Written answers

Tuesday, 2 October 2018

Department of Jobs, Enterprise and Innovation

Retail Sector

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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302. To ask the Minister for Jobs, Enterprise and Innovation the details of the new pilot scheme to support retail online capability; if it will be open to all companies; and if not, if it will be targeted towards small and micro-sized businesses. [39525/18]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Retail is the largest private sector employer in the country, and supports jobs in every city, town and village in the country. Digitalisation has increased the scope for competition in the sector, and online retailing has grown rapidly in Ireland. The increasing prevalence of online shopping is requiring retailers to adopt innovative technologies as well as creating more distinctive offerings in their physical stores.

Despite this shift, statistics from the CSO show that in 2017 66% of Irish enterprises in the Wholesale and Retail Sector reported having a website or homepage, with only 28% able to facilitate online ordering.

As an initial response to the need to support the retail sector to develop a more competitive online offering, my Department has launched a €625,000 Online Retail Scheme, administered by Enterprise Ireland. This new pilot competitive scheme will support Irish-owned SMEs with between 20 and 250 employees in the retail sector to enhance their online presence, strengthen their online trading ability, and build a more resilient business in the domestic and global marketplace both online and offline. Applicant companies must have an existing online presence (e.g. website or social media), and have a retail outlet through which they derive the majority of their revenue. This Scheme is not about taking the first steps; it is about raising the bar, in an informed, planned and strategic way.

In setting out the criteria for this pilot, our priority is to focus on companies which have started an online journey and which will have the most immediate impact. Once the pilot is complete and a cohort of companies have availed of this support, we will be able to evaluate and take on board any lessons for future initiatives in this space. We anticipate that this pilot scheme will open for applications at the end of October 2018. More information is available on the Enterprise Ireland website. .

The Local Enterprise Offices (LEOs) offer Trading Online Vouchers (TOVs) of €2,500, which are available to retail businesses with less than 10 employees to help them trade online. By the end of 2017, over 4,100 small businesses had successfully applied for a Trading Online Voucher. Up to end June 2018, an additional 580 vouchers have provisionally been approved. Results from businesses in receipt of the TOV show that their sales increased by 20%.

For retail businesses that fall outside the criteria of the trading online schemes, there are many other financial and non-financial supports available to assist individual businesses. These include the Framework for Town Centre Renewal, Project 2040 Funding, various Local Authority schemes offering distinct supports for retailers such as rates and financial incentives, development contributions, and shop-front improvement grants, and a variety of training and mentoring services offered through the Local Enterprise Offices.

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