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

3:00 pm

Ms Tara Buckley:

I thank members for their comments and questions. The uniqueness in the independent retail grocery sector is worth fighting for because, regardless of what happens in the market, we bring an element of competition that will not be present if a few global multiple retailers are allowed to take over. What we bring to the market is valuable to Irish consumers in the long term. If the small Irish businesses that produce high-quality products do not have a route to the market through the likes of Donnybrook Fair, Nolan's or SuperValu they will not be able to get a foothold. That is why it is worth fighting for independent shops. When RGDATA was established more than 70 years ago, there were approximately 13,000 small groceries in Ireland. That market has changed significantly since then, but one of the changes that allows our 4,000 to survive is the way in which independent wholesalers have joined together in groups and symbols to form part of a bigger purchasing group. The independent trade still has a market share of approximately one third, which is much more significant than the market share enjoyed by the independent sector in our nearest neighbours, Northern Ireland and the UK. The quality and standard of shops run by independent retailers is testament to the hard work and investment these local entrepreneurs carry out in their communities. Through our market share of one third we create two thirds of the jobs provided in retail grocery. This is why we should be allowed to compete. We ask the committee to ensure that what whatever codes and regulations are introduced allow smaller independent players to compete. When others are rolling down the shutters and giving up, the independent grocers are rolling up their sleeves and getting on with it. They are also reinvesting in their businesses. In the next week or so we will be publishing research conducted by Amárach Consulting which shows that even though our members' turnover was lower in 2012 than in 2011 and they are struggling in some of the most difficult of circumstances, more than half of them are thinking about investing in their businesses. They want to invest in their staff and training. These are optimistic and hard-working people who need a break to make sure they can continue through very tough times.

I will ask Mr. Foy to address the specific questions from Deputy Ó Cuív and others regarding sourcing products, supporting Irish goods and relationships with wholesalers.