHES SMALL BUSINESS SATURDAY                                                                                                                           VICTORIA’S SECRET
                                                      Retail Excellence Ireland recently launched an initiative to support small
    ted Baker outperformed the market by
                                                      independent retailers. The small business saturday campaign built up to
                                                                                                                                                                                                                              LONDON SHOW FIRST
    recording a 12.7% like for like climb in sales    December 6th last and endeavoured to get consumers to shop local for one day                                                                                            For the first time ever Victoria’s secret held their annual
    for the thirteen weeks to November 8th. Most      in the run up to Christmas 2014. The initiative was supported by bobby Kerr’s                                                                                           extravaganza in London December last. The show which
    other fashion retailers suffered through a                                                                                                                                                                                is broadcast to over one hundred and fifty countries is
                                                      Down to business programme on Newstalk which hosted a special segment on
          period of unseasonably clement
                weather.                              the 6th interviewing independent retailers around the country. The campaign was                                                                                         the fashion equivalent of the superbowl. some of the
                                                      a success with many independent members stating that their local towns received                                                                                         world’s leading models were accompanied by performers
                  We understand that the newly
                   opened ecco store in               a significant boost in trade.                                                                                                                                           such as Taylor swift, Ariana Grande, Ed sheeran and
                     Limerick City Centre is                                                                                                                                                                                  Hozier. The lingerie company flew in the models on a
                     trading extremely well. A                                                                                                                                                                                specially chartered flight which caught the attention of the
                     good indicator for other
                     progressive retailers
                                                      COUNTY CLARE RETAILER OF THE YEAR ANNOUNCED                                                                                                                             UK media. The show commenced in 1995 and has grown
                    planning to open in the city      Ennis retailer Madden Furniture                                                                                                                                         to be one the largest of its type in the world.
                   in 2015.                           recently scooped the coveted
                  Rei and some other trade            County Clare retailer of the year
               associations have come together to
       commission Behaviour & attitudes to
                                                      gong at the annual FbD Ennis                                                                    CENTRAL EUROPE ONLINE SALES SPURT
    conduct an assessment of the impact of            Chamber of Commerce awards.                                                                     With an average growth rate of nearly 23% in 2013, the e-
    aggressive begging in Dublin City on footfall     Founded in 1977 the retailer is                                                                 commerce market in Central Europe is showing no signs of
    and shopper behaviour. We will profile the        one of the most progressive in
    findings in January.                                                                                                                              slowing. This development is far above the average European
                                                      Ireland. speaking after the win                                                                 growth of 17.5%. At €93.3 billion, Central Europe accounts for
    Rei is a member of the lUas cross city
    Work Group. We are working hard to ensure
                                                      company managing director                                                                       25.7% of e-commerce sales in Europe. Last year, 68 million
    that Dublin City Centre is as accessible as       Michelle Madden said “To be                                                                     of the 165 million Central European citizens bought goods and
    possible during the construction phase.           selected as the best retailer in                                                                services through the Internet. Germany is still by far the largest
    spar Gourmet, Merrion Row, Dublin was             County Clare is a great                                                                         e-commerce country in the Central European region. With its
    recently selected by leading UK Retail            achievement for the business. It is                                                             e-commerce turnover of €63.4 billion, it accounts for 68% of
    journal Retail Week as their store of the
    week. Well done Thomas!
                                                      great to be acknowledged having                                                                 the region’s total e-commerce turnover. At 86%, internet
                                                      invested significantly in the                                                                   penetration in Germany is very high, and consequently the
    3 ireland have announced the appointment
    of Johnston shopfitters in their rebranding       business in recent years. I am                                                                  country has the largest online population in Europe. Central Central European customers spend €1,379 each online in 2013
    of over forty stores nationwide. 3 Ireland said   particularly delighted for our Michelle and Aoife Madden (seated left and centre)               European consumers spent on average €1,379 per person
    “it is great to be working with an Irish          dedicated and hard working celebrate their recent selection as Clare retailer of the            online in 2013. This is over €100 more than in 2012 and a little more than the European average of €1,376. However, it is less
    company again”.
                                                      team”.                              year                                                        than the EU28 average of €1,500. With an average amount of €2,122 per person, Austrians spent most online in 2013.

6                                                                                                                            Q1 2015 | Retail times   Q1 2015 | Retail times                                                                                                                               7
RETAIL FOR 2015 PREDICTIONS - Q1 2015
PETER O'BRIEN NEW
                                                     TOWNS TEAMS PAY OFF OVER
Bites                                                CHRISTMAS 2014
                                                     The establishment of Town Teams and
                                                                                                                                                                                             ACCESSORY COLLECTION
                                                                                                                                                                                              FOR ARNOTTS
                                                     business Improvement Districts (bIDs)                                                                                                        Peter O’brien recently launched a
                                                                                                                                                                                                 new accessory collection for
    During a recent visit to lille we noticed this   has proven to pay off for local
                                                                                                                                                                                                 Arnotts. The launch also saw the
    innovative merchandising of washing              businesses over the Christmas 2014
                                                                                                                                                                                                 designer collaborating with Irish
    machines.                                        period. Many Town Teams created                                                                                                            milliner John shevlin to present
                                                     specific plans to enhance footfall and

                                                                                                                     Place
                                                                                                                                                                                               hats in his accessory collection for
                                                     consumer activity in their towns, with many

                                                                                                                          s lik
                                                                                                                                                                                              the first time. The collection boasted

                                                                                                                               e Li
                                                     others creating investment prospectuses to                                                                                             three silk scarves, which feature a

                                                                                                                                   mer
                                                                                                                                  ick
                                                     drive retail investment and occupancy. Of            ved                                                                             selection of drawings from his theatre

                                                                                                                                         pro
                                                     specific benefit was the willingness of many             tha
                                                                                                                 t th                                                                   costume drawings. One scarf focuses
                                                                                                                     e es
                                                     Local Authorities to work with Town Teams and                       tabl
                                                                                                                             ishm                                                     solely on ball gowns, while another focuses
                                                                                                                                                                                014
                                                     offer car parking promotions over the December                               ent of
                                                                                                                                         a Town Tea                C hristmas 2       on ladies and men’s costumes. speaking
                                                                                                                                                   m paid-off over
                                                     period. Limerick and Galway were two such examples with                                                                          about the scarf collection, Peter said: “As I
                                                     both cities offering extensive free car parking periods in the run up                                                            have been designing for the theatre for the
                                                     to Christmas 2014. speaking about the development Cormac Kennedy, Eason and                                                      last twelve years I have a huge archive of
    american eagle has opened three stores in                                                                                                                                         drawings and people are very interested
    quick succession in the United Kingdom. The      Chairman of the REI Town Revival Group said “It is really pleasing to see local Town                                                                                                 Allcare fundraising initiative benefits a very worthy cause
    stores are located at Westfield stafford,        Teams working in such a collaborative manner with Local Government. Through such                                                 about the whole design process and are
    Westfield London and bluewater in Kent.                                                                                                                                           curious about looking at my sketches.”
                                                     collaboration everyone wins. businesses enjoy enhanced footfall and spending while
                                                     the Local Authority retain and grow their rates base.”                                                                                                                               CORK ALLCARE PHARMACIES CHARITY INITIATIVE
                                                                                                                                                                                                                                          sixteen well-established Cork pharmacies, all members of Allcare Pharmacy, a 100%
                                                                                                                                                                                                                                          Irish owned network of 64 community pharmacies, recently teamed up with Marymount
                                                                                                                                         BROWN THOMAS AND THE                                                                             Hospice for a fundraising initiative to benefit the local community. The aim of the charity
                                                                                                                                                                                                                                          initiative was to raise funds for the purchase of two new community care cars for
                                                                                                                                         BUTLER’S PANTRY TIE-UP                                                                           Marymount Hospice, which enables them to provide vital support to the seriously ill.
                                                                                                                                         brown Thomas welcomed The                                                                        Through the combined donations of customers in the Cork pharmacies, a €30,000 target
                                                                                                                                         butler’s Pantry into store over                                                                  was exceeded, with a total of €31,118 raised for this very worthy cause. Commenting
                                                                                                                                         December 2014 with the leading                                                                   on the charity initiative, Tony McEntee, CEO, Allcare Pharmacy said; “Allcare is a
                                                                                                                                         artisan food producer opening                                                                    nationwide network of long established community pharmacies where the local
                                                                                                                                         concessions in a number of brown                                                                 community is at the centre of everything we do. Consequently, we are delighted that
                                                                                                                                         Thomas stores. The partnership                                                                   Allcare Pharmacies could use its countywide network of 16 pharmacies to support
                                                                                                                                         proved to be a real winner. Jacquie                                                              Marymount’s vital community palliative care service and most
                                                                                                                                         Marsh,       The   butler’s   Pantry         Peter O’Brien brings an exclusive and tantalising   importantly we want to thank all our customers who generously
    We felt a bit old recently when we shared a
    bottle of vino with the next generation of                                                                                           Managing Director said of moving             collection to Arnotts                               donated to this very worthy cause.”
    retail. Martin McElhinney of mcelhinneys                                                                                             into brown Thomas, “We were
    and Keelan bourke of Patrick Bourke
    menswear catch-up following a visit to the
                                                                                                                                         delighted to bring a premium Irish
                                                                                                                                         handmade selection to brown                                                                               NEW BODYSHOP STORES                                             LOCAL
    National Tailoring Academy.                                                                                                          Thomas where we showcased the
                                                                                                                                         most popular foods in our Christmas,                                                                      PROVE SUCCESSFUL                                            COMMUNITY
                                                                                                                                         gift and hamper range. Edel Woods,                                                                        The bodyshop Ireland recently opened new
                                                     The Butler’s Pantry Brown Thomas concession stores                                  brown Thomas said, "We were                                                                               stores in Cork, Limerick and Dublin just in                   IS AT THE
                                                                                                                                         delighted to welcome The butler’s                                                                         time for the busy Christmas period. The
                                                     proved a real winner over Christmas                                                 Pantry Christmas pop-up to brown                                                                          stores enjoyed a very robust trading period                  CENTRE OF
                                                                                                                                         Thomas. The integrity of The butler’s                                                                     over December. speaking at the launch,
                                                                                                                                         Pantry brand and what they stand for
                                                                                                                                         reflects brown Thomas perfectly in
                                                                                                                                                                                                                                                   Peter McDonald, Managing Director, The                      EVERYTHING
                                                                                                                                                                                                                                                   bodyshop Ireland said “We were delighted to
                                                          SHOWCASED THE MOST POPULAR                                                     terms of service and quality of                                                                           open this new store in the heart of Cork, Dublin                WE DO
                                                         FOODS IN OUR GIFT AND CHRISTMAS                                                 product offer.” The tie-up also                                                                           and Limerick City Centres. The stores include lots
    Galvin For men Tullamore have recently                                                                                               provided The butler’s Pantry with its                                                                     of recent store design enhancements and the reaction
    completed a refit of their store. The results
    are first class. Well worth a visit.
                                                                  HAMPER RANGE                                                           first retail exposure outside of the         The Bodyshop openings proved great additions to              from consumers has been second to none. We are
                                                                                                                                         Dublin market.                                                                                            planning some further store openings in 2015”.
                                                                                                                                                                                      the high streets in Limerick, Cork and Dublin

8                                                                                                                                                         Q1 2015 | Retail times      Q1 2015 | Retail times                                                                                                                       9
RETAIL FOR 2015 PREDICTIONS - Q1 2015
EXAMINERSHIP PROVES THAT                           REI LAUNCH ECOMMERCE
the NUMBERS                                       WE ARE DELIGHTED TO BE EXPANDING THE                                                                                     WE ARE NOT OUT OF                                  KNOWLEDGE DASHBOARD
                                                  CARRAIG DONN BRAND IN THESE REGIONS                                                                                      THE WOODS                                          Retail Excellence Ireland, in
                                                                                                                                                                                                                              partnership with studioForty9,
              The dates in May 2015 when REI
  12&13       host the annual Retail Retreat
                                                                                                                                                                           The recent examinership of the Karen               has announced the launch of an
                                                 CARRAIG DONN EXPANDS                                                      SKECHERS SHOW NO SIGNS                          Millen group of companies proves that
                                                                                                                                                                           many retailers remain in a distressed state,
                                                                                                                                                                                                                              e-Commerce           Knowledge
                                                                                                                                                                                                                              Dashboard. The eCommerce
              The average basket value in        ITS RETAIL FOOTPRINT                                                      OF SLOWING DOWN                                 many of whom are struggling with onerous
                                                                                                                                                                           Celtic tiger rent costs. Commenting on the
                                                                                                                                                                                                                              Dashboard aims to foster
                                                                                                                                                                                                                                                                The new REI Dashboard will allow participants compare their
                                                 Carraig Donn, the leading Irish retailer,                                                                                                                                    knowledge and understanding
     130      pounds sterling at UK retailer
              Majestic Wine                      recently opened a further four new stores
                                                                                                                                                                           development David Fitzsimons, Chief
                                                                                                                                                                                                                              of e-Commerce Analytics and
                                                                                                                                                                                                                                                                performance with a benchmark group
                                                                                                                                                                           Executive, Retail Excellence Ireland said
                                                 bolstering its position in the Irish market.                                                                                                                                 Data among members. Commenting on the launch Jayne O’Driscoll, REI
                                                                                                                                                                           “We are aware of a number of large retail
                                                 The new stores located at Arklow,                                                                                                                                            eCommerce Executive said “The dashboard will help our eCommerce members
                                                 Dundalk, Waterford, and Navan led to the
                                                                                                                                                                           companies who are planning a
              The like for like percentage                                                                                                                                 reorganisation of business affairs in early        to analyse the performance of their e-Commerce site within a controlled peer
                                                 creation of 50 new jobs, bringing the total
     179      increase in Smeg cookers sales
                                                 number of employees in the group to 450.                                                                                  2015. No matter to what degree the                 group. This data will be unique in Ireland and will help participating members to
              at John Lewis during November
                                                 Carraig Donn Chief Executive Pat Hughes                                                                                   economy recovers, these companies                  understand the trends and standards derived from statistics which are directly
                                                 said ‘We are delighted to be expanding                                                                                    simply cannot sustain commercial rent              relevant to their business and market. It will also help to drive a programme of
              The average Euro amount spent      the Carraig Donn brand in these regions                                                                                   costs which increased by 240% between              eCommerce education based on an analysis of data gathered as part of this
              by visitors to Ireland according   and creating much needed jobs in the                                                                                      the years 2000 and 2007, a period when             initiative.”
   1,142      to recent research conducted by    local area. We are looking forward to                                                                                     consumer prices increased by 30%. What
                                                                                                                                                                           is particularly concerning is the number of
              REI and NIIRTA                     welcoming new customers in these
                                                 regions and this announcement marks the                                                                                   small business owners who continue to              WIR CHRISTMAS GET TOGETHER
                                                                                                                                                                           suffer from the burden of personal                 The REI Women in Retail Network hosted their annual Christmas get together in the
              The percentage of Littlewoods      beginning of another great chapter in the
                                                                                                                                                                           guarantees tied to these onerous leases.”          Kilkenny Shop, Nassau Street on December last. The evening was hosted by Marian
                                                 Carraig Donn story, as we embark on our
     52       purchases which are made on a
                                                 50th year in business’’.                                                                                                  It is hoped that the Karen Millen group of         O'Gorman, CEO of Kilkenny Group. Marian spoke passionately about her life in retail
              mobile device                                                                                                                                                companies        will    successfully   exit       and provided members with some helpful insights into her success.
                                                                                                                                                                                                                              Celebrity Stylist Lorna Claire Weightman also joined the evening's
                                                                                                                                                                           examinership in early 2015.
                                                                                                                                                                                                                              festivities. She brought along some beautiful models and
              The date in December when                                                                                                                                                                                       showcased How to Make Your Work Wardrobe Work For You.
                                                                                                                               Stock market analysts recommend a buy of
     6        Ireland enjoyed its first ever
              Small Business Saturday                                                                                             Skechers stock
                                                                                                                                                                                                                              The night ended with an exclusive VIP experience in the Kilkenny
                                                                                                                                                                                                                              store along with great conversation and networking opportunities. A
                                                                                                                                                                                                                              wonderful night was had by all.
                                                                                                                                      2014 proved a very productive
              The number of REI members                                                                                                year for iconic footwear brand
              who are participating in the                                                                                               skechers. Not only has the
     40       new     REI     eCommerce                                                                                                  company grown its retail
              Dashboard                                                                                                                   presence in Ireland, globally
                                                                                                                                          it has also over achieved.
              The like for like percentage                                                                                                skechers proved to be one
                                                                                                                                                                           Many other retailers are planning a
                                                                                                                                          of the top performing stock
     1.8      decline in recent Walmart
              sales excluding petrol                                                                                                     market stocks globally in
                                                                                                                                                                           reorganisation of their leases in 2015
                                                                                                                                         2014 recording gains of 76%

              The percentage of Dubliners
                                                                                                                                        year to date. Market analysts      WE ARE AWARE OF A NUMBER
                                                                                                                                      have become very bullish
              who believe that aggressive                                                                                            about     sketchers     with     a    OF LARGE RETAIL COMPANIES
     90       begging in our capital city is                                                                                       significant number making buy              WHO ARE PLANNING A
              deterring customer visits                                                                                         recommendations. The analyst’s
                                                  rai
                                                                                                                                                                               REORGANISATION OF
                                                 Car

                                                     gD                                                                       position is founded on growing market
              according to recent research             onn
                                                             con                                                           share and strong sell through of
              commissioned by REI                                tinu
                                                                      e to
                                                                             grow                                          innovative product ranges leading to
                                                                                                                                                                                BUSINESS AFFAIRS
                                                                                  with   the addition of four new stores   earning per share growth of a whopping                 IN EARLY 2015
                                                                                                                           500%.                                                                                               Women in Retail Christmas Get Together

                                                                                                                           SOME TOP 2014
JANUARY - We led a member delegation to the        APRIL – We spent four days with a great group
                                                                                                                           MOMENTS IN                                                                APRIL – We facilitated the formation of many town AUGUST - The World Garden Centre Congress   SEPTEMBER – Granny
Big Retail Show New York….                         of Retail Managers….                                                                                                                              teams nationwide including this one in Bray….     came to Ireland….                           came to Limerick….

10                                                                                                                                                Q1 2015 | Retail times   Q1 2015 | Retail times                                                                                                                       11
RETAIL FOR 2015 PREDICTIONS - Q1 2015
A TREND WHICH IS CERTAIN TO

          12
                                                                                                                                                                            CONTINUE AS THE ECONOMY
                                                                                                                                                                             IMPROVES IN 2015 IS OUR
                                                                                                                                                                              GROWING FONDNESS TO
                                                                                                                                                                           INCLUDE FOOD AS A CENTRAL
                                                                                                                                                                              PART OF OUR SHOPPING

                                                                                                                                                                      ed
                                                                                                                                                                                   EXPERIENCE

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                                                                                      many val                            ark | Pen
                                                                                               ue retailers such as Pr i m

    RETAIL
                                                                                                                                                                                      abusing the incentive. What Minister
                                                THE PUSH TO POSH BREAKING                                                                                                             Noonan failed to do was look at the
                                                                                                                                                                                      economy holistically. It is my contention

                                                                                                                                 BREAD
                                                It is undeniable that many of the value                                                                                               that there are in fact three economies in
                                                retailers, particularly in fashion, have                                                                                              retail today. The Dublin evening economy
                                                created store environments which could                                                                                                is powering ahead and shows no signs of
                                                be mistaken as luxury stores. Penneys |                                                                                               slowing down. This economy has been
                                                                                                                                 A trend which is certain to continue as the          enhanced by increased visitor numbers to
                                                Primark is an obvious case in point.
                                                                                                                                 economy improves in 2015 is our growing

    PREDICTIONS
                                                Furthermore the luxury fashion stores                                                                                                 our capital city. The second economy is
                                                                                                                                 fondness to include food as a central part           the Dublin daytime economy. This is at
                                                have responded and upped their game by
                                                                                                                                 of our shopping experience. Whilst                   best flat at present. The Dublin daytime
                                                redesigning their retail footprints to
                                                                                                                                 midweek shopping is all about                        economy continues to suffer from anti-
                                                become ultra decadent. This push to posh
                                                                                                                                 convenience, and thus we seek out                    social issues and weekly protests which
                                                at either end of the market has impacted
                                                                                                                                 convenient eating opportunities, the                 according to AA reports make the city a no
                                                significantly on the squeezed middle
                                                                                                                                 weekend is all about experience. Hence

    FOR 2015
                                                market retailer. This trend will continue in                                                                                          go area. The third economy is everyone
                                                                                                                                 we will continue to witness retailers                else outside of the M50 – provincial
                                                2015.
                                                                                                                                 knitting food into the shopper’s day out.            Ireland if you like. This economy continues
                                                                                                                                 The department stores continue to add                to struggle primarily due to emigration.
                                                                                                                                 square footage to eat in food, the garden            The divide between the three is likely to
                                                                                                                                 centres have become retail and dining                grow in 2015.
                                                                                                                                 destinations and soon we will see other
                                                                                                                                 retailing destinations do likewise. Recent
                                                                                                                                 space allocation changes at Avoca best
                                                                                                                                 demonstrates this trend. The majority of
                                                                                                                                 this progressive Irish retailer’s footprint is
                                                                                                                                 now dedicated to eat in and take out food.
                                                                                                                                                                                      BIG DATA MAN
                                                                                                                                 Don’t be surprised when in 2015 we begin             Many retailers now realise that their epos
             With 2015 upon us,                                                                                                  to see coffee and dining offers pop up in
                                                                                                                                 stores around the country.
                                                                                                                                                                                      data has value. More and more retailers
                                                                                                                                                                                      are interrogating their data and, using this
    and retailers facing into a new year                                                                                                                                              new found business intelligence, are
                                                                                                                                                                                      making decisions relating to open to buy
        with fresh targets to achieve,                                                                                           THREE TIER                                           budgets, category performance, net
                                                                                                                                                                                      margin analysis, store grading and such

    David Fitzsimons, Chief Executive,                                                                                           ECONOMY                                              like. In some cases the data is being
                                                                                                                                                                                      mined by a third party company and thus
                                                                                                                                                                                      the retailer is also presented with data
          Retail Excellence Ireland                                                                                              It was concerning to hear Minister Michael           pertaining to their sector as well as their
                                                                                                                                                                                      business. More and more retailers will
                                                                                                                                 Noonan recently comment on inflation in
takes a look at the major trends which might                                                                                     Dublin hotel bedroom prices. The Minister
                                                                                                                                 suggested that he would withdraw the 9%
                                                                                                                                                                                      invest time in the interrogation of their
                                                                                                                                                                                      data and as a result will make better and
dominate Irish retail over the next 12 months                                                                                    VAT rate if he felt that businesses were             more informed decisions.

                                                Q1 2015 | Retail times                                                                                                                                                         13
RETAIL FOR 2015 PREDICTIONS - Q1 2015
COMPANIES LIKE TIGER WILL GROW
                                                                  CUSTOMERS                                                                                                                                                                                                                                  SIGNIFICANTLY IN 2015 - THEY ARE

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                                                                                                                                                                             t
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                                                                                                                                              H2H
                                                               HUMAN TO HUMAN                                                          race

                                                                                                                                                                                                                                                                      015
                                                                                                                                    emb                                                                                                                               in 2
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                                                                                                                        Custom                                                                                                                           ifican
                                                                                                                                                                                                                                                     sign
                                                                                                                                                                                                                                                ow
                                                                 ENGAGEMENT.                                                                                                                                      Companies
                                                                                                                                                                                                                            like Ti
                                                                                                                                                                                                                                   ge r w ill gr

                                                                                                  generally is going mobile. 52% of
                                                                                                  Littlewoods online sales are now made on

CONSUMERS HAVE A                                                                                  mobile devices. The lesson here is that if
                                                                                                  you have a website, you build it for mobile
                                                                                                  first.
                                                                                                                                                                                                                                                                                                                                                   DON’T BE
GROWING HUNGER TO HEAR                                                                                                                                                                                                                                                                                                                             SURPRISED TO
THE PRODUCT STORY                                                                                 FAST FIFTY                                                                                                                                                                                                                                       WALK INTO A
                                                                                                  REI is often asked to comment on retail
                                                                                                  sales data and for many years we have
                                                                                                                                                                                                                                                                                                                                                   GARDEN
                                                                                                                                                                                                                                                                                                                                                   CENTRE

H2H
                                                 someone making the customer a cup of             used the standard jargon of annual like for
                                                 coffee or selling them a vacuum cleaner, the     likes etc. I personally think it is time to
                                                 customer wants a pleasant and informed
                                                 interaction. Technology will come and go but
                                                 H2H is here to stay.
                                                                                                  change how we express sales data. The
                                                                                                  reason is that whilst the economy might
                                                                                                  grow or indeed decline, there are a number                                     Anti-big provides smaller retailers with an opportunity to embrace local and tell their story – This Manhattan retailer is very clear about what they stand for
                                                                                                                                                                                                                                                                                                                                                   WHICH HAS
                                                                                                  of retailers who either way will foraged a
                                                                                                  future of growth. It is my belief that 2015 will
                                                                                                                                                                                 CONVENIENCE IS KING                                                                                PERSONALISATION                                                FOOD TRUCKS
 HUMAN TO HUMAN                                  CRAFT &                                          witness the accelerated growth of
                                                                                                  approximately fifty “on-trend” retail brands.
                                                                                                  Thus in many ways the sales story of these
                                                                                                                                                                                 As the economy continues to recover and we
                                                                                                                                                                                 all invest more time in our work due to scarce
                                                                                                                                                                                                                                                                                    More and more we are witnessing significant
                                                                                                                                                                                                                                                                                    levels of personalisation in the high street.
                                                                                                                                                                                                                                                                                                                                                   DOTTED
 ENGAGEMENT C U R A T I O N                                                                       on trend companies will be far different to
                                                                                                  the rest.
                                                                                                                                                                                 resources, we will continue to be time poor.
                                                                                                                                                                                 behaviourally we have also changed; to some
                                                                                                                                                                                                                                                                                    Whether that involves adding your
                                                                                                                                                                                                                                                                                    personalised monogram onto a handbag or a
                                                                                                                                                                                                                                                                                    piece of jewellery being designed just for you,
                                                                                                                                                                                                                                                                                                                                                   AROUND
At a recent retail technology conference in      Consumers are very eager to learn of the
                                                                                                                                                                                 degree we embrace what is easy and that
                                                                                                                                                                                 behaviour in turn then becomes habitual. The
                                                                                                                                                                                                                                                                                    personalisation will continue to grow. Walk
                                                                                                                                                                                                                                                                                    down any street and you will be offered the
                                                                                                                                                                                                                                                                                                                                                   THE EXTERIOR
                                                                                                  ANTI-BIG
                                                 provenience of many day to day purchases                                                                                        rise in online shopping and other facets such
France I was struck by the amount of
technology being developed for the retail
industry globally. some of it was
                                                 they make. A trend which is likely to grow in
                                                 2015 is for more and more retailers to
                                                                                                                                                                                 as click and collect underline the fact that if we
                                                                                                                                                                                 can make it easy for consumers they will
                                                                                                                                                                                                                                                                                    opportunity to build your own sandals, teddy
                                                                                                                                                                                                                                                                                    bear, mobile phone cover, handbag strap and
                                                                                                                                                                                                                                                                                    the list goes on. One of the fastest growing
                                                                                                                                                                                                                                                                                                                                                   SPACE
                                                 embrace this consumer demand by stocking                                                                                        respond. Whether that be text ordering a                                                           retailers in New York is 3x1 – a jeans retailer
sensational, but most of it served no real
                                                 and better curating crafted items which have                                                                                    sandwich or having an online purchase                                                              with a difference – you build your own pair of
purpose. What I learned was that just                                                             A trend we saw in London recently was a
                                                 a back story. The resurgence in the craft                                                                                       delivered within two hours, the fact is that                                                       jeans and pay at minimum $800 for the
because you can create a technology to do                                                         growing cohort of customers who have
something, does not necessarily mean that        beer market is one such example. Whether                                                                                        convenience is king and will remain so.                                                            pleasure. More and more we will notice                         Larger format stores will look to new innovative uses of space
                                                                                                  grown tired of the “big retail brands” and
it should be implemented. In many ways in        it be a burger, glassware, pottery, fragrance,   instead choose to shop with independent                                                                                                                                           customers asking for products their way.                       – don’t be surprised to walk into a garden centre which has
our rush to embrace online, tech and loyalty     cosmetics, shoes..... consumers have a           retailers whom they feel offer a more                                          SPACE PRODUCTIVITY                                                                                                                                                food trucks dotted around the exterior space
we have somewhere along the way                  growing hunger to hear the product story.        personal relationship. The anti-big trend has                                  Ireland is over retailed (as we all know) and
forgotten the basics of retail. I was asked at                                                    led retailers such as Tesco and starbucks to                                   many larger format stores have too much
the tech conference to outline what I                                                             endeavour to localise their stores through                                     space. In 2015 we will begin to see this matter
believed will be the next big technology in
retail. I told the assembled audience that       MOBILE SHOPPING                                  innovative and unique design, and the
                                                                                                  delivery of an offering that is more focused
                                                                                                                                                                                 being addressed through the introduction of
                                                                                                                                                                                 new categories and shop in shop concession
from my perspective the next big thing           You don’t need to be a genius to work out        on the needs of the local community they                                       formats. Garden centres are also critically
would be H2H – Human to Human                    that we all are wedded to our phones. More       serve. There is a real opportunity here for                                    assessing how they can do more with their
engagement. It is my belief that consumers       and more we live our lives through our           independent retailers to embrace this trend                                    space. be assured that by the end of 2015
desperately seek out an engaging person to       mobile devises. It is thus no great surprise     and actively communicate what their brand                                      many larger format stores will look a lot
person experience in store, whether that be      that online shopping and purchase research       stands for.                                                                    different to how they currently look.

14                                                                                                                           Q1 2015 | Retail times                              Q1 2015 | Retail times                                                                                                                                                                                                      15
RETAIL FOR 2015 PREDICTIONS - Q1 2015
According to the Department of Jobs,
                                                                                                                                           Enterprise and Innovation the average
                                                                                                                                           waiting time for permits is down 51% on

                               RETAIL – IT’S ALL ABOUT PEOPLE
                                 At Retail Excellence Ireland, we are 100% focussed on helping our members achieve excellence
                                                                                                                                           January 2013. As at september 2014, the
                                                                                                                                           average waiting time was 18 working days.

                                                                                                                                           PROTECTED DISCLOSURES
                                   in all aspects of their retail businesses. Good people management is one of the fundamentals            ACT 2014
                                                                                              required in achieving this standard.         This Act provides protection against
                                                                                                                                           penalisation for employees who report
                                                                                                                                           wrongdoing. While this legislation is aimed
                                                                                                                                           at protecting employees, proper disclosure
We have listened to our members’ needs                                                    impact on employees and to make policy           can also be of benefit to employers as it
and have introduced a range of measures                                                   recommendations to Government on foot            can assist in uncovering wrongdoing within
in 2014 to assist members with their HR                                                   of the study. A full update with advice has      an organisation which may help to prevent
responsibilities. This is only the starting                                               been emailed to REI members recently on          accidents, financial scandals, criminal
point. In 2015, we have a range of exciting                                               this issue.                                      offences and regulatory breaches.
interventions and learning events which
will equip our members with knowledge                                                     LOW PAY COMMISSION                               GOVERNMENT JOBS
and skills to enable them drive their                                                                                                                                                     REI HR Network meets Minister Nash, Department of Jobs, Enterprise and Innovation at the REI
                                                                                          A statutory Low Pay Commission is to be
business to the next level of excellence.
                                                                                          established in 2015. The Low Pay
                                                                                                                                           INCENTIVES SCHEMES –                           Leadership Symposium, September 2014.
In this edition of Retail Times, Clare                                                    Commission will be asked to make annual          PLANS FOR 2015                                                                                   4.   Use your probation period – Too
Dowling, Head of HR Advisory services at
REI explores how retailers can be the best
by forging a strong people culture in their
                                                                                          recommendations to Government on the
                                                                                          national minimum wage rate and related
                                                                                                                                           JoBsPlUs: There will be a doubling of
                                                                                                                                           JobsPlus places in 2015 from 3,000 to
                                                                                                                                                                                          EXCELLENCE IN PEOPLE                                   often underperforming employees are
                                                                                                                                                                                                                                                 not properly screened during the

                                                                                                                                                                                          MANAGEMENT
                                                                                          matters.                                         6,000 to incentivise employers to hire long-                                                          probation period. A probation period
organisations.
                                                                                                                                           term unemployed people from the Live                                                                  affords employers the opportunity to

HR REVIEW OF 2014                                                                         ACCRUAL OF ANNUAL LEAVE                          Register. Employers can receive up to                                                                 assess whether an employee is a
                                                                                                                                           €10,000 in monthly cash grants over 2                                                                 suitable match for the job. The
                                                                                          WHILE ON SICK LEAVE
AND LOOK AHEAD TO 2015
On the workplace legislation front, 2014
                                                                                          Existing legislation is to be amended to
                                                                                          allow workers on long term sick leave to
                                                                                                                                           years for each eligible employee.
                                                                                                                                           A new JobsPlus strand for young people
                                                                                                                                                                                          TOP TIPS FOR 2015                                      applicable probation period should be
                                                                                                                                                                                                                                                 set out in writing in the contract of
                                                                                                                                                                                                                                                 employment to avoid any dispute on
was a busy year which saw the                                                             accrue and retain annual leave for up to 15      will be launched in 2015 under the Youth       The starting point to ensure that people               this issue.
introduction of a number of pieces of                                                     months from the end of the year in which it      Guarantee.
                                                                                                                                                                                          are at the very centre of your business is
legislation affecting employment and also                                                 accrued.                                         JoBPath: €12 million will be provided for                                                        5.   Review your employment contract –
a number of announcements regarding                                                                                                                                                       to ensure you and your people managers                 Check you have fulfilled your legal
                                                                                                                                           the new employment activation
changes to the workplace in the future.                                                                                                    programme JobPath. It is expected that
                                                                                                                                                                                          embrace the following key points:                      obligation by providing all employees
Clare Dowling together with the new                                                       EQUIP OUR MEMBERS WITH                                                                                                                                 with a written statement containing
                                                                                                                                           JobPath will help about 115,000 long-term
Deputy CEO in REI, seán Murphy are                                                        KNOWLEDGE AND SKILLS TO                                                                         1.   Know the law – REI has produced a                 their terms and conditions of
                                                                                                                                           unemployed jobseekers return to work.
           working hard to ensure REI                                                                                                                                                          very handy wall chart which members               employment. Preferably this will take
                 members’ voices and
                                                                                          ENABLE THEM TO DRIVE THEIR                       Further information on the Government               may use to check the statutory                    the form of a comprehensive contract
                     concerns are being                                                   BUSINESS TO THE NEXT LEVEL                       labour activation schemes is available at           entitlements of employees. This will be           of employment containing many
                       heard on a range of                                                                                                 www.welfare.ie.                                     posted to members shortly. REI in                 clauses for the protection of the
                         representation
                                                                                          OF EXCELLENCE                                                                                        conjunction with Tommy smyth HR                   employer e.g. probation period, non-
                                                                                                                                           REI will keep members informed of all
                          issues including                                                                                                 relevant employment related news                    Consultants continues to offer                    competition clause, retirement age etc.
                           the following:.                                                NEW LEGISLATION:                                 throughout 2015.                                    complimentary telephone advice to
                                                                                                                                                                                               REI members on HR issues. HR is
                                                                                                                                                                                                                                                 If you are satisfied all employees have
                                                                                                                                                                                                                                                 already received contracts, review the
                                                                                          national Vetting Bureau (children and
                                                                                                                                                                                               also, of course, included as a key
                            JLCs                                                          Vulnerable Persons) act 2012                     REI HR NETWORK                                      learning strand at all main REI
                                                                                                                                                                                                                                                 content to ensure it is up-to-date and
                                                                                                                                                                                                                                                 meets the requirements of your
                              New legislation                                             This Act, which is expected to come into         2014 also saw the establishment of the              learning events.                                  business.
                              has been                                                    force shortly, puts in place a mandatory         REI HR Network which is made up of HR
                             introduced                                                   national vetting process for persons who                                                        2.   start on the right note: training and        6.   Review your workplace polices –
                                                                                                                                           Managers and Directors of member
                            purportedly                                                   seek employment in certain limited                                                                   induction – Ensure employees                      Check you have the appropriate
                                                                                                                                           companies. The Network will meet on
                          remedying any                                                   protected areas. The type of worker that                                                             receive the training they need to allow           workplace polices in place i.e.
                                                                                                                                           various dates throughout 2015 including at
                        constitutional or                                                 requires vetting is listed in the Act but                                                            them properly carry out their job                 disciplinary, grievance, security, use of
                                                                                                                                           the annual REI Retail Retreat on Tuesday
                      legal difficulties with                                             primarily includes those persons working                                                             responsibilities. Every new employee              CCTV, cash handling procedures,
                                                                                                                                           12th May 2015 at Carton House,
                  the Joint Labour                                                        with vulnerable adults and children and                                                              should undergo a comprehensive                    alcohol and drugs etc. It is important
                                                                                                                                           Maynooth, Co. Kildare. Details of all HR
             Committee (JLC) system. It                                                   employees covered under the Private                                                                  induction detailing the standards                 that clear rules are set out in advance,
                                                                                                                                           Network meetings in 2015 will be
remains possible however that the system                                                  security services Act 2004.                                                                          required in the business. This assists            otherwise it can be very difficult to
                                                                                                                                           circulated to members of the Network in
will be subject to further legal scrutiny. The                                                                                                                                                 in creating the culture you want in your          tackle a problem at a later stage.
                                                                                                                                           due course.
JLCs for the Retail Grocery and Catering                                                  EMPLOYMENT PERMITS                                                                                   business by ensuring your standards
                                                                                                                                                                                                                                            7.   set out the applicable retirement
sectors have yet however to be                                                                                                                                                                 are met from the get-go.
reconstituted.
                                                                                          (AMENDMENT) ACT 2014                                                                                                                                   age in your business – There is no
                                                                                          This Act aimed to improve the application                                                       3.   set your boundaries early on –                    single retirement age in Ireland,
                                                                                          process and introduced new classes of
                                                                                                                                           GOOD PEOPLE MANAGEMENT                              Clear, objective standards of                     although 65 is generally regarded as
REVIEW OF ZERO AND                                                                        employment permits, the aim of which is to       IS ONE OF THE FUNDAMENTALS                          acceptable behaviour and conduct                  the age most people retire at. The age
                                                                                          attract highly qualified and specialised                                                             should be set out early on to ensure              at which the state Pension is payable
LOW HOUR CONTRACTS                                                                        individuals to the state to boost the
                                                                                                                                           REQUIRED IN ACHIEVING                               bad habits are not formed. This can be            is increasing. This may result in
A study is to commence in early 2015 on                                                                                                                                                        achieved by way of a well drafted staff           disputes if a retirement age is not
the prevalence of zero and low hour
                                                                                          economy and to encourage further                 THIS STANDARD.                                      handbook, structured team meetings
                                                                                          development in the ICT sector.                                                                                                                         defined and the employee may not be
contracts among Irish employers, their                                                                                                                                                         and performance appraisals.                       in a position to afford to retire.

16                                                                                                                Q1 2015 | Retail times   Q1 2015 | Retail times                                                                                                                        17
RETAIL FOR 2015 PREDICTIONS - Q1 2015
Currently the state Pension is paid at            receive regular training to ensure they          critical task for any retailer. REI can
     66 years however the qualifying age               have the skills and knowledge                    assist members in a variety of ways in
     will rise to 67 in 2021 and 68 in 2028.           required to successfully carry out their         achieving that level of excellence.
     Employers should ensure the                       job functions. Frontline retail
     applicable retirement age is confirmed            employees should receive ongoing             if you require any assistance with hR in
     in the contract of employment thus                training on customer service, cash           your business, Rei offers members a
     avoiding any ambiguity on the matter.             handling and security procedures.            range of services at reasonable rates.
                                                       Managers should receive training on          here are some examples of the services
8.   communicate clearly – Often                                                                    provided:
     problems arise solely due to poor or              how to effectively manage and lead
     little communication in the workplace.            their team and how to drive business         •   Review of contracts of employment,
     Keep your employees involved in the               strategy. Proper training will also assist       workplace policies and staff
     bigger picture. Let them know what is             with maintaining motivation and                  handbooks to ensure best practice
     going on overall in the business, even            morale amongst employees.                        and business requirements are met;
     if it does not directly affect their role.        Remember REI offers relevant training
                                                                                                    •   Review of HR administration to ensure
     Good communication keeps                          to members throughout the year.
                                                                                                        legal compliance;
     employees motivated and aligns their         10. Remember happy employees make                 •   Advice on handling a formal
     goals with the objectives of the                 happy customers… - Employees                      disciplinary process;
     business. set out all rules, standards           represent a company and its brand.
     and procedures in writing to avoid any                                                         •   Advice on dealing with grievance and /
                                                      Their interactions with shop-goers
     uncertainty.                                                                                       or bullying and harassment
                                                      have long been considered the
                                                                                                        complaints;
9.   Recognise training as an ongoing                 ‘moment of truth’ for customers.
                                                      Ensuring your employees are happy             •   Advice on change management such
     need in the business – Employees at
                                                      and engaged in the workplace is a                 as restructuring, redundancy etc.
     all levels in a retail business should

LAUNCH OF PEOPLE MANAGEMENT TRAINING FOR RETAIL MANAGERS
                                                                                                         GET YOUR TEAM BEHIND YOU
                             “In REI we often     course which gives your store managers            •   Performance management: Getting
                               deal with          the knowledge and skills they need in                 the most out of your employees
                                 queries from     order to effectively manage their retail          •   managing absenteeism: Dealing with
                                  retail          staff. Every business has its own                     absence and creating an attendance
                                   managers       structures and challenges so the training is          culture
                                   who do not     entirely tailored to your individual business     •   managing change: Approaching
                                   know how       requirements and based on the particular              redundancies, restructuring and
                                   to approach    responsibilities of your managers.                    reviewing terms and conditions of
                                   a situation    A sample of the modules involved in the               employment
                                 which often      training is detailed below, however please        The one day training course is delivered
                                means it has      note the content is completely                    in-house in your own business. Places on
                               escalated into     customisable, depending on your own               the course are limited so as to ensure a
                            a full-blown          requirements:                                     high level of interaction and to ensure all
                         dispute with all                                                           participants’ queries are fully answered.
                     parties fully entrenched     •    conflict management: Drugs and
                                                       alcohol, staff surveillance, theft and       The cost of the course is €1,950 plus Vat
             in their positons. These                                                               at 23%.
interruptions to your business are costly,             shrinkage, interpersonal disputes
time consuming, distressing and without           •    handling difficult conversations
                                                                                                    The benefits good people management
doubt negatively affect your customers’                with your employees: How to
                                                                                                    practices bring to your business include:
experience of your store. With the right               approach them and what can you say
help and early intervention these situations      •    dealing with discipline: Conducting          •   Less conflict in the workplace
are altogether avoidable.” says Clare                  formal investigations and disciplinary       •   Reduced risk of claims and litigation
Dowling, Head of HR Advisory services in               hearings                                     •   Increased levels of productivity,
REI.                                              •    managing grievances / bullying and               motivation and morale
                                                       harassment complaints: How to                •   All of which results in a better
HR is an integral part of every retail
                                                       manage formal complaints properly                experience for your customers thus
business regardless of size. Lack of
                                                       and effectively                                  increasing the bottom line
investment in HR often results in financial
expenditure and time lost elsewhere in
terms of disputes, theft and shrinkage,
reduced productivity, high staff turnover
rates, low morale etc.
                                                      TESTIMONIAL
                                                      “This training has had a significant impact on our managers, both in terms
To assist members in achieving both legal             of their skill levels and how we work together as a team. The content was
compliance and best standards in HR, REI
is delighted to announce the launch of a              practical and focused on developing the skills and also the confidence of
training programme specifically designed              our mangers in their day-to-day people management.” Orla briggs, HR
for store managers in the retail industry.            Manager, Carroll’s Irish Gifts.
We have successfully delivered this
programme to a number of members in               FoR BooKinGs and enQUiRies: please contact Clare Dowling, Head of HR Advisory
2014. It is a practical one day training          services in Retail Excellence Ireland. Tel: 065 684 6927 Email: clare@retailexcellence.ie.

18                                                                                                                          Q1 2015 | Retail times
7 GOOD REASONS TO LEAVE YOUR
    PAYROLL TO THE PROFESSIONALS
                                                      Payroll is a complicated, mandatory business function
                                                      for any business. For retailers, it is even more complex.
                                                      You have employees on salary and you have employees on
                                                      hourly rates, scaled and overtime rates, not to mention shift
                                                      changes or no-shows.
                                                      All this complexity adds to the time it takes to do payroll. Add to that the
                                                      continuous changes to tax credits, allowances, benefits, emergency tax bands and cut-offs, it
                                                      is a job in itself trying to keep up.
                                                      With a new year dawning and new goals being set, now is a good time to re-examine your
                                                      payroll requirements. Payroll is an overhead but it doesn't have to be an expensive one.
                                                      Here are seven areas to consider when making an informed decision about whether to continue
                                                      with your in-house payroll or outsource it to an accountant who specialises in retail payroll.

 Angela Garvey is an accountant that specialises in      trouble with Revenue. The last thing you       6. continUal tRaininG
 retail accounting and affordable payroll solutions      need in 2015 is being liable to pay Revenue       and Best PRactice
 for the SME Retailer. A Preferred Supplier with         penalties and back pay for making a payroll      Anyone who processes your payroll must be
 Retail Excellence, Angela runs AG Associates            mistake, not matter how small.                   continually trained in payroll. Every year,
 Accountants and works with some of the leading          There are so many dates and returns to be        there are new changes introduced in the
 retailers in the country. For further information       aware of. Tax credits and P2Cs which the         budget which affects payroll. Take for
 please contact Angela at angela@agassociates.ie         Revenue sends electronically through-out         example the property tax. That's now going
 or 021 4824723 website: www.agassociates.ie.            the year must be imported into your payroll      through payroll which is another deduction
                                                         system. It's imperative that all staff are       to work through. so your staff needs to be
                                                         paying the correct amount of relevant taxes.
1. cost oF PayRoll                                       Keeping track of important dates such as
                                                                                                          up-to-date with the obvious (and not so
   Payroll can be costly to your retail business                                                          obvious) annual budget changes which
                                                         P35 returns (February 15th) is incredibly        affects payroll.
   from a time perspective. Gathering                    important, as is ensuring that your P60s are
   information about employee’s hours, shifts,                                                            And it's not just budgetary changes that you
                                                         generated and distributed to staff at the        ought to be aware of, there are also
   shift changes, holidays, overtime and                 beginning of the year.
   individual benefits takes time.                                                                                 employment rights and NERA
   Analyse how many hours are spent                   4. sicK    Pay    and                                             compliance to consider as well.
   gathering information for payroll, preparing          disaBility Pay                                                     The second last thing you
   the payroll and running the payroll. Include          sick & disability pay is                                             don't want in 2015 (after
   the admin hours of filing tax returns,                one of the most                                                        a Revenue penalty
   distributing wage-slips and answering                 complex         areas                                                   pay-out) is a NERA
   queries from employees.                               when processing                                                          visit. Payroll can
   You might be amazed at the hours that are             payroll. In the                                                           assist you with your
   clocked up especially if you run payroll on a                                                                                    compliance.
                                                         retail sector, due
   weekly basis.                                         to the nature of
                                                                                                                                   Confidentiality is of
                                                         employment, you
2 eFFiciency oF Finance staFF                            do face more
                                                                                                                                   key concern when
   If you do the exercise as outlined in step no.                                                                                  processing payroll.
                                                         incidences        of
   1, you will find that payroll is a time-                                                                                       You must have
                                                         these types of pay.
   consuming exercise. Removing payroll will                                                                                     100% peace of mind
                                                         It's important to get
   in turn free up your employee’s time, for                                                                                    that best practices are
                                                         it right. For example,
   other work better spent in your business.                                                                                  in place. When you
                                                         where an employee is
   If you have an in-house accountant or                                                                                   outsource,               that
                                                         entitled to sick pay or 'job
   accounts clerk doing your payroll, imagine                                                                            confidentiality is guaranteed.
                                                         illness      benefit'      from
   taking away those hours of doing the payroll          Department of social Protection,
   and spending it more productively on                                                                       7. continGency
                                                         that amount is now taxable and must be
   preparing and analysing your day to day               entered in the payroll system. The onus is
                                                                                                          PlanninG
   and monthly accounts. Keeping up to date              on you to ensure all payroll deductions are      As a business owner, you hope that all your
   with your financials will help identify monthly       correctly applied.                               staff are in full attendance for work as usual.
   gross margins and allow you to produce                                                                 but payroll is a function that needs to be
   current reports on liquidity ratios, cash-flow     5. holiday Pay entitlements                         done on a weekly, bi-weekly or monthly
   statement and KPI’s to name a few.                    similarly, not all holiday pay is created        basis. There is no exception. Your
                                                         equal. Everyone is entitled to holiday pay       employees need to get paid. If your
3. accURacy oF PayRoll                                   and days off, it just depends on how much        employee who processes payroll is out sick
   If you are not doing payroll day in day out,          work is done in the leave year and how it is     for a few days, then your payroll and your
   then there is a high chance that you could            calculated. It could be 8% of hours worked       employees will be affected.
   get it wrong. The onus is on you as the               or 4 weeks off or one third of a working         To conclude, it's really your decision to
   employer to ensure the correct amount of              week. And you need to know what days are         continue with payroll in-house but make
   taxes are deducted, in terms of PAYE, PRsI,           considered 'working hours'. For example,         sure it's an informed one. For most
   UsC, LPT etc and returned to the Revenue              sick hours are not included but maternity        businesses, your wage bill is your biggest
   on time. Getting it wrong opens you up to             leave and parental days are.                     bill, so it's important to get it right.

Q1 2015 | Retail times                                                                                                                               21
SMOOTHING THE CUSTOMER
     JOURNEY
Now that the Christmas shopping                                                                                                                        t h e i r
frenzy and post festive season                                                                                                                         home,
sales rush is behind us, it’s                                                                                                   there was a
time to sit back and start                                                                                                        growing trend for alternative
implementing             our                                                                                                       delivery locations including
resolutions for the year                                                                                                            workplace,       family    or
ahead. Getting more                                                                                                                  friend’s address, store
organised generally falls                                                                                                             collection, parcel shop
into everyone’s top three                                                                                                             and locker box. The key
things to improve upon.                                                                                                               to      satisfying      the
For many of us, we just                                                                                                              consumer requirement is
want to win back some of                                                                                                            to offer a variety of options
the time that we waste                                                                                                             which the consumer can
waiting for things to happen                                                                                                      choose from depending on
and become more focused on                                                                                                      their preferences at a
getting the job done.                                                                                                         particular time. Up to date
                                                                                                                           communications         during      the
Life is busy and time is a precious
                                                                                                                          ordering and shipping processes
commodity. We live in a world
                                                                                                                          ensure that the consumer is always
where we want things quickly;                                                                                  Delivery
                                         generated                                                                        aware of the status of their order. In
waiting isn’t something that’s                                                                        Date were the
                                         by “people like                                                                  flight options from the delivery
acceptable anymore. Yet the e-                                                            top three topics. There is
                                         ourselves”.                                                                      partner is an added bonus. If these
consumer’s journey from pre-                                                    no single solution that suits all         options are provided, once the
decision to purchase to receipt of       Delivery continues to be a key focal   consumers       but     offering      a   parcel has arrived with the carrier,
their order can be a long and            point for the e-consumer and is an     reasonable level of flexibility around    the consumer can still opt to change
arduous one.                             area that regularly generates strong   delivery allows the consumer an           delivery date or location. Life
Awareness, familiarity, consideration,   opinions. When ask what the most       element of control.                       doesn’t go according to plan
intent and decision, we know these       important options to have at the on-                                             sometimes,        and      consumers
are the steps that happen prior to       line checkout, respondents to a        The same survey maintained that           appreciate having the flexibility to
the purchase even being made. For        2014 UPs survey cited that details     consumer delivery preferences             make last minute changes.
many years, that’s where the             on Free shipping, Information on       were evolving and that while most
engagement process stopped. With         the Cost of shipping and Estimated     e-shoppers still preferred delivery to    In autumn 2014, DPD Ireland
on line shopping and omni-channel                                                                                         launched DPD Parcel Wizard ™, a
retailing    now        the     more                                                                                      free service dedicated to the on-line
                                                                                                                          consumer who receives their
commonplace,          post-purchase
experience, including delivery, has             LIFE IS BUSY AND TIME IS A                                                deliveries via DPD’s network of 38
                                                                                                                          depots       throughout      Ireland.
become a really strong factor in
driving customer loyalty. These
elements of the customer journey
                                                  PRECIOUS COMMODITY                                                      www.DPDParcelWizard.ie lets the
                                                                                                                          consumer set up delivery schedules
require as much focus as any of the                                                                                       through the Parcel Wizard™
steps up to the point of purchase.                                                                                        calendar. The consumer also
                                                                                                                          receives a suite of messaging pre-
We’re living in the era of the digital
native which leads to more                                                                                                delivery including their Predict™
empowered consumers. Choice is                                                                                            one hour delivery window via sMs
available to us at the click of a                                                                                         and email. The Parcel Wizard
mouse or the flick of a finger across                                                                                     member engages with DPD directly
a tablet screen and the information                                                                                       with regard to their delivery
is there 24/7/365. As consumers,                                                                                          preferences reducing customer
rather than look to manufacturers or                                                                                      service overheads for the shipper;
retailers for overviews of the                                                                                            all the while DPD also keeps the
products we’re interested in                                                                                              shipper updated with any changes
purchasing, we seek personal                                                                                              relating to the delivery. DPD Parcel
feedback from our friends and                                                                                             Wizard™ was awarded a Geopost
family via social media. The social                                                                                       Quality and Management Award for
media “friend” net spreads far wider                                                                                      sales and Customer Experience
than the friends we meet face to                                                                                          Enhancement. The DPD Parcel
face every day so access to opinion                                                                                       Wizard initiative was developed
is far reaching. Ratings and reviews                                                                                      wholly with the e-shopper in mind,
posted by consumers are seen to                                                                                           to smooth the customer journey
be more credible as they are being                                                                                        from checkout to doorstep.

22                                                                                                                                       Q1 2015 | Retail times
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