Retailers say cold spell could drive struggling small businesses to wall

CHRISTMAS SALES:THE HEAVY snow and freezing conditions have proved to be the nightmare before Christmas that most retailers were dreading, as Arctic-like conditions have seen trade in many shops drop by as much as 50 per cent this week.

Retailers have expressed concern that the cold spell may prove to be the tip of an iceberg which could sink many businesses in the new year.

Most shops around the State experienced a tough start to December as a combination of snow and concerns about the Budget kept many people out of the shops.

Retailers were able to draw some comfort, however, from the fact that many purchases were postponed rather than lost. It is a different story this week.

Torlach Denihan of Retail Ireland said the effects of the current cold spell would be more severe as retailers were “looking at lost business which will not be replaced”.

He said last week was good for retailers, with many reporting a significant bounce in trade, but any hope they were in for a happy Christmas had been dashed.

Mr Denihan said the weather would make survival all but impossible for many retailers. “There will be closures, undoubtedly. Many of them would have happened anyway but this weather has tightened the noose around the necks of some businesses.”

He said Retail Ireland had heard from its members that the second and third weeks of December were good but he cautioned that the chances of a sustained recovery in the retailing sector had taken a major knock with this week’s blizzards.

According to retailers, staff are making it into work and supplies are being delivered, albeit at a slower pace than normal, but the problem is the absence of customers. Many retailers in Dublin stayed open late on Monday night but once the snow started falling, the city centre all but emptied. Footfall was reportedly very low yesterday afternoon.

The director of the Dundrum Town Centre, Don Nugent, said he expected business yesterday to be about 70 per cent of normal. “We had a good week last week and were able to reclaim some of the business we lost earlier this month,” he added, “but the first part of this week has presented significant problems for us.”

Bob Johnston of the Gutter Bookshop in Dublin’s Temple Bar described snow in the week before Christmas as “a retailer’s worst nightmare”. He said it had been a very tough year for the State’s independent retailers and said most were “relying on Christmas to see them through”.

He urged consumers to shop in the local businesses in the few days left to them to complete their Christmas shopping.

“If people value the small businesses in their local community that they should support them as much as they can,” Mr Johnston added. “I am not saying people should go out shopping this week for the sake of it but there are a lot of small businesses out there who are relying on community support this year.”

Anthony Ryan of the eponymous department store in Galway said business was holding up. While the city has been spared the worst of the snow in recent days outlying areas have been badly hit, he added.

“The first part of the month was tough but we have made up for a lot of those lost sales since then,” Mr Ryan said. “People are finding it tough to make it in, undoubtedly, but for the most part they are doing it.

“People have a real deadline to meet here when it comes to their shopping and they’re meeting it.”

He said the shop was doing a roaring trade in electric blankets and duvets as people splashed out on staying warm at night.

Some sales have started already with Coast, Aldo and A-Wear selling stock with discounts of up to 50 per cent and Brown Thomas offering 20 per cent reduction on much of its winter stock.