Budget 2014 and Consumers: How Will We Be Affected?

by ·Comments Off
Michael Noonan

Source: Independent.ie

In recent weeks, the domestic economy has been showing faint but encouraging signs of recovery. Consumer confidence has been growing, and the shadow of recession seems to be slowly retreating. The announcement of Ireland’s budget for 2014 was awaited with some trepidation. The government had warned that the days of austerity and tough choices are not behind us yet, but some held out hope that the growth we’re beginning to see might help to soften the blow. So as the dust settles, what does all of this mean for the average consumer? Shopper Discounts and Rewards has taken a look at the new numbers, and we’ll lay out the most relevant highlights for the shopper on the street.

taxes in the retail sector: the bad news

The first two tax hikes you’ll hear about are the bumps in excise tax on cigarettes and alcohol. If you’re buying cigarettes, you’ll face a €0.10 rise in price per packet, and bringing a bottle of wine home from the off-licence will now cost you an extra €0.50. If you do decide to hit the pub, each pint of beer or cider, or each standard measure of spirits will also see a €0.10 increase.

a little breathing room

VAT hasn’t moved, and that’s good news: the special 9% VAT rate charged by the hospitality industry was due to revert to the standard 13.5%, but the government decided to extend the scheme. You don’t have to be a tourist to benefit, along with hotels, this lower rate applies to cinemas, restaurants, and even newspapers. Air travel tax will be reduced to 0% from April, which will make affording a holiday next year that little bit easier, all while hopefully encouraging tourism dollars in Ireland’s direction. Keeping your car on the road shouldn’t be an extra burden under this budget, either. There’s no hike in petrol or diesel excise and motor tax will stay the same.

economic growth and exiting the bailout?

There’s been a lot of talk about this budget being “the last of the bad ones”, and after years of pain cuts and tax hikes, that’s music to our ears. Even modest 2 – 3% growth over the next year could see us free of “austerity”, and that’s what the government is projecting. Several initiatives to boost employment across the board and especially in the tourism and construction industries should help out, and Ireland continues to court international investment by retaining the low 12.5% corporation tax. While those impacted by cuts to social programs are still reeling, the long-term outlook is cautiously brighter for the first time in a long time.

In the months to come, Shopper Discounts and Rewards will be watching how the national budget actually affects our personal budget.

Sources:
Retail Ireland
Citizens Information.ie
Finfacts.ie

 

Poundland Finds Success with Irish “Dealz” Discount Shops

by ·Comments Off

These days, as we’re bombarded with more than our fair share of doom and gloom from the retail market, Shopper Discount and Rewards is always on the lookout for good news stories.
UK discount dealer Poundland had some seriously positive announcements to make this month, as they shared their record profits for the last year. Their recent expansion into Ireland is a big part of their success.

impressive numbers from the discount retailer

This year saw significant progress for Poundland, which generated a gross profit up 14.6% to £323.4m in the 52 weeks to March 31. Looking at total sales figures, there was a very healthy jump from 15% to £880m. Strong cash generation meant that the retailer’s net borrowings halved to £12.1m from £26.1m in 2012. It was also their first full profitable year of trading in Ireland, under the retailer’s Dealz format, and that expansion is hailed as a cornerstone of their recent boom.

recession-busting prices attract bargain shoppers

Smart consumers are always on the lookout for value, but when things are tight, getting the most for your money takes on a new urgency. Dealing with the downturn has sent thousands of shoppers flocking to discount shops like Poundland and Dealz in search of everything from household basics to party supplies. Even as the market makes a slow recovery, we can expect this trend to continue. The next few months should be hugely positive for the retailer: as we sidle up to Christmas, discount shops full of small treats and useful bits and bobs will be invaluable for gathering the stocking stuffers and Chris Kringle gifts you’ll need for the holiday season.

expanding through Ireland and onto the rest of Europe

In the last year, Poundland served 4.5 million customers every week. 200,000 of those were in Ireland. There are 41 shops already operating in Ireland and 11 more are planned to open in the next 15 months. Poundland chief executive Jim McCarthy says that there’s room for 50 more, as Irish customers continue to snap up bargains with gusto. It’s not hard to see the reason for this enthusiasm: 97% of all Dealz products are priced at €1.49. McCarthy says that the company’s huge success in Ireland has given them confidence to begin expansion throughout the rest of Europe in the coming years.

Sources:

Dealz.ie
Retail-week.com
Independent.ie

Make Online and Offline Shopping Work Together for You

by ·Comments Off

Shopper Discounts and Rewards is taking a look at the ways real customers handle the online/offline divide in their shopping habits. Online shopping has been changing the retail industry around the world for years, and in recent times, Irish retailers have taken a new interest in catering to an increasingly web-savvy consumer base. According to a recent survey Retail Ireland, 84% of retailers surveyed now have an online presence, each trying to claim their share of a €4.1bn Irish online market.

savings vs. convenience vs. speed

This is great news for consumers who are presented with greater choice than ever before. It’s no secret that there are unique bargains to be found online. Retailers are working harder than ever to carve out their corners, offering special web-sales, online vouchers, and discounts in an attempt to lure customers online. Ever since the birth of online shopping, the ease of comparison shopping without ever leaving your home has been a huge draw. In most cases, buying online seems like a no-brainer, but there are exceptions. Anyone who’s ever suffered through the hassle of returning a pair of shoes or jeans to an online retailer after discovering that they just don’t fit might think twice before putting items in their virtual shopping cart again. There’s also a little problem of delayed gratification when it comes to buying on the internet. Faced with “7 to 10 working days” before delivery, shoppers in a hurry might not be able to wait for their online purchases to arrive.

The good news is, it’s not all-or-nothing anymore.

try in store, buy online

Heading into your local brick-and-mortar store to take a product for a quick test drive before popping online to look for the best deal is becoming increasingly popular. Comparison shopping apps from companies like ShopSavvy.com and PriceGrabber.com make it simple to search for the lowest price online from your mobile phone. Some even incorporate barcode scanners for one-touch pricing. It takes all the guesswork out of shopping online and can lead to some serious savings.

order online, collect in store

Many of Ireland’s major retailers have begun offering this very convenient service. You can complete your bargain-hunting, check the inventory in your local store, and place your order, all online. Then, armed with a reference number or confirmation email, you simple rock up to customer service in-store and collect your item. You save time and money while dodging shipping fees and delays. It really is the best of both worlds.

The days of “popping down to the shop for the messages” remain in recent memory, but the rise of eCommerce has changed the way Irish consumers and retailers relate to each other. It’s a dynamic time in the Irish retail market, and Shopper Discounts and Rewards will be keeping an eye on developments as they arise