'You can only slice a cake so many times before it becomes crumbs': Budget 2025 needs to help small retailers in need

RETAILERS in Cork are hoping that the Government prioritises long-term measures to counteract rising costs, as well as cracking down on crime, with a Cork Spar owner suggesting a number of measures he’d like to see in Budget 2025 that would directly and indirectly improve the retail sector.

William O’Brien, who owns Spar on MacCurtain St, agreed that the budget was an opportunity to provide “a fair, level playing field for independent retailers”.

Spar stores are independently owned and operated, and Mr O’Brien said that this makes them important to the fabric of Irish towns and villages as “international companies will come and go but independent businesses will stay put”.

Mr O’Brien, a national executive member of the Convenience Stores and Newsagents Association (CSNA), said that controlled labour costs are critical — with the minimum wage increasing and set to increase even further, as well as extra bank holidays and sick pay increases over the last year.

“These extra charges are issues that could be dealt with through taxation relief, because at the end of the day, the consumer is going to have to pay for it — if wages go up, the money to pay for it has to come from somewhere.”

Better access to Increased Cost of Doing Business grants is also required, he said, explaining: “We need to reduce red tape in applying for funding models. There can be issues with the language in the application which excludes people from the grants.”

Another major issue in their sector that he’d like to see addressed by the Government is competition, he said, explaining: “You can only slice a cake so many times before it becomes crumbs. You read about a new shop opening by an international company, something like 100 jobs reads well on paper, but you’re only robbing Peter to pay Paul — you’re going to lose jobs somewhere else because other shops are going to be put out of business.”

Mr O’Brien added: “Security is a major issue, there is a sense in Cork that nobody’s in control.”

He explained he has had to hire security at a cost of more than €40,000 per year.

“The Government should give a tax relief when businesses have to hire private security due to an absence of policing in our communities.

“Businesses who have to employ security should be helped out, because a government has a duty of care to its people. I’d also like to see far stricter sanctions on shoplifters and those who assault people at work.”

Similarly, although not a direct retail support, “greater investment in addiction services would also see a big improvement on our streets and make our environment more attractive to do business in,” he said.

Another indirect measure he and the retail sector would like to see is supports for farmers.

“We work in tandem with farmers, they’re the producers and we’re the providers, so it’s vitally important that we look after these people.

“Driving prices lower is not always a good solution, because someone has to pay for it and it leads to fewer and fewer people growing food, so we could be thinking things are getting cheaper but actually planting a seed of trouble for later on.”

A spokesperson for Cork-based food wholesaler Musgrave told The Echo: “On behalf of our independent retail partners, who run essential businesses in local communities across the country, we are calling on the Government to ensure that Budget 2025 is pro-SME.

“The culminative impact of a number of Government employment measures, including the living wage, statutory sick pay and pension auto-enrolment, has put severe pressure on SMEs. The living wage alone will mark a staggering 67% increase in hourly wage levels from 2016 levels if it is implemented by 2026 as planned.

“These employment measures will have a particularly negative impact on SMEs in the retail and hospitality industries over the next number of years. All of these measures are being introduced when SMEs are grappling with high inflation and energy costs that have doubled since the war in Ukraine began.

“SMEs are the lifeblood of this economy and account for 70% of employment. With Budget 2025, the Government has an opportunity to introduce positive financial measures and review their employment initiatives to avoid having an adverse impact on SMEs.”