BUSINESS
chANgINg ShoPPINg hABItS of coNSUmERS coUPlEd WIth dIffIcUlt tRAdINg coNdItIoNS hAvE SEEN hIgh StREEt – ANd gENERAl REtAIl – tAKE A mAJoR hIt REcENtlY. WhAt EffEct IS thIS hAvINg oN PhARmAcY?
REtAIl l
thE PRoBlEmS fAcEd BY PhARmAcY
ast month, the Irish Pharmacy Union (IPU) surveyed its members and found that many
pharmacists were of the opinion that the business environment had continued to decline and was, in fact, worsening.
Business costs, said the pharmacists, remained a concern, with 47 per cent reporting increases in rents, wages, insurance and energy costs, leading Eoghan hanly, chairman of the IPU’s contractors committee to comment that, ‘with footfall, sales and employment down in q3, it is not surprising that pharmacy owners/managers are less confident about the business environment and their own business prospects.’
there’s no doubt that their NI counterparts are equally feeling the strain of a changing retail environment. Just look at the statistics...
It’s estimated that one in six shops in NI’s towns are now vacant. In fact, in April, the province had the highest level of shop vacancies in the UK, with a 16.1 per cent rate reported.
At the time, retail experts immediately voiced their concerns.
‘that’s a very clear wake-up call,’ glyn Roberts, chief Executive of the Northern Ireland Retail trade Association said at the time, ‘and a clear wake-up call and a call to action to the Executive to urgently address this problem of a high level of
56 - PhARmAcY IN focUS
shop vacancy and dereliction in their town centres.’
Roberts’ comments were backed up by Aodhan connolly, director of the Northern Ireland Retail consortium.
‘there must be clear, bold and effective decisions made to support an industry which employs over 70,000 directly and more through the supply chain,’ he said. ‘the new Executive (as it was at the time) must recognise the cumulative burden faced by retailers in areas as diverse as business rates, the National living Wage and the introduction of the apprenticeship levy.’
fast forward seven months and what do we have?
Well, in November, NI shoppers were out in force, with footfall up between three and five per cent. over the month as a whole, there was growth across high streets, retail parks and shopping centres and, in fact, NI was the only UK region to experience growth across all three.
the footfall figures were particularly welcome since, in the week following the Brexit result in June, shopper numbers had fallen by an alarming 7.6 per cent, and there was particular good news for high street retailers: footfall in NI’s high streets saw the biggest increase at just under five per cent year on year, contrasting with a 7.9 per cent fall in November 2015.
“AN AdvANtAgE thAt ISN’t ShAREd WIth othER foRmS of REtAIl IS thAt commUNItY PhARmAcY PRovIdES A vERY hIgh lEvEl of PERSoNAl SERvIcE” Niall Corry
So, where does this leave NI’s community pharmacies – many of which are located on the high street – and already having to contend with the threat from both the multiples and the supermarkets in addition to dispensing margins, which are consistently being squeezed?
When it comes to challenges in the retail sector, many of the pharmacists we spoke to alluded to these existing challenges, but also pointed to increasing rent and rates as one of the major problems they face.
finance minister, máirtín Ó muilleoir, recently unveiled his proposals for a groundbreaking shake-up of the rates system.
‘A Rates Rethink: Spurring Economic growth’ includes a £22million investment in retail and hospitality businesses, along with the introduction of two pilot Business Empowerment zones.
‘I am announcing a groundbreaking approach to partnering local hospitality and retail businesses by directing a £22million stimulus
towards those sectors which are key to the survival of our town and city centres,’ the minister said at the launch of the shake-up. ‘this will increase the average award for eligible businesses to two and a half times the current levels under the small business rate relief scheme. It will mean that any business with a Net Annual value of less than £10,000 will only pay 50 per cent rates, while businesses right up to £25,000 NAv will get significant support.’
While the minister’s announcement brought some welcome news to many high street retailers – including pharmacies – glyn
glyn Roberts, chief Executive, Northern Ireland Independent Retail trade Association (NIIRtA) and colin Neill, chief Executive, hospitality Ulster, recently voiced their concern that the Executive’s Small Business Rates Relief Scheme doesn’t go far enough to help NI’s high street retailers.
‘our members consistently tell us that their rates bills are a significant
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