Shops warned off price promotions when they reopen

‘Surge consumption’ a risk for shops that tempt with cut-price deals, says lobby group

Non-essential retailers have been warned not to offer any special deals or promotions when the State eventually allows them to reopen, to prevent large numbers of customers descending on their stores.

"You need to be overtly non-commercial when you reopen to ensure you do not cause any surge consumption," said industry group, Retail Excellence, which this week issued a circular to its 2,200 members outlining a range of potential measures that may have to be introduced by shops.

These may include temperature checks for staff and customers, a ban on shopping baskets, personal protective equipment (PPE) for staff, and a suggestion that shops only allow customers inside with a maximum of one accompanying person.

Retail Excellence says it has asked the Government for official advice from the HSE for when the time comes to reopen, as the industry begins planning ahead for an anticipated future easing of lockdown restrictions.

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It said this would be likely “months and not weeks away”.

Fiscal prudence

“When Irish consumers exit hibernation, they will demonstrate fiscal prudence and more importantly, health and safety prudence,” it told its members. “We strongly advise that your communications and tone of message is one about health and safety of colleagues and customers.”

Retail Excellence suggested to its members that larger shops may choose to open up their departments on a phased basis, while those that have in-store cafés should consider postponing the reopening of those.

“We are aware that some large national retailers are planning to only accept contactless payments when they reopen. This might only be for a short number of weeks, but it is an important consideration,” it said.

Being laid off during closure period will have been “a very arduous experience for your colleagues, the vast majority of whom have never experienced this before”, it said.

“Please do not underestimate the impact that this has had on colleagues.”

Retail Excellence also warned employers that some staff might not want to return to work straight away out of health concerns.

Voluntary application process

“Thus, you might consider a voluntary application process whereby you ask colleagues who are comfortable to return to work to volunteer to do so.”

The high-profile lobby group, which is run by chief executive, David Fitzsimons, told its members that they should closely follow any health advice issued by the Government to avoid a "second peak" of infections.

“The impact of a second peak on the Irish retail industry and the economy generally would be monumentally damaging,” it said.

“The potential reputational risk of non-compliance and worse again, a potential virus outbreak in a member store, would be catastrophic. You must demonstrate to your colleagues and customers that you are fully abiding by all Government guidance and have implemented rigorous auditing and testing of same.”

It also advised non-essential retailers to plan ahead to “effectively retrain” all staff on “the new normal”, as it pertains to official guidelines that it expects to be issued in the near future by State authorities.

Speaking to The Irish Times this week, Mr Fitzsimons called for further Government industry-specific assistance for the retail sector, and he asked ministers not to “sit on their hands” to prevent a wave of retail insolvencies.

He predicted that up to 40 per cent of retailers could go bust without further industry help.

Mark Paul

Mark Paul

Mark Paul is London Correspondent for The Irish Times