SAVE OUR STORES – the crisis facing CTNs
The strain on the traditional CTN is only mounting. Faced with rising taxes, increased legislation on nicotine and vapes as well as higher costs, what options are available for retailers in this sector to ensure their survival?
There is no denying that the CTN as we know it is under increasing pressure. Retail as a whole is battling rising business costs, continued changes to legislation and employment rights they must keep abreast of, all while striving for innovation and success; for the CTN sector, it is facing a somewhat unique battle as the traditional familiar format is evolving.
In the last few months a long-standing and popular CTN announced its closure, with The Tuck Shop in Warrenpoint informing their customers via social media they will close in the next few months.
According to figures from Newspread owners, Reach, there were 26 shop closures announced in 2024 and so far this year, there have been 21 closures.
“If the trajectory is sustained, there will be approximately 40 closures in 2025,” said Grace McPhail from Newspread.
While these figures don’t capture category types, they highlight the state of retail here and provide some insight to the challenging decisions being made by business owners in Northern Ireland.
Julie Brown has been in business for 50 years, co-owner of Livingstone’s Newsagents in Comber with her brother, Jim Livingstone. A typical CTN, Julie is only too aware of the challenges facing independent retailers across the region. They have had to diversify and adapt over the years to compete and bring in extra services for the consumer as well as look at trends and initiatives to make the customer’s life easier.
“Rural areas are hardest hit, and the last ACS report shows that Post Office, convenience stores and pharmacies are major requirements in local areas,” said Julie.
“With Post Office contracting the convenience store, it is the only source of access to cash for many people and more importantly, the stores are social hubs for the community with no local village halls or pubs. With many elderly people, the stores are the only source of interaction they have.
“The sector is expanding their range of services from typical CTN to basic groceries, bill payment, postal and parcel services, banking services, cards and gifting, to balloons and novelties. Stores that are proactive are looking for the latest trends.”
This is concurred by Judy Mercer, owner of Hamilton News on the Cregagh Road.
“We have had to be very inventive and grasp technology and follow trends, but most importantly, not get stuck in the past,” said Judy.
“The world has changed and so must we. Many retailers are now using Facebook, TikTok, Instagram etc and they are really successful in driving footfall.
“If the product is marketed well, the public will travel regardless of location,” added Judy.
The Tuck Shop in Warrenpoint has been faithfully serving its customers for decades and is a core part of the local community, providing essential services to young and old. Established in 1910 and first opened by Miss M Kelly, The Tuck Shop has been a critical part of the seaside town since then.
They announced their closure in a post on social media, informing their customers far and wide they would close on Friday 29th August after “many wonderful years serving the community”.
Many people were quick to voice their sadness at the news, saying the shop and its staff had been an important part of their childhood and lives for decades. Warrenpoint councillor Mark Gibbons said the shop was “much more than just a newsagents”.
“Generations of people have walked through its doors, not just to pick up their messages, but to connect, chat and to smile,” said Councillor Gibbons.
“This closure is not just the loss of a business, it’s the loss of a lifeline for many and a real blow to the fabric of our community. The people of Warrenpoint are truly gutted to see such an important part of our town disappear.”
The Federation of Independent Retailers has been raising the concerns of retailers here with those in authority and meetings with Executive Ministers are in the pipeline.
“The Fed has contacted the Northern Ireland Executive as well as the Westminster Government in recent months to flag the issue of high costs of doing business, rising taxes and the worrying upward trend in retail crime, and this will continue,” said the Fed National President, Hetal Patel.
“In coming months, we plan to engage with figures such as Caoimhe Archibald MLA, Minister for the Economy and Naomi Long MLA, Minister for Justice.
“Like other retail outlets, the typical CTN is facing considerable pressures, with increased rising operational costs, increased living wage, increased energy costs, rising levels of crime and new laws around the sales of vapes. According to British Retail Consortium figures, Northern Ireland last year experienced a 5.8% decline in footfall (for all retail outlets) – the highest in the UK.
“With increasing costs, CTN owners are reviewing staffing levels, cutting employees’ hours and taking on more hours themselves,” added Hetal Patel.
“This pressure has been growing since covid, thanks to a perfect storm of rising operating costs and decreasing margins from news wholesalers.”
