Tough times but still hope for that January sale

Tough times but still hope for that January sale


Feature
Anton McNulty

THE end of the Arctic conditions will not only be good news for road users and Mayo County Council, who had been running out of grit, but also for businesses across the county who saw an unexpected slump in trade since Christmas.
Normally the post-Christmas period is a busy time for retailers with people looking to get bargains in the January sales but the simple reality was with the icy conditions people did not come out to spend their money.
The bad weather could not have come at a worse time for many businesses who would have targeted  a good start to the year following a very difficult 2009.
In one instance in Castlebar, the Australia electrical superstore Harvey Norman had to postpone the start of their post-Christmas sale after staff were unable to get to work in the morning because of the icy conditions.
A recent survey by IBEC on the economic cost of the recent adverse weather conditions estimates that the total value of economic output lost was approximately €700 million - €500m of which was in the services sector and €200m in the manufacturing sector.
Of the companies surveyed, the daily percentage of staff absent since January 1 was up 12.9 per cent on normal trends for the year, while the estimated loss in sales was put at 18.8 per cent.
Pat Ivory, IBEC Head of Transport said many companies are struggling to survive and the bad weather only added to the serious difficulties they are in.
“While much of this lost output will be recovered over the coming weeks as business returns to normal, especially given that firms have significant spare capacity, a considerable proportion of the lost output will not be recovered. The permanent cost to the economy is probably in the region of €200 million to €300 million,” he said.
As the thaw has well and truly set in, we guage reaction from the four main shopping towns in Mayo on how the weather impacted on trade.

Ballina
Sandra Cribben,
Ballina Chamber of Commerce
“In the run up to Christmas, the bad weather was a positive thing because people did not shop out of town but as it went on we got severely punished in the New Year. We found that the turn-over in the New Year sales was not as good and while it was never going to be good in the economic circumstances, it was even worse because of the weather.
People are just not coming into the sales and as a result the sales will go on longer in the town. When the schools were off for that extra week, mothers were at home and they weren’t coming in shopping. We rely on the north Mayo hinterland and we found that people were staying in their own area and not driving into town.
“From talking to business people, they were happy with the way Christmas went because they had lowered their expectations on previous years, set themselves targets and they had either met or exceeded those targets. Now they have just hit a wall. They were hoping to make money in the first half of January to see them through February and this has not happened. It was a bad start to the year and the fear is that they will not be able to sell their remaining stock in the sales. The weather has had an effect and it couldn’t have happened at a worse time and it has gone on for so long.
“Some of the traders did clear up outside their own business but people were not confident to walk around. The streets were quite and there was a much shorter shopping day, generally between 12 and four. Petrol sales were down as well because people were not travelling and there were hits across every sector. It was not the best start to the New Year and I hope businesses will survive. Hopefully people will see there is value for money and they will start to come out and shop. Hope is not lost yet.”

Westport
Michael O’Donnell,
O’Donnell’s Shoe Shop
“I wouldn’t be as depressed as the stories you would read in the national papers, these things go in cycles and take their course. Unfortunately people could not come out but we have to understand that if the day is not right people cannot come in to shop. I would be more philosophical about the situation.
“It certainly impacted on business but you have to take the overall view. People were not able to come out on Christmas Day to visit their relatives and you have to be realistic and not expect people to come out when the weather is poor. You are possibly down on what you expect but these things resolve themselves. I would say that sales are different now because one time people waited for the January sales and now they are starting before the Christmas.
“It certainly had an impact on businesses but the rate people are talking I would have reservations. When you had the wettest July in 50 years and trying to sell sandals the longer you’re at this game the more philosophical you become. My view might not be the norm but people come up with the idea that they are losing out. In fashion we are used to being weather dependent and that is the way it is. It might be different for someone who is trying to sell Christmas goods when the time is past. You cannot sell Christmas decorations after Christmas Eve.
“Unfortunately I’d imagine that in entertainment sector and dining out sector, they would have taken a hit because there is only one St Stephen’s Night and one New Year’s Eve. Certainly people with holiday homes were not around this year because they could not travel. That would have an impact on the food, service and entertainment industry. But I feel we will have to take this drop on the chin and hope for a better summer.”

Claremorris
Edel Kirrane
Pots of Fun Children’s Indoor Play Area
I found that people were not leaving their home unless it was for a necessary journey and they were going to the shops or the chemist. People left the kids in the safety of their own homes. The slump that occurred after the Christmas was directly related to the weather. Between December 1 and 20, I was up on the same time last year but on December 20, we woke up to the white Christmas that we prayed for. I will never pray for one again.
“When I went into work, I immediately had three out of six parties cancelling because of road conditions. Immediately there was a massive downturn and normally I would have a higher profit margin after Christmas and I was not worried before Christmas. During Christmas, parents want their children entertained and it would be to the likes of my place that people would come. But the weather remained bad and there was a massive downturn because people did not make journeys unless necessary. The roads were treacherous and if they were gritted it would have been a completely different story.
“Right throughout the Christmas period there were cancellations and I was down on the party income. These were postponed and people did not know when to rebook for but hopefully the thaw will bring that business back again.
“During the bad period of weather, nobody spent excessively but since the thaw occurred I have been above average simply because people have extra money in their pockets. Last week, when the schools were back I should have had a disaster of a day but I was quite busy with toddlers during the day and children after school in the afternoon.  Generally in town there is an upbeat feeling now and more people are getting into town. That is the general consensus around here and hopefully other businesses are feeling the same.”

Castlebar
Cllr Brendan Henaghan,
Henaghan’s Healthfoods
“Without a doubt since shops started opening after Christmas the weather had a huge affect because it was hard to get to town and if you did get to town the footpaths were dangerous to say the least. People had to be very cautious and it did have a negative impact. Normally, there is a shopper’s instinct to save up and try and get bargains in the sales but this year people didn’t take their hands out of their pockets.
“From a personal point of view, the post Christmas period is a big time for the healthfood business with detox and weight loss and obliviously I hope it will be still on people’s minds. The first week after Christmas you might as well have stayed closed but that’s business and you have to play the hand your dealt with.
“I feel sorry for people having sales and relying on post-Christmas sales to clear their stock. They would have been affected in a big way. The shoe and clothes shops who traditionally rely the most on post-Christmas sales would have been affected hugely. The big worry for them is will they be left with them next year or it might pan out in the next few weeks.
“With the weather getting better I have noticed in the last week more people getting out again and spending a few more euros. They are starting to spend the money they didn’t spent in the sales and hopefully they will spend that in the next few weeks.”