Grocers fear taxes and competition

TAXES and competition are the primary issues of concern to grocers and off licence owners, according to a survey.

The independent retailers want action from the Government in relation to taxation levels, excise duties and black market trading.

The survey, carried out by Shelf Life, the grocery and off licence trade publication, asked retailers what they thought would adversely affect their business over the coming year.

Eighty one per cent of respondents said their business would be adversely affected by taxation and excise charges.

The retailers had a range of worries in relation to competition. More than two out of three (70 per cent) said they were concerned about the possibility of a price war breaking out between the major multiples.

Seventy three per cent were worried about local competition and 67 per cent were worried about the big stores opening for longer hours, especially Sundays.

Thirty six per cent said they were concerned about the growing trade in black market tobacco and alcoholic drink.

The illegal tobacco trade is now estimated to be worth between £12 million and £15 million a year, and accounts for one third of the total sales of roll your own tobacco.

Ms Colette O'Connor, editor of Shelf Life, said retailers were also worried by the trend whereby large multiple outlets were now opening "stand alone" off licences and newsagents.

There was little the retailers could do to combat this pressure, other than to urge customers to remain loyal to the local, independent trader, Ms O'Connor said.

She suggested the Government might consider "capping" the amount of the market which could be held by any one group. At the moment, Quinnsworth/CrazyPrices has nearly 25 per cent.

Ms O'Connor said retailers also fear competition from British specialist stores that might move into the Irish market. She gave as an example Iceland, a British chain which specialises in frozen foods and has recently opened two outlets in Dublin.

"In future, we will see fewer pure independent retailers, because they are coming under such severe pressure. Convenience store operators will experience growth in 1997, I believe, but more of them will join `symbol' groups such as Spar, Centra and SuperValu."

"Ten or 15 years down the road, there will really be very few independent retailers as we know them now," Ms O'Connor said. Independent retailers will not be able to compete in terms of training, marketing and merchandising, she said.