Latest news with #RetailExcellenceIreland
RTÉ News
12-07-2025
- Business
- RTÉ News
Who scored big on Prime Day - You or Amazon?
Midnight marked the end of Amazon Prime Day, the first since it launched its dedicated Irish website, It is one of the e-commerce giant's biggest shopping events, rivaling or even surpassing Black Friday and Cyber Monday for Amazon itself. "We are excited to bring our first dedicated Prime Day to Irish customers, following our launch in March," said Ali Dunn, Ireland Country Manager at Amazon. While Prime is still relatively new in Ireland, the company said it is focused on delivering on convenience through fast delivery, savings and events like Prime Day. "We remain committed to continuously adding more value for members in all the countries we serve, including Ireland." Amazon employs around 6,500 people in Cork, Dublin, and Drogheda, and since 2004, the retail behemoth has made direct investments in its operations here of more than €22 billion. It has opened six sites across the country, including what Amazon terms "a fulfilment centre" in Dublin's Baldonnell Business Park, a delivery station in Ballycoolin, data centres, and two corporate offices in Cork and Dublin. But, long before Amazon added .ie, thousands of Irish businesses had the Irish domain. At the end of last year, the database of .ie domains was 326,562. Many have invested significantly in their online operations in order to compete with the likes of Amazon, according to Jean McCabe, CEO of Retail Excellence Ireland. "Amazon has been part of the retail landscape in Ireland for some time, and while initiatives like its Prime Day might lead to a short-term boost in sales for some retailers who use the site," she said, "the bigger picture in the industry is of numerous innovative Irish retailers who themselves consistently offer world-class products and optimal service, and have also invested significantly in their online operations so they can realistically compete with larger players when it comes to features like click-and-collect or same-day delivery." Prime 'Day' is a misnomer because while it was originally a single sales day 10 years ago, it has grown into a multi-day event. Keeping 'Day' in the title is effective though, as it suggests urgency, keeping customers engaged and encouraging them to act quickly to bag a bargain. This year, Amazon Prime Day spanned four days, running from July 8 to 11. While it was in full swing, a survey commissioned by Aviva Insurance Ireland was published, shedding light on the online shopping habits of Irish consumers more generally. There was plenty of positives for Amazon and other online retailers, as it revealed that 29% have increased their shopping online for household and clothing items compared to their in-store spending in the last 12 months. While 20% claimed to have only increased their online shopping slightly, 9% say they have increased it significantly. The survey sought to understand the key drivers as to why consumers are choosing to shop online rather than in-store for household items and clothes. The convenience of shopping from home is the number one reason amongst 54% of consumers, followed by a belief that they find better prices and discounts online (51%). Prime Day generates billions in sales within a short window for Amazon - online spending was expected to surge to $23.8 billion across US retailers, and sales were projected to rise 28.4%, according to Adobe Analytics. Prime Day is only available to Prime members; customers who have subscribed, and membership is available for €6.99 per month or €69.90 annually per year. The subscription strategy is a retail power play by Amazon. According to the company's own figures, there are more than 200 million paid Prime members across 26 countries. "Most members choose to remain with Prime once they experience the unparalleled value," it said. Prime members shop more frequently and spend significantly more than non-members, because the subscription creates a psychological commitment - shoppers want to "get their money's worth," so they prioritise Amazon over competitors. It generates consistent revenue for the online retail giant, even when members are not shopping on its site, and the customer engagement gives Amazon deeper behavioral insights, improving targeting for advertising and product recommendations. Prime also enhances the perception of Amazon as fast, convenient, and premium, so it is not just a shipping perk - it's a strategic engine that boosts sales and loyalty. Amazon uses Prime Day to entice new customers to sign up, and many remain paying subscribers, generating recurring revenue long after the event.
RTÉ News
02-05-2025
- Business
- RTÉ News
Retail Excellence Ireland calls for pause in minimum wage increases
Retail Excellence Ireland has called on the Government to indefinitely pause any increases in the minimum wage. The body has warned that retail businesses are facing an "intensely difficult" commercial environment. The statutory minimum wage increased by 38% from January 2020 to January 2025, from €9.80 to €13.50. Retail Excellence Ireland also called on the Government to reintroduce and expand the Increased Cost of Business scheme, which closed in May last year. The scheme allocated €257 million for SMEs in October 2023 as part of Budget 2024. It offered eligible businesses a one-off grant payment as a contribution towards business costs based on the value of their commercial rates bill. "We welcome the Government's decision to pause the introduction of the living wage until 2029, but we also need to see a commitment from it not to increase the minimum wage even further," said Jean McCabe, CEO of Retail Excellence Ireland. "The reintroduction and expansion of the helpful Increased Cost of Business (ICOB) scheme would also make a meaningful difference and help keep retailers' doors open," she added. REI today published a report on the retail industry by economist Jim Power - 'The Cost of Doing Business: Ireland's Retail Sector in a European Context'. The report shows that Ireland has the second highest minimum wage among the EU-27, and the seventh highest standard VAT rate. "The operating environment for many retailers has been intensely challenging in recent years," said Mr Power. "There has been a massive escalation in the costs of doing business, including energy costs, insurance costs, labour costs, and compliance costs. "Furthermore, retailers are generally very labour intensive, so labour costs and other labour market regulations in areas such as paid sick days and parental leave impose an inordinate financial and logistical burden," he added. Where comparable data is available, Mr Power said it is clear that the cost of doing business in Ireland is very high compared to our EU peers.
Irish Times
02-05-2025
- Business
- Irish Times
Retail lobby group seeks pause on minimum wage hikes
Minimum wage increases should be 'indefinitely' paused and a range of financial supports rolled out to protect Irish retailers from being forced to shut up shop permanently, an umbrella group representing the sector has said. Retail Excellence Ireland highlighted how the statutory minimum wage increased by 38 per cent from January 2020 to last January climbing from €9.80 to €13.50 and noted it was the second highest minimum wage among EU member states. It also pointed out that Ireland has the seventh highest standard VAT rate and the highest electricity prices for non-household consumers in the EU27 last year with prices here was 62.3 per cent above the EU average. It pointed to PwC's latest Insolvency Barometer which suggested there were 852 insolvencies in 2024, 16 per cent higher than the 734 insolvencies in 2023 with retail recording the highest number of insolvencies of any sector in 2024. READ MORE It called for the reintroduction and expansion of the Increased Cost of Business (ICOB) scheme, which allocated €257 million for SMEs in October 2023 as part of Budget 2024. The scheme offered eligible businesses a one-off grant payment as a contribution towards business costs based on the value of their commercial rates bill. The scheme was closed in May last year. REI welcomed the Government's decision to pause the introduction of the living wage until 2029, saying that the methodology for its calculation needed to be revisited. Ireland's status as an outlier in the EU due to our significantly higher number of high-paid jobs in sectors such as pharma and tech is skewing the data and is not truly reflective of the broader economy. The umbrella group's chief executive Jean McCabe said the report 'outlines in grim detail the intensely difficult challenge facing Irish retailers today. Not only is Ireland one of the most expensive places in the EU to do business, we also live in a global economy so the retail price of goods sold here needs to be competitive. This means Irish retailers' margins are just being consistently squeezed, with little to nothing left for many. Hence, we see doors closing across the country.' Jim Power, economist and author of the report, highlighted a 'massive escalation in the costs of doing business, including energy costs, insurance costs, labour costs, and compliance costs' and said retailers are generally very labour intensive, so labour costs and other labour market regulations in areas such as paid sick days and parental leave impose an inordinate financial and logistical burden.'
