Retail Excellence calls for ‘major intervention’ on energy costs for firms

A major intervention on energy costs is needed from the Government in the upcoming budget, representative group Retail Excellence has warned.

The group was hosting a gathering of 400 retailers in Co Kildare to be addressed by Minister Damien English.

Soaring energy costs topped  the agenda with many retailers receiving electricity and gas bills in recent weeks that are a multiple of what they were this time last year.

Duncan Graham, Managing Director of Retail Excellence, said the unprecedented nature of the energy bills being received by retailers posed a threat to thousands of livelihoods around the country.

“It is critically important that we see a major intervention from the Government in the forthcoming Budget to ensure businesses can keep the lights on this Christmas,” he said, adding that it needed to include a cap on energy costs as a priority.

“Our members don’t like uncertainty, and a cap on energy costs would ensure that retailers could at least plan for the coming months with the sure knowledge that they won’t be facing even more price hikes,” he said.

“If we don’t see an energy price cap, then we will certainly experience a poor trading season for the third Christmas in a row. Many of our members will not be able to sustain that pressure,” he concluded.

He also called for a reduction in the VAT rate and added that staffing was still a concern in the retail industry.

Mr Graham said retailers had seen their energy bills going up three-fold since the start of the year.

“They’re wondering if they’ll survive another winter. This is the third successive winter with disruption to the industry,” he said.

He said Retail Excellence had not seen business closures as yet but that they may not be far off.

“Retailers are wondering if they can fully open stores in the run up to Christmas. Normally, they would open at 7am and stay open until 8 or 9 at night. They are now saying they simply cannot operate those hours,” he said.

“Businesses that would normally look to offer seasonal employment are going ‘it’s that or paying the energy bill.’ It’s not far off a point where it’s unsustainable,” he explained.

Duncan Graham said retailers were already implementing the kind of measures being discussed by the Cabinet for public buildings, like turning off the lights when the outlet closes and turning down the heat.

He said towns were going to look a lot darker this Christmas with businesses turning off the lights at night and town centre bodies reconsidering the Christmas lighting displays this year.