Leaders of the Fed (Federation of Independent Retailers) say MUP in the Province would create a “level playing field” and allay fears of cross-border trading.

The move follows the recent publication of a paper by the Department of Finance Tax Strategy Group on tax excise. The report warned the Irish government that the introduction of MUP in the Republic in January 2022 could ultimately lead to less tax being paid due to people shopping across the border.

Stormont opened consultation on the introduction of MUP earlier this year, and the Fed responded by confirming it was strongly in favour of the move.

The Fed’s Republic of Ireland president Martin Mulligan said: “It’s certainly a good thing and would make things equal for retailers on either side of the border. It would be particularly good for those retailers whose stores are on or close to the border.”

Joe Archibald, the Fed’s president for Northern Ireland, added: “One of the main benefits of MUP for smaller retailers with off-licences is the fact that the big multiples and supermarkets will have to charge the same prices, so they will no longer be able to undercut independents by selling cheaper alcohol as loss leaders. This should level things up and give everyone a fair crack of the whip.”

The post Retailers call for minimum unit pricing on alcohol in Northern Ireland first appeared on Neighbourhood Retailer.

The latest figures from Kantar show take-home grocery sales rose by 7.4% during the 12 weeks to 21 March 2021. This is a marked slowdown compared with previous months as supermarkets start to annualise sales against the extraordinary spending in 2020. Sales over the most recent four weeks were down by 3.0% versus the same time last year.

Fraser McKevitt comments: “Spring’s arrival signals the start of a really interesting period for the grocery market. The anniversary of the first national lockdown means we begin to compare grocery sales against the record-breaking levels seen in the early days of the pandemic and growth has perhaps not surprisingly dipped over the past four weeks as a result. This time last year, Brits were adjusting to schools and offices closing and making extra trips to the supermarket to fill their cupboards for lockdown. To put that into context, shoppers made 117 million fewer trips to the supermarket this month compared with those fraught weeks in March 2020.”

Extra household spending

Grocery spending remains considerably higher than pre-pandemic levels though, andFraser McKevitt comments: “It’s important to look at these numbers within the bigger picture, and two-year growth figures allow us to examine retailer performance amid these moving parts. While grocery growth has slowed against 2020, sales are still much higher than the same 12 weeks in 2019 – up by 15.6%. As restrictions on dining out continue, the average household spent an extra £134 on take-home groceries compared with this period two years ago.”

Easter weekend

Easter weekend will bring reunions with friends and family for many people and preparations are firmly underway. Fraser McKevitt comments:“Warmer temperatures and lighter evenings mean many of us are planning outdoor get togethers over the long weekend. 61% of people are looking forward to socialising with friends again and 23% of households are planning to dust off the barbecue if the weather is kind to us.* There are signs of people making a special, even symbolic, effort this year and grandparents might be showing up with additional treats after 12 months of restrictions. Shoppers had already spent £37 million on hot cross buns and £153 million on Easter eggs by 21 March – £48 million more than at the same stage last year.”

Online growth

Online grocery growth slowed in the past four weeks, with the first signs that shoppers are returning to physical stores. Fraser McKevitt comments: “Online sales were 89% higher than this time last year, which is still impressive, but the channel’s share of the market dropped back to 14.5% from the record of 15.4% in February 2021. Overall, households made 13 million additional trips to the supermarket this month and we’re seeing growing confidence among older shoppers in particular, with 143,000 fewer over-65s making digital orders in March. Now largely vaccinated, this age group increased its trips to bricks-and-mortar outlets by 6.8% – more than double the national rate.”

Tesco increased its sales by 8.5% and once again gained share to capture 27.1% of the market, up by 0.3 percentage points compared with the same 12 weeks last year.

Asda grows market share

In the month that CEO Roger Burnley announced he will be standing down later in the year, Asda grew ahead of the market and edged up its market share from 15.0% to 15.1%. Morrisons’ sales growth of 8.7% meant a share increase of 0.1 percentage points to 10.1%, while sales at Sainsbury’s rose by 7.3% to hold share steady at 15.3%.

Ocado’s sales jumped by 33.9%, taking market share up to 1.9% from 1.5% a year ago. Meanwhile, discounters Lidl and Aldi, which have not benefited from the boom in online sales during the past year, grew by 2.9% and 1.5% respectively.

Co-op boosted its sales by 7.1%, with its shoppers visiting an average of 22 times during the 12 weeks. Iceland’s sales increased by 14.3%, with particularly strong growth among families with children, while sales at Waitrose rose by 5.1%.

*Worldpanel Plus survey of 68,678 consumers between 4 and 10 March 2021.

*Percentage share of total grocers 
** This is provided to give further context to the year-on-year growth figures, which are now comparing against the accelerated take-home sales recorded during the COVID-19 pandemic 

The post Kantar latest quarterly figures show home grocery sales rose by 7.4% first appeared on Neighbourhood Retailer.

The business group has also asked the Executive to extend the Financial Support Scheme to essential independent food retailers who can remain open but who have lost trade and footfall as a result of the majority of the businesses being closed in town and city centres.

Retail NI Chief Executive Glyn Roberts said:

“It is blatantly unfair that local independent retailers who sell books, toys, clothes and homeware are unable to open nor operate a click and collect service while large supermarkets can remain open, sell these products and continue to make substantial profits”

“We have seen significant numbers of shoppers flock to these large supermarkets over the Christmas/New Year period, buying non-essential products while the Executive does not even allow local independent retailers to operate a click and collect service”

Click and Collect called for

“The Executive needs to give these local independent retailers a lifeline by immediately permitting them to operate a click and collect service. Many of these traders will not survive this third lockdown and have already lost vital trading times at the start of December and January”

“Retail NI also wants the Executive to include essential independent food retailers, who have lost trade and footfall, in the Financial Support Scheme. Many of these businesses are trying to trade in town and city centres which are virtual ghost towns, with most of their neighbouring businesses closed.

“With offices, non-essential retail and hospitality closed, custom for these businesses has decreased dramatically and will mean they have no choice but to close, further adding to the challenges of the high street”

The post Multiples selling all the extras while independents shut “Blatantly unfair” says Retail NI first appeared on Neighbourhood Retailer.