The event discussed the ideas and opportunities facing the grocery retailing industry, along with revealing a number of technologies and other solutions to support retailers’ businesses that are due to roll out over the next 12 months.

Held at the Kilsahee Resort & Spa in Naas, Co. Kildare, this was the first in-person MACE retailer event in more than three years due to the Covid-19 pandemic and was very well attended.

Among the new solutions showcased on the day was BWG Foods’ new predictive AI stock management system, ShopLink PRO, which leverages hundreds of complex data points to predict consumer demand for in-store products, allowing for smarter forecasting of stock requirements, while also considering business promotions and category management to deliver the next five-day sales forecasts.

The BWG team also revealed an innovative new HR Support service for retailers to manage this very important part of their business.

BWG Foods, owners and operators of the MACE brand in Ireland, also showcased a number of their latest food and beverage concepts including Háo Chi Bar, The Local Tea Company, Popsicle, Pazza @ Home and I-Scream, the exclusive ice cream offering.

Peter Dwan, sales director at MACE, said: “It was wonderful that so many Mace retailers were able to get together for this very important and informative meeting.  It’s been over three years since the Mace family got together which made today’s event even more enjoyable. Retailing evolved over this period, so it was more important than ever that we got together as we all know, retailers learn from each other.

“Businesses are facing huge challenges with the extraordinary rate of increase in energy costs as well as rising inflation, collectively we need to help each other over the coming weeks and months as we navigate this latest challenge. Today’s event showcased how technology ‘ innovation and a joined up approach will support retailers into the future.”

Caption: Padraig Delaney and Ger Kelly, (MACE Moneen, Castlebar) with Ireland rugby captain and MACE Ambassador Johnny Sexton.

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Stores are also being hit by energy and cost increases on their own account and are no longer able to find ways to offset those, he told IFCR.

“It’s certainly the case that people have held back on making secondary and leisure-based journeys – there’s no doubt about that – and there are natural problems that follow from that,” Mr Jennings said.

“I suppose suburban areas have been the beneficiary of people not going away, but certainly those in the seaside areas and those in tourist areas that would rely upon trade through the summer period are significantly down and suffering as a result.

“Energy prices, both at the fuel end of things and more worryingly at the electricity and gas end, just seem to go only one way and that’s up. And people have now really started noticing this steady increase in their costs over the last number of months – they’re finding it difficult to find a way to offset the pain that has been caused from it.”

Labour challenges

Stores and forecourts also struggled with labour challenges this summer, Mr Jennings added.

“4.2% is the unemployment level at the moment, which is the lowest in 21 years, and to all intents and purposes that is full employment,” he said.

“An awful lot of youngsters have chosen to leave the country between now and going back to college so they’re not available to you – so we have real difficulties at staff level. And it doesn’t seem as though there’s any light at the end of the tunnel in this one.”

While there have been suggestions that paying higher pay rates could alleviate these labour problems, Mr Jennings said he didn’t believe it would work.

“Even if it was the case you would be suffering significantly in terms of your ability to provide a service in a sustainable fashion, because the model that we use is one that actually relies upon a significant number of people,” he said.

Drastic measures

Retailers are having to take drastic measures as a result, Mr Jennings said.

“Sometimes it is almost counterproductive what people have to do, but needs be as needs are. There’s almost certainly a curtailing of trading hours, there’s no doubt about that, but that actually doesn’t necessarily benefit them in the short term or the long run. It puts a sticking plaster on something for a short period of time,” he said. 

“But you can’t run your business into the ground by working your workers to the bone either. They’ve got to have time off and they’ve got to have scheduled hours and everybody is entitled to their breaks and things like that. 

“It’s not something that you can just continue in that inexorable rise to try to resolve a problem by cut, cut, cut – it doesn’t work that way.

“What does happen in a case like that is that owners of a business are actually spending more and more time doing non-management matters – and that also causes difficulties for people’s mental wellbeing as well.”

Impulse purchases hit

When it comes to spend, customers are behaving more cautiously because of economic uncertainty, and that is hitting impulse purchases, he said.

“Launching a new product at the moment would be a very difficult task for a company, I would have thought, because people are already aware of the huge additional costs that are coming down the line, either for accommodation, for third level, for going back to school costs and all of those.

“It just seems to be that there’s a drag away from being able to have the niceties of life, and more and more people are being sucked into that.

“There was a statistic that came out the other day, showing the amount of people that were being affected by the cost of living and it really was almost across the board. – everybody in some shape or form was being affected in a significant fashion by these cost of living increases.”

Government help

Mr Jennings said there are ways for the government to relieve this predicament. 

“They’ve got to do a couple of things. They’ve got a budget and they certainly know there is a clamour for people to give serious consideration to placing a levy or a windfall tax on the windfall profits that energy companies are making, and I don’t think that is an unreasonable suggestion when you consider the enormity of money that is being made, many on the back of publicly provided infrastructure services,” he said.

“I think that there is a case for putting more money into the public finances and certainly if nothing else could be done, tackling both the housing and the childcare crises is absolutely crucial to get the country on some level of an even keel. The accommodation/housing and childcare issues really need to be seen as a matter of absolutely crucial priority.”

To read the full feature in IFCR, click HERE.

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As forecourt retailing faces a period of change, Gary told IFCR he recognises the need for change and incorporating alternative fuel options and how that will impact the traditional role of the forecourt store.

“As the EV market in Ireland and the subsequent demand for EV charging grows, the infrastructure must evolve to accommodate this as an option for commuters, ensuring access to charging points. As part of Ireland’s journey to Net Zero, we have a responsibility to provide access to these services that are designed to offset emissions and promote a more sustainable way of living,” he says.

“In terms of the impact that this will have on the Irish forecourt retailing market, it is important to consider the fact that EV charging will directly affect the role that forecourts play in customers’ day-to-day lives. As customers become able to charge EVs from homes, forecourts must diversify their offering for customers, innovating to provide products, services and food options that will encourage drivers to stop at forecourt stores for reasons other than fuelling up.

“Forecourts already provide much more than just fuel, offering locations for customers and commuters to stop and pick up essentials, stretch their legs, grab a coffee and a bite to eat, and recharge themselves while they’re out on the road.

“While EV charging Is increasingly factored into planning and infrastructure, having a population that is predominantly using EVs as their main mode of transport is still a long way off due to the costs and logistics involved for domestic and commercial drivers. So forecourts will continue to provide traditional fuel options for customers, and innovation will continue to play a key role in ensuring that Gala stores remain at the forefront of forecourt retailing in Ireland.”

As one of Ireland’s leading convenience groups with 248 stores within the Gala Retail family operating nationwide, the Gala Group serves thousands of shoppers daily.

The company has been keeping ahead of the curve as the market has developed, introducing chilled distribution, Gala own-brand products and fresh in-store concepts.

“One of the biggest changes in the market over the years during my time with Gala Retail has been the increased demand for fresh food and food-to-go offerings among customers, particularly forecourt customers,” Gary says.

“As the convenience retail sector has evolved, with fresh food offerings emerging as a key driver for consumers, Gala has responded by making fresh food a central part of our offering.

“In recent years we have invested heavily in the expansion of our Fresh Food team and in the development of our own exclusive range of in store concepts. The Gala Group has more Fresh Food Executives per retailer than any other convenience symbol group, demonstrating the pivotal role of fresh food in convenience retailing.”

Gala’s dedication to ensuring Gala retailers have access to innovative concepts that set their stores apart from competitors, delivering quality, convenient and food-to-go options, has proven to be a huge factor in driving footfall and increasing basket spend over the past few years.

“Fresh food-to-go is not just for people on the move. With the busy lifestyles that people are leading these days, they are also looking for high quality, convenient and fresh food-to-go options to enjoy at home and at Gala we are continuously innovating and developing our in-store offerings in order to cater for this market.”

To read the full interview, watch out for the next issue of Ireland’s Forecourt & Convenience Retailer.

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