Oireachtas Joint and Select Committees

Tuesday, 5 March 2013

Select Committee on Agriculture, Food and the Marine

Retail Sector: Discussion with RGDATA and Retail Ireland

4:00 pm

Mr. Frank Gleeson:

Part of my role in Retail Ireland is to represent both independent and large retailers. We have a real mixed bag in our group. My company runs 120 stores and also supplies 220 independent retailers, with which I would have a very close working relationship on a day-to-day basis. Broadly speaking, I am not hearing many complaints. This is because the market operates in a free environment. Multiples and independents can enter the market. It is very easy to do so, but there is fierce competition. The Irish retail market is considered to be one of the most competitive in the world. At supermarket and convenience store level, one can certainly see this in terms of the quality of our retailers. The prices charged reflect the cost of doing business. The costs of doing business in this country are a great deal higher than those which obtain in other EU countries, particularly in the context of wages, utilities, etc. It is difficult for us because we do not control any of these costs and they are costs which we must bear. There are supply chain costs which are an issue for suppliers.

I will work backwards through the points made by the Deputies. In reply to Deputy Pat Deering and the Chairman, complaints can be made. I do not understand why people do not make complaints if issues arise, but I have not heard of anything in the recent past. It is an open door from that perspective. The Competition Authority compiled a report in 2009 and if it needs to be updated, that is fine. However, it contains the most recent data available to us which is factual and not anecdotal in nature. I have heard anecdotal complaints, but I would like some facts to be presented that we could investigate and deal with in a proper fashion.

I will ask Mr. Lynam to outline why we think the European code is a good idea, particularly from the perspective of our membership of the European Union. Given that we hold the Presidency, this is a good initiative which we should, perhaps, embrace and bring forward. We have encouraged retailers and suppliers to participate and are of the view that this is the right thing to do in terms of the market.

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