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Effects on the high street

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  • 11-04-2009 12:16pm
    #1
    lt_cmdr_worf
    Closed Accounts Posts: 272 ✭✭


    With the various levies of the Budget now set in stone, what would happen to multinationals (Tesco, HMV) and independent shops between here and December, and/or beyond?

    Taking into account:
    • Cheaper items in the North
    • Rip off culture in places, still, in the south
    • Bargains (eg special offers in supermarkets, sterling price matches etc) in the South
    • Essential items and luxury items. Will the likes of PC World, B & Q, Laura Ashley cope in the south.
    Will services (hairdressers, car dealers & services, beauticians etc) be affected, and what will happen to commuter towns (Cavan, Longford etc) by the December budget.


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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,507 Mod ✭✭✭✭johnnyskeleton


    I have little sympathy for Irish retailers - much stronger UK retail chains have gone under while the Irish survived. This implies that Irish retailers (a) were built on a much firmer base (actually true in a few cases) (b) have been making such massive profits that they hardly notice the downturn or (c) have cartels and don't wish to break ranks (e.g. vintners, the supermarkets if it wasn't for Lidl and Aldi).

    It is up to retailers to force rent reductions and other economies, and yes they have to accept reduced profits, otherwise Irish people will continue to shop up north or in the UK.

    For example, look for a DVD in town and then compare the price with UK websites such as www.amazon.co.uk or blahdvd.co.uk. Dexter season 1 costs €30-40 in HMV etc, but will costs less than €20 if bought through the internet (including P&P). Either Irish stores are overcharging because they can get away with it due to lack of competition or they are simply paying too much in expenses. An Irish DVD store could actually buy DVDs at retail prices from the UK and still make a profit, there is something fundamentally wrong there.

    In order for change to come about there has to be one of the following: either companies adjust their costs downwards and become more competitive, or companies go bust leading to stronger companies in the future.


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