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Taoiseach Micheál Martin’s announcement that non-essential retail will be allowed to remain open after Christmas, but that winter sales will have to be scrapped or postponed was met with relief, confusion and surprise across the industry.
While retailers said they are pleased to be allowed to stay open as Ireland prepares to enter a new phase of lockdown immediately after Christmas, they said there is a lack of clarity on how they could trade.
Many say they have no choice but to discount seasonal stocks to make room for spring and summer lines, while umbrella groups representing the sector say the sales periods have been running for weeks.
“Black Friday at the end of November really is the start of the sales period and especially this year,” said Duncan Graham of Retail Excellence.
“The announcement was new news for us but everything is very fluid. Less than 24 hours prior, I thought nonessential retail would have to close on December 26, so I’m delighted that we are allowed to stay open. “
He said Wednesday morning he would seek clarification from the minister of state responsible for Damien English’s retail sale.
Retail Ireland, the Ibec group representing employers in the sector, welcomed the Government’s decision to keep retail open under new Covid restrictions. He said the health and safety of customers and staff would remain the top priority.
Retail Ireland Director Arnold Dillon said that avoiding further retail restrictions is “key to the viability of many companies in the industry.” And he added that customers “shop very differently than they used to, spend shorter periods in stores and browse less. [which has meant] . . . that only a small fraction of Covid cases have been linked to retail settings. ”
He suggested that the announcement provides a solid foundation to “keep all retailers open and trading for the next several weeks and months. The rapid launch of the vaccine is now crucial for the entire economy to return to normal. “
Responding to the request for a postponement of the January sales, Dillon said that public health is “the absolute priority. The sector will work with the government to implement any additional measures necessary to ensure the safety of clients and staff. “
‘More confusion’
However, some people questioned how the call to eliminate winter sales could be implemented. Retail expert Eddie Shanahan described the ad as “weird.”
He said most retailers are already on sale with discounts of up to 40 percent on sale. “I think what this does causes more confusion. And while I understand the concept of wanting to keep big crowds off the streets, it shows a lack of understanding of how retail works. I prefer to see trusted retailers to manage those who walk into their stores and all the evidence shows that they have been doing well, from big box stores like Brown Thomas to stores that can seat two or three people. ”
He added: “I think whatever happens, there will be discounts for the next four to six weeks. There will be no big red signs on the windows. ”
TU Dublin academic Damien O’Reilly said sales would continue even if they are not called sales. “It can be special offers instead of sales and the main discounts like € 1,000 TV for € 100 may not be there, but the government cannot dictate prices and retailers will continue to charge what they need to keep their businesses running.”
‘Responsibility’
Finance Minister Paschal Donohoe has warned non-essential retailers to remain open during the renewed restrictions that they have “a very special responsibility, particularly on their shoulders” to keep their customers and staff safe.
He said traditional “January sales” or post-Christmas sales “can’t happen the way they have” in other years.
It expects the restrictions to cost between € 20 million and € 25 million for the duration of the lockdown, depending on the number of companies affected. The rise in unemployment will be “tens of thousands”.
He said the 2021 budget was framed in anticipation of public health restrictions at this level.
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