Retailing in Ireland
Euromonitor International's Retailing in Ireland report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
Buy online to access strategic market analysis and an interactive statistical database of retail value sales, number of sites/outlets, retail surface area and employment in retailing.
Chapters: 12 | Tables: 85 | Publication date: Sep 2006
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Executive summary
Up, up and away
The Irish retail market continues to go from strength-to-strength, riding on the back of an unprecedented economic boom which has seen the once decrepit Irish economy now dubbed the ‘Celtic Tiger’. With government statistics revealing average incomes are rapidly rising with larger amounts of disposable income released across the economy year on year, a trend that particularly benefited household and leisure expenditure levels. A further trend underpinning growth was the modernisation of the retail sector with strong expansions in consumer spending supported by high floor space release, employment growth and increases in the number of outlets. Importantly and in contrast to general perceptions, prices are not rising as quickly across the retail economy and value growth in many categories was instead driven by significant volume increases encouraged by this overall feeling of economic wellbeing.
New developments underpin growth
Ireland is adding greatly each year to its housing stock giving rise to concerns over possible over-valuations especially in urban centres such as Dublin and Cork. That aside urban spread and new living patterns led to a significant addition to the retail floor space provision with a number of shopping centre and retail parks coming on-stream towards the end of the review period to meet these changing patterns of demand. These more recent developments are predicted to address the considerable bottleneck issues that arose as the retail industry largely lagged behind other areas of the economy in terms of pace of development. In 2005 in part due to this period of accelerated development, retailing is considered to be well on the road to maturity with competition and customer loyalty likely to become bigger issues than investment and crude expansion were over the review period.
Regulations to loosen
The regulatory environment both tightened and eased over the tail end of the review period notably between 2004 and 2006. There were relaxations to Ireland’s strict planning environment with relaxation of the planning guidelines and maximum store size limitations to allow Ikea to apply for planning permission to enter Ireland with a superstore project on the outskirts of Dublin. Significantly, the Groceries Order Bill (1987) was repealed in 2006 and now allows for larger multiples to lower prices on a range of product categories and for more below-the-line promotions the likes of which typify the UK approach to supermarket retailing of late. New Consumer Protection & Pharmacy Bills are also to come before the Dail (Parliament) in 2006 and there will be further emphasis on government attempts to challenge the high cost of living in the country though the introduction of fairer pricing and greater competition within this sector which is growing in importance as consumers are pushed towards OTC medicine rather than the state health system for common illnesses.
Windfall set to boost sales
The expected injections of government savings or SSIA money into the retail sector in 2006-2007 is predicted to further support the existing high consumer demand in the national economy as a whole. There are however concerns heading into 2008 as the SSIA monies are spent, as increased interest rates take hold, and significant cost of living increases eventually combine to dampen consumer sentiment. With the original SSIA scheme established to help prevent over heating in the Irish economy it would seem inevitable that a sudden burst of cash going into the retail sector there may well eventually be a hangover hastened if the Irish government is unable to bring the cost of living and in particular housing costs under control over the medium term forecast period.
Tesco
Tesco continues to increase its influence in the Irish market and used its experience in expanding to dominate the UK retail market to good effect in Ireland at a time when retail laws were being relaxed in favour of greater modernisation. The momentum of the German discounters, Aldi and Lidl, which were once vaunted as being a major obstacle to the development of the supermarket segment, appears to have stalled in 2005-2006 with sales plateauing in the face of competition for retail sites. The Irish market remains fragmented although consolidation is taking place in some sectors such as electrical appliances and DIY with some suggestion that the lucrative convenience sector will also follow in time.
Table of contents
1. EXECUTIVE SUMMARY
Up, up and away
New developments underpin growth
Regulations to loosen
Windfall set to boost sales
Tesco
2. OPERATING ENVIRONMENT
2.1 GOVERNMENT POLICIES
Introduction
Repeal of the Groceries Order (1987)
Changing Consumer Policy
Consumer Policy, Government Policy & State Agencies
Voluntary Organisations
2.2 LEGISLATION
Planning Process
National Spatial Strategy 2002 & Regional Planning Guidelines
Objectives of Retail Planning Guidelines
Sequential Planning
Maximum Size Legislation
Other Legislative & Regulatory
Competition Acts
Public Health (tobacco) Act 2004 (amendment)
WEEE Directive
Hazard Analysis Critical Control Point (HACCP)
Consumer Protection Bill 2006
2.3 OPENING HOURS
2.4 RETAILING LANDSCAPE
Main street versus out of town
Shopping centres and malls
2.5 EMPLOYMENT IN RETAILING
Minimum wage
Table 1 Employment in Retailing: 2000-2005
2.6 CASH AND CARRY/WAREHOUSE CLUBS
3. RETAILING: RETAIL SALES
3.1 MARKET PERFORMANCE
Special Savings Investment Accounts
High exposure to an over-valued property market?
Retail inflation: how quickly are irish retailers increasing their prices?
Value versus volume comparison of retail sales composition
Strong increase in retail spend
Destination of spend: grocery versus non-grocery & consumer expenditure
Food value versus volume
Non-grocery & consumer expenditure record strong increase
Retailers property portfolios
New destinations for consumer spend
Exposure of certain consumer profiles to interest rate rises
Non-retail store spend increases strongly
Table 2 Sales in Retailing by Sector: Value 2000-2005
Table 3 Sales in Retailing by Sector: % Value Growth 2000-2005
Table 4 Sales of Grocery vs Non-Grocery Sales in Retailing 2000-2005
4. RETAILING: COMPETITIVE ENVIRONMENT
4.1 LEADING RETAILERS
Market concentration
Retailers in Ireland in expansionist mindset
Retail floor space: oversupply concerns?
Table 5 Retailing Company Shares: %Value 2004-2005
4.2 RECENT MERGERS AND ACQUISITIONS
4.3 CONCESSIONS
Concessions
5. PRIVATE LABEL
5.1 RETAILERS AND THEIR STRATEGIES
Private label and the Irish shopper
Examination of selected private label performances by category
6. RETAILING: FORECAST MARKET PERFORMANCE
Issues to undermine growth in the retail economy
Table 6 Forecast Sales in Retailing by Sector: Value 2005-2010
Table 7 Forecast Sales in Retailing by Sector: % Value Growth 2005-2010
7. MARKET PERFORMANCE: GROCERY RETAILERS
7.1 OVERVIEW
Increasing prices in fresh food
Increasing health and time discriminating consumers
Grocery forecast
Table 8 Grocery Retailers by Sector: Value 2000-2005
Table 9 Grocery Retailers by Sector: Units 2000-2005
Table 10 Grocery Retailers by Sector: Selling Space 2000-2005
Table 11 Grocery Retailers by Sector: % Value Growth 2000-2005
Table 12 Grocery Retailers by Sector: % Unit Growth 2000-2005
Table 13 Grocery Retailers by Sector: % Selling space growth 2000-2005
Table 14 Grocery Retailers Company Shares: % Value 2004-2005
Table 15 Grocery Retailers Brand Shares:% Value 2004-2005
Table 16 Grocery Retailers Forecasts by Sector: Value 2005-2010
Table 17 Grocery Retailers Forecasts by Sector: Units 2005-2010
Table 18 Grocery Retailers Forecasts by Sector: Selling Space 2005-2010
Table 19 Grocery Retailers Forecasts by Sector: % Value Growth 2005-2010
Table 20 Grocery Retailers Forecasts by Sector: % Unit Growth 2005-2010
Table 21 Grocery Retailers Forecasts by Sector: % Selling space growth 2005-2010
7.2 FOCUS SECTOR: DISCOUNTERS
Low loyalty to discounters
Discounters forecast
Table 22 Discounters: Value Sales, Outlets and Selling Space 2000-2005
Table 23 Discounters: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 24 Discounters Company Shares by Value 2004-2005
Table 25 Discounters Brand Shares by Value 2004-2005
Table 26 Discounters Company Shares by Outlets 2004-2005
Table 27 Discounters Brand Shares by Outlets 2004-2005
Table 28 Discounters Company Shares by Selling Space 2004-2005
Table 29 Discounters Brand Shares by Selling Space 2004-2005
Table 30 Discounters Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 31 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
7.3 FOCUS SECTOR: CONVENIENCE STORES
Interpreting convenience
Forecast for convenience stores
Table 32 Convenience Stores: Value Sales, Outlets and Selling Space 2000-2005
Table 33 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 34 Convenience Stores Company Shares by Value 2004-2005
Table 35 Convenience Stores Brand Shares by Value 2004-2005
Table 36 Convenience Stores Company Shares by Outlets 2004-2005
Table 37 Convenience Stores Brand Shares by Outlets 2004-2005
Table 38 Convenience Stores Company Shares by Selling Space 2004-2005
Table 39 Convenience Stores Brand Shares by Selling Space 2004-2005
Table 40 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 41 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8. MARKET PERFORMANCE: NON-GROCERY RETAILERS
8.1 OVERVIEW
Driving growth
Leisure and personal goods
Durable goods retail
Home furniture and household goods retail
Clothing and footwear retail
Discount market
Positive starts by new entrants to Ireland
Increased floorspace and refurbishments increase quantity & quality of retail stock
Forecast
Increasing consolidation
Table 42 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 43 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 44 Non-Grocery Retailers Company Shares by Value 2004-2005
Table 45 Non-Grocery Retailers Brand Shares by Value 2004-2005
Table 46 Non-Grocery Retailers Company Shares by Outlets 2004-2005
Table 47 Non-Grocery Retailers Brand Shares by Outlets 2004-2005
Table 48 Non-Grocery Retailers Company Shares by Selling Space 2004-2005
Table 49 Non-Grocery Retailers Brand Shares by Selling Space 2004-2005
Table 50 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 51 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8.2 FOCUS SECTOR: HEALTH AND BEAUTY RETAILERS
Prescriptions market
Restricted entry
Online prescriptions sales
Sales by format type
Dispensed and over-the-counter
Leading retailers
Chemists/pharmacies response to increasing health & lifestyle market
Forecasts
Table 52 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 53 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 54 Health and Beauty Retailers Company Shares by Value 2004-2005
Table 55 Health and Beauty Retailers Brand Shares by Value 2004-2005
Table 56 Health and Beauty Retailers Company Shares by Outlets 2004-2005
Table 57 Health and Beauty Retailers Brand Shares by Outlets 2004-2005
Table 58 Health and Beauty Retailers Company Shares by Selling Space 2004-2005
Table 59 Health and Beauty Retailers Brand Shares by Selling Space 2004-2005
Table 60 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 61 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
9. NON-STORE RETAILING: VENDING
Leading operators
Forecast sales
Table 62 Vending: Value 2000-2005
Table 63 Vending: % Value Growth 2000-2005
Table 64 Vending Company Shares by Value 2004-2005
Table 65 Vending Brand Shares by Value 2004-2005
Table 66 Vending Forecasts: Value 2005-2010
Table 67 Vending Forecasts: % Value Growth 2005-2010
10. NON-STORE RETAILING: HOMESHOPPING
Leading operators
Forecast sales
Table 68 Homeshopping: Value 2000-2005
Table 69 Homeshopping: % Value Growth 2000-2005
Table 70 Homeshopping Company Shares by Value 2004-2005
Table 71 Homeshopping Brand Shares by Value 2004-2005
Table 72 Homeshopping Forecasts: Value 2005-2010
Table 73 Homeshopping Forecasts: % Value Growth 2005-2010
11. NON-STORE RETAILING: INTERNET RETAILING
Low broadband take-up
Online purchases
Leading operators
Online grocery shopping
Pharmacy
eBay
Music
Forecast sales
Table 74 Internet Retailing: Value 2000-2005
Table 75 Internet Retailing: % Value Growth 2000-2005
Table 76 Internet Retailing Company Shares by Value 2004-2005
Table 77 Internet Retailing Brand Shares by Value 2004-2005
Table 78 Internet Retailing Forecasts: Value 2005-2010
Table 79 Internet Retailing Forecasts: % Value Growth 2005-2010
12. NON-STORE RETAILING: DIRECT SELLING
Leading operators
Forecast sales
Table 80 Direct Selling: Value 2000-2005
Table 81 Direct Selling: % Value Growth 2000-2005
Table 82 Direct Selling Company Shares by Value 2004-2005
Table 83 Direct Selling Brand Shares by Value 2004-2005
Table 84 Direct Selling Forecasts: Value 2005-2010
Table 85 Direct Selling Forecasts: % Value Growth 2005-2010