21 minute read
Bord Bia predicts foodservice decline of up to 60
by Retail News
personal care. “In terms of the baking category, sales of flour alone have risen 200% and we have also seen a rise in demand for related products such as toppings, mini marshmallows and core baking ingredients like raising agents, flavourings and food colourings. Similarly in terms of personal care, we have seen soap sales soar by 400% and over the course of the past number of months, our stores have sold enough toilet paper to go around the world eight times.” Tesco also recorded formidable sales growth this month. Its typically larger stores allowed it to capitalise on the increase in trolley shops and the grocer grew by 23.7% to hold 21.8% of the market. Dunnes also gained from shoppers spending more in-store, spending an extra €10.39 per trip compared with last year, and it recorded healthy growth of 18%. This was slightly behind the market, linked partly to Dunnes not having a direct online grocery offer. Lidl benefited from its Dublin stronghold to boost sales by 30.5% and held its market share at 12%, while Aldi performed strongest in the south of the country, growing overall sales by 20.8% to hold an 11.7% share. Lockdown has continued to drive up online grocery shopping, with sales through digital platforms increasing by 76% year on year. “Demand for online groceries has soared over the past few months and 15% of Irish households received at least one online delivery over the latest 12 weeks, a significant increase from 9% last year,” revealed Emer Healy. “This sudden surge in demand meant that the retailers had to act quickly to increase their online capacity, and have been rightly praised for extending their services to those who need them most. That includes reaching groups who are more vulnerable in the current crisis, with an additional 26,000 retired households ordering an online delivery over the 12 weeks to May 17 and over-65s spending an extra €8.9m online.” Martin Kelleher also referred to the “spike” in online shopping, resulting in the group scaling up its service by hiring more drivers and in-store colleagues to meet demand. “The growth we have seen in home deliveries is the equivalent to opening 12 new SuperValu stores,” revealed the SuperValu Managing Director. Shoppers aren’t limiting themselves to food and drink essentials and it seems that some are preparing to look their best as lockdown eases. Emer Healy continues: “With hair salons closed, shoppers took matters into their own hands and sales of haircare products and hair colourants were up 25% and 73% as they prepared to see friends and family in phase two of the lockdown following the loosening of restrictions on May 18.” Despite the circumstances, people have sought to buoy spirits and enjoy themselves in the sunny spring weather. “Friday May 1, the day before the early May bank holiday weekend, was worth €52.8m, as consumers prepared for a weekend of sunshine. The holiday, coupled with a month of warm temperatures, meant that alcohol sales grew by a staggering 93% over the latest four weeks. It seems many of us enjoyed the barbecue weather as shoppers spent an additional €3.8m on sausages and burgers. Ice cream sales were worth an extra €5.9m.” Grocery market inflation stands at 2.3% for the 12-week period ending May 17, 2020.
BORD Bia has published a White Paper charting three possible scenarios for the Irish foodservice industry for the rest of 2020, as the industry moves to a phased reopening in a transformed operating environment following the huge impact of Covid-19. Based on a ‘best case scenario’ and taking into account the impact of falling tourism figures, the out-of-home market in Ireland is predicted to fall in value from €8.5 billion at the beginning of 2020 to €4.7 billion by the end of this year, while their ‘worst case scenario’ would see the market decline by almost 60% to €3.7 billion. Taking market values as published by Bord Bia to the end of 2019, the White Paper, co-authored by global foodservice research specialists Technomic, outlines recommendations and supports available to business as they forward plan and adapt their positioning, products and services. “While acknowledging the clear and ongoing damage to the Irish foodservice market, it is also important to begin thinking about how the industry re-starts and what permanent changes may ultimately “stick” into the future,” stressed Maureen Gahan, Foodservice Specialist, Bord Bia. “We understand from listening to food and drink suppliers servicing this market that access to timely data and insights is crucial for them as they look to revise their plans and activities for the second half of 2020. “The out-of-home channel was one of the most severely impacted by Covid-19, not just in Ireland, but world-wide, experiencing a near total collapse due to the temporary shutdown of the hospitality sector. However, we also know that it is a hugely resilient industry and we have already seen a number of outlets transitioning their businesses to take-away and home delivery. Similarly, we have seen examples from our food and beverage producers that are pivoting their businesses to meet the new needs of their foodservice customers.” White Paper Co-author, David Henkes, Technomic, said, “Foodservice will certainly see contractions in 2020, erasing years of growth and share gain from the retail sector. However, we remain bullish on the longer-term viability and resurgence of the industry, as the economy recovers and as consumers grow more confident living in the age of Covid-19.” The full report is available on bordbia.ie.
Retail Ireland welcomes move to accelerate reopening
Arnold Dillon, Director of Retail Ireland.
RETAIL Ireland has welcomed the Government’s accelerated reopening of all small and large retailers, along with shopping centres, after getting the green light from the National Public Health Emergency Team. “Retailers have clearly demonstrated their commitment to transforming how they operate to protect the health of customers and staff. The reopening of larger retailers earlier than planned is a welcome acknowledgement of this, along with the urgent need to protect the thousands of vulnerable retail businesses and jobs right across the country,” said Retail Ireland Director Arnold Dillon. When it comes to shopping centres, the Retail Ireland Director said the need for social distancing will result in a very different shopping experience, but customers have already adapted and are supportive of the new rules: “Many shopping centres remained open during the crisis to allow essential retail to trade, even if many of the shops were closed. They have put in place comprehensive plans to ensure the safety of staff and customers, including new queuing systems, tightly controlling the numbers entering the centres and additional hygiene measures. The reopening will be done in a way that safeguards public health, while also protecting jobs and businesses.” Independent Retailers (NFRN) has produced a new digital guide to remind members of the financial support available to them during the coronavirus crisis. The booklet, entitled Coronavirus and Support Available for Business in the RoI, explains the details behind the Temporary Covid-19 Wage Subsidy Scheme, Covid-19 Enhanced Illness Benefit, Credit Guarantee
Aldi unveils plans to open new Clonakilty store in 2022
ALDI has revealed plans to open a new store Clonakilty, West Cork, by the end of 2022. The new store will be located in Clonakilty’s town centre The Waterfront. Aldi received planning permission for a store in April 2017 and recently lodged an application to alter its roof specifications to match Aldi’s new standard store design. The 1,315 square metre store will be constructed in Aldi’s award-winning Project Fresh design and feature 109 car parking spaces. Powered by 100% green electricity, it will also include two free-to-use electric vehicle charging points outside the store. “We are very excited to be coming to Clonakilty. This is fantastic news for shoppers and employment in the town. Every new Aldi store that opens brings greater choice, quality and value to shoppers,” noted Adam Ward, Managing strong commitment to Cork, with our first store opening in Ballincollig over 20 years ago. We now operate 23 stores in the county, along with our Regional Distribution Centre in Mitchelstown. Our new Clonakilty store will bring great value to the doorsteps of locals who previously had to travel to shop at Aldi.”
NFRN launches Covid-19 booklet
THE National Federation of Director, Aldi Mitchelstown Region. “Aldi has a
Scheme for Covid-19 and the Covid-19 Pandemic Unemployment Payment. It also contains advice on applying for these support schemes and links to useful websites. Commenting on the guide, NFRN National President Stuart Reddish said: “Over recent months the NFRN has produced a series of tools to help retailers trade safely during the coronavirus pandemic. There is also a wealth of support available to businesses from the government and to help members access this we have produced a new digital guide which can be downloaded from the NFRN’s website, www.nfrnonline.com.”
PLMA president passes away
BRIAN Sharoff, President of the Private Label Manufacturers Association, one of the industry’s most successful trade organisations, passed away on Saturday, May 23, after a brief illness. President of PLMA since 1981, shortly after the association was founded, Sharoff was praised for his “tremendous focus and dedication”, which helped the PLMA grow to “become a vital and essential resource for suppliers and retailers around the globe”. Our sympathies go to his wife Judith, daughter Alexandra, son Peter, five grandchildren, and sister Shirley Sharoff.
Industry News
BWG Foods reports €1m in sales of gardening products
BWG Foods has reported significant demand for gardening products during the lockdown period, with sales surpassing €1m over an eight-week period. With garden centres and DIY stores closed to the public up until May 18, BWG Foods began supplying flowering and bedding plants, compost and other key gardening products to its store network, resulting in a new stream of business for many retailers. In total, over 200,000 plants have been sold across Spar, Eurospar, Mace, Londis and XL stores nationwide since March 23. The sale of gardening products through Ireland’s grocery retail sector has continued to provide a critical sales channel for Irish growers and nurseries during what would normally be their busiest trading period of the year in supplying seasonal summer produce. “We have a network of over 1,000 community-based stores across the country, meaning we had the ability to cater to a very significant proportion of the population’s gardening needs, while they respect the Covid-19 travel restrictions,” noted Willie O’Byrne, Managing Director, BWG Foods. “This is evident from the €1m sales registered during the period and is another terrific example of how our local retailers have been adapting to serve communities in these uncertain times.”
Lotto dough in Kinlough
McGOWAN’S Spar shop in the north Leitrim village of Kinlough, with a history of selling winning National Lottery tickets, has continued its winning streak after it sold a ticket worth €96,007 for the Lotto draw on May 23. McGowan’s Spar previously sold a Lotto jackpot winning ticket worth €11,179,627 back in August 2016, which was claimed by a Leitrim syndicate, while last September, a Daily Million ticket worth €1m was purchased at the lucky Leitrim
Celebrating strawberry season in style
NOTHING quite says summer like strawberry season in Ireland, and this year’s Celebrate Strawberry Season campaign, organised by the in partnership with Bord Bia and the IFA, is encouraging people to choose locally grown strawberries right throughout the strawberry season (May to November). The campaign urges consumers to replace refined sugars with strawberries as a natural and healthy alternative. “Strawberries are nutritional powerhouses, bursting with nutrients, deliciously sweet, yet low in calories,” revealed Orla Walsh (pictured), registered dietitian. “One portion of strawberries, which is about seven berries, gives you all the vitamin C you require for the day, helping us to look and feel at our best.”
Irish Soft Fruit Growers Association, store.
PayPal rolls out QR code payments in Ireland
PAYPAL has rolled out the ability to use QR Codes to buy and sell goods in Ireland and 27 other markets around the globe. From local takeaway coffee shops to selling secondhand goods, the rollout of the QR code functionality in the PayPal app allows customers to buy or sell in in-person, safely and securely, and touch-free. “Covid-19 has changed the shopping experience in Ireland as we know it,” admitted Maeve Dorman, Vice President of Global Merchant Services, PayPal (pictured). “Not only do people need security and convenience, as always, they now need to be able to sell and buy in a way that is quick, safe and involves limited social contact. Digital payments, and this QR code functionality, allow for this and could be the means through which small Irish businesses survive during the crisis and potentially thrive in the future.”
Aldi to open new Shannon store
ALDI revealed its plans to open a new store in Shannon, Co. Clare, as part of its €160m Irish store network investment programme. Expected to open in Quarter 1 2023, the new store will be located close to the town centre at Airport Road. A planning application for the 1,315 square metre store, along with an additional retail unit, has been submitted to Clare County Council. The store will be constructed in Aldi’s award-winning Project Fresh design and will be powered by 100% green electricity. There will be 106 car parking spaces available for customers, along with bike parking facilities and two free-to-use electric vehicle-charging points outside the store.
Industry News
Tesco Ireland introduces new customer counter technology
TESCO Ireland recently announced plans for a technology-based customer number and queue management system to be rolled out across its stores nationwide as it continues to respond to Covid-19. Following a successful trial at its Greystones store (pictured), the company will now introduce the monitor-based 3D imaging system nationwide, which will count customer numbers entering and exiting stores, to ensure an accurate steady flow of people throughout the day. The new screen technology is rolling roll out across the majority of stores, starting with its 60 largest Superstore and Extra outlets, in the coming weeks, with a tailored version for its Express stores in due course. This technology indicates the number of people in store at any one time, highlighting for customers when it is safe to enter, with directional arrows permitting entry, or a stop sign to advise them to wait. “This new technology is a simple, accurate way of reducing queue times and allows our colleagues spend more time helping customers,” noted Geoff Byrne, Chief Operating Officer, Tesco Ireland.
Aldi shoppers raise €20k for Our Hospital Heroes charity
ALDI Ireland has donated €20,000 to Our Hospital Heroes charity from funds raised within a week of going on sale across all 142 Aldi stores in Ireland. Such was the response from the public to the initiative, marking International Nurses’ Day on May 12, that all bouquets sold out, with 100% of the proceeds presented to the charity. Aldi also announced a combined donation of 100,000 medical grade facemasks to Our Hospital Heroes and Age Action, the national charity working to protect older people in Ireland. Pictured are Vyautaus Antulis and John Kavanagh from Aldi Parnell Street, Dublin, with Mary Moorhead, Our Hospital Heroes.
SuperValu to sell €16.5m of Irish lamb
SUPERVALU forecasts sales of €16.5m of Irish lamb in its stores across Ireland this year, as consumer demand for new season fresh Irish lamb surges. All of SuperValu’s lamb is 100% Irish-born and bred and sourced from Bord Bia quality-assured farmers. The rise in demand for lamb comes as increasingly, consumers turn to homecooked meals. One of SuperValu’s lamb suppliers is Willie Fox, a fourth-generation lamb farmer based in Co. Westmeath, and his nephew Hugh (pictured). The Fox family have been supplying SuperValu for 30 years now. “We use traditional techniques, which have been passed on for generations, as well as the latest advanced techniques. This combination of the traditional and the modern mean that we supply SuperValu with its fundraising ‘Irish Nurses Thank You’ bouquets
the highest quality of meat,” said Hugh.
News Ireland donates €28,000 to Alone
NEWS Ireland publications The Sunday Times, The Irish Sun, The Times Ireland (online) and Wireless Ireland radio stations recently donated €28,000 to Alone, helping to fund its vital work with older people facing social, health and isolation problems. The generous donation is part of the News Corp Giving programme that donates £100,000 (€111,980) to UK and Irish charities each year. As in previous years, staff were invited to vote from a list of worthy charities, with a focus this year on organisations that are providing essential services during the Covid-19 pandemic.
Lidl Ireland partners with West Cork supplier to produce hand sanitiser
LIDL Ireland has joined forces with their Cork-based spirits supplier, West Cork Distillers, to produce alcoholbased hand sanitiser in response to the coronavirus pandemic shortage. The 100ml bottles have been available in-store since May 21. “This initiative exemplifies the agility, innovation and strength of our long standing partnership with West Cork Distillers,” said Kevin Haverty, Buying Director, Lidl Ireland, “and we’re extremely proud to rise to the challenge of producing and distributing much needed hand sanitiser for our employees, and now our customers in the communities we serve across the island during these challenging times.”
Industry News
Tesco Ireland donates €120k to Covid-19 projects from Community Fund
TESCO Ireland is dedicating the fourth round of its Community Fund in 2020 to support those most in need due to Covid-19. The company is donating €120,000 to hundreds of local causes based in communities throughout Ireland. 453 community-based projects who provide mental health support services, supports for victims of domestic abuse, the homeless, and people experiencing food poverty are among those who will benefit. “As the impact of Covid-19 runs deep into our communities, we want to continue to support those most impacted,” explained Kari Daniels, CEO, Tesco Ireland. “At a time when charitable revenues are experiencing a downturn we hope that dedicating a second round of our €120,000 Community Fund will help these good causes to continue to provide their invaluable services to those who need it most in our communities.” Aoife Dilworth, Tesco Ballincollig, is pictured updating the Community Fund boards during Covid-19.
Aldi plants 15,000 native trees along the ‘Kerry Way’
AS part of Aldi’s commitment to planting 100,000 native hardwood trees over the next five years, Aldi recently planted 15,000 trees on a site in Muingaphuca in the heart of County Kerry. This is in addition to the 16,000 trees that were December 2019. The initiative is the latest step in Aldi’s Carbon Reduction Pledge, which saw Aldi achieve Carbon Neutral status at the beginning of 2019. The new plantation of native Irish woodland will help to encourage local flora and fauna, while aligning with the Government’s aim to plant 22m trees a year until 2040. Pictured are (l-r): Ruairí Foley, Deputy Store Manager at Aldi Killorglin, John Lynch, landowner, and Gerard Moroney, Southern Regional Manager with Green Belt, at Muingaphuca, Killorglin, Co Kerry.
Danone Ireland launches new yogurt range
BUSY mum and TV and radio presenter Lucy Kennedy and her children, Holly (8), Jess (3) and Jack (10), helped to launch Danone Dairy Ireland’s new yogurt range, called simply Danone. The range has been created to better support families looking to improve their eating habits and the planet with simple, recognisable ingredients, like milk, live yogurt cultures and fruit and veg combinations, with no added sugar or replacement sweeteners, in 100% recyclable pots, a first for Danone in the yogurt category. The new range includes options for the whole family, including single pots, family sharing pots, multipacks and kids’ pouches. Flavour combinations include: planted on a site in Rockfield, Limerick, in
Strawberry & Blood Orange, Peach & Ginger, Peach & Raspberry, Mango Carrot & Banana, Strawberry and plain Natural Yogurt.
AsIAm and SuperValu launch webinar to support students
THE online seminar ‘Educational Support Seminar for Secondary School Students’, from AsIAm, sponsored by SuperValu, is now live on their website, part of an ongoing series which offer support and useful information to the Autism community. The ‘Educational Support Seminar for Secondary School Students’ online seminar is given by education expert Billy Redmond. The seminar is targeted towards secondary students going back to school in September, as well as those moving on to further education. Martin Kelleher, SuperValu Managing Director, said, “As sponsors of the community support seminars, we are delighted these seminars are now online to support the autism community. Now more than ever we need to continue to support the autism community.”
One4all rewards consumers for socially distant celebrations
SPENDING our birthdays at home has now become a reality for at least a fifth of the Irish public (23%) who have had a birthday since the restrictions were first implemented and a likely prospect for a further 31% who will mark their birthday between now and the end of next month, according to new research from One4all. To celebrate the creativity that people across Ireland have been demonstrating when it comes to making a key occasion unforgettable, One4all has once again teamed up with social media star and creative personality James Kavanagh (pictured) for a competition, called Celebration Inspiration, which saw three people who demonstrated how they have been creatively celebrating key occasions while social distancing, each win a €150 One4all Digital Gift Card.
Retail Ireland: Monthly Update
COVID REOPENING WILL BE A CHALLENGE FOR RETAIL
IN May, Ibec set out a range of far-reaching new proposals to address the next phase of the Covid-19 crisis, the reopening of the Irish economy. Contained in this document is a significant tranche of measures that will help the retail sector come out of this crisis somewhat intact. Importantly, highlighted are the difficulties retailers will face with rents once they reopen.
Can we learn from Sweden?
Recently, the Swedish Government introduced measures in this space that have been green-lighted by the European Commission as lawful state aid, which we in Retail Ireland believe can be used as a blueprint to an Irish model around rent.
The Swedish Government’s scheme includes provisions that if a landlord and a tenant agree on a rebate on the rent for the period between April 1 and June 30, the Swedish state will cover a part of the rebate. Compensation may be paid up to 50% of the rebate; however, not more than 25% of the ordinary rent amount. Tenants cannot obtain an advantage of more than €800,000 and the scheme expires on December 31, 2020. In an amended budget, the Government has allocated five billion SEK (approximately €453m) for the rent rebate scheme.
The most recent announcement from the Government on further liquidity for business and action on commercial rent and rates are a welcome further step in addressing the cashflow crisis affecting so many retailers. However, as we move through this crisis, significant additional interventions will be needed to safeguard retail businesses and jobs. This must include measures to address the issue of commercial rent liabilities accrued during the shutdown, which many businesses will simply be unable to pay.
Ibec calls for a €15 billion investment
Those businesses that survive will open up into a dramatically altered economic and public health environment. In Ibec’s Reopening policy document, there is a call for a significant amount of investment of up to €15 billion to allow business to thrive in any post-Covid economy. This is not a figure that was picked lightly but was deemed necessary and fully costed.
The need for a reboot is obvious to all business leaders, especially the liquidity supports for small and medium businesses, but crucially it is also about the mechanism and channels of transmission to get the right finance, in the right way at the right time.
It is also important that focus moves beyond the survival phase and that business leads on what is an opportunity to reset the relationship between business and society and address the clear challenges that existed before the pandemic and recent general election. We need a blueprint for the future, one that creates a better Ireland and it is Retail Ireland’s and Ibec’s hope that Government takes on board the points that we have made over the past weeks to enable retail to remain on its feet and to continue to be a crucial employer in many communities across the State.
The Reboot Reimagine document is available to download from Ibec.ie/influencing-for-business.
