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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Supermacs owner Pat McDonagh, whose Plaza Group owns nine service stations across Ireland, said people should think about stocking up on tinned goods and other long-life foods such as dehydrated, dry and vaccum-packed rice, potatoes and pasta

Mr McDonagh says he is concerned that Irish families are still not prepared for how difficult times could get over the winter months.

“I would be recommending people buy long life food! I do honestly think that people should stock up,” Mr McDonagh said.

“I would be concerned though that there could be a scarcity of food towards the end of the winter up towards December, just with the way things are with the war in Ukraine – it has a massive knock-on effect.”

Mr McDonagh said he has seen a 40% increase in the cost of beef he buys for Supermacs.

“Look, the cost of fuel and food is going to continue to grow. The cost of beef to ourselves has gone up 40% likewise with chicken,” he said.

“I think you’ll have a lowering of the food productivity in this country – I can’t predict what happens but I’m assessing it in my own way.”

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CEO Brian Donaldson predicts that one key trend of the future will be the larger format site as the forecourt delivers more for local communities.

Speaking to IF&CR, he said: “I think that in retail the most important thing is always location – when we’re looking at businesses, we ‘re looking to develop those locations where there is a large catchment of houses and where people are working every day. They’re always going to require your services no matter what form of transport they use.

“Coffee will continue to be a staple of what stores will highlight – people will go where they can get a good  coffee and where the quality is consistent in store.. Stores will also need to have a good extensive range of groceries, fresh and chilled, including dairy products, meat products and baked goods.

“People want to be able to come in and get everything in one visit rather than multiple visits to different stores. We could be seeing dry cleaners, pharmacies – basically anything that gives people another reason to come to the store is important including fast food, which we have already introduced at some of our sites.

“Another thing that is going to be very important is the look and feel of how the store is presented and good customer service is very much to the fore.”

The forecourt itself is expected to undergo major change, not just in terms of the range of energy and fuel products it supplies but how it is laid out, Mr Donaldson said.

His comments come as Maxol announces it will be carrying out extensive works at three sites in Downpatrick, Kinnegar Holywood and Edenderry where EV charging, more services, and retail and hospitality-based outlets will be the norm.

The company has also announced a €20M investment for 2022 across multiple sites including Sandyford in Dublin, Castletroy in Limerick, Kilkenny, Clarecastle in Ennis and Donore Road.

“Our view is that there is still a large business in selling petrol and diesel for the next 10 years and more. But by the mid point of this decade you will see more charging points for electric vehicles as more of these are sold in the market,” Mr Donaldson said.

“Then we’re looking to green hydrogen which we see as being the right fuel for HGVs and commercial vehicles, but that is still very much in development. You only have to look at what Wrightbus are doing with some of the councils in terms of hydrogen buses being used to get an insight into what’s possible.

“What we would see in the future is that a wider range of energies and fuels will be sold from our sites, but to accommodate all of that, you need a bigger footprint and bigger sites,” Mr Donaldson said.

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Ireland’s number one family-owned forecourt retailer has launched Pit Stop Picks, a three-month campaign featuring special promotions and in-store offers on products that customers will need for any summer activity they might be planning.

Maxol’s Pit Stop Picks, available until September 8 will include family deli deals, Grab & Go meal deals, Maxol’s exclusive ROSA coffee and N’ice cream, a range of convenience meals from Fresh Choice Kitchen, indulgent and healthy treats, car care accessories and lots, lots more.  There will also be opportunities to win great prizes such as tickets to Tayto Park and staycation vouchers.

Maxol is collaborating with travel, wine and lifestyle blogger, Nadia El Ferdaoussi who will share her favourite Pit Stop Picks with followers while enjoying her travels, adventures and hikes across Ireland this summer.  Nadia will also be asking her followers for their #PitStopPicks suggestions.  From the best places to stay, to the best things to do, from well-known landmarks to some hidden gems and of course, their essential snack suggestions for every trip.

With service stations¹ across Ireland, customers will have their pick of the pit stops with Maxol this summer.

¹Pit Stop Picks available at participating company owned Maxol service stations in ROI

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