Under the tree since ’63 with SPAR

As SPAR celebrates its seminal 60th anniversary serving towns, cities and communities throughout Ireland, we are proud of the rich heritage our independent retailers have fostered over those six decades of service. The remarkable story of SPAR in Ireland started with the opening of SPAR Artane in 1963 and has grown exponentially to become a truly ubiquitous presence on the Irish landscape.

Since that introduction to the Irish consumer, SPAR has worked tirelessly and earned a welldeserved reputation for innovation, as well as for exceptional customer-choice, magnificent customer-service and is a well-recognised and loved brand that has been the face of many family businesses right around the country SPAR has grown into the household name for convenience shopping in Ireland over the last 60 years and is synonymous with the convenience sector here in Ireland and, of course, internationally The ethos and values that underpin our success and footprint across Ireland, and the other 47 countries where SPAR has a presence, have sustained us through the decades and will continue to sustain us into the future.

Lifeblood of communities

SPAR retailers are the lifeblood for many of the communities in which they are embedded, and, in turn, SPAR has always been committed to providing our retailers – and by definition their customers and those aforementioned communities – with the very best in convenience retailing. In essence, setting standards and driving innovation are pillars of the SPAR offering, which is why from a customer perspective, SPAR is a recognised leader in Retail Foodservice within the market. This well-earned reputation is driven by a rich heritage in food and beverage innovation built up over many years. Through a dedicated Food Innovation team, SPAR takes great pride in being innovators and trendsetters when it comes to Retail Foodservice, which is particularly evident in SPAR’s fresh food offering.

Going back generations, SPAR has been at the forefront of food innovation in Ireland. We pioneered foodservice in the convenience sector; we were the first to introduce the multi-service offering through the introduction of premium coffee-to-go to our stores. We were the first to create our own sub brands, which established a unique point of differentiation for our food-to-go offerings. This remains a constant focus of ours and, in support of this, we have a dedicated food and beverage innovation team who deliver the latest trends to our network with truly unique concepts that appeal to consumers. Crucially, we are brave and take a very entrepreneurial approach to innovation and aren’t afraid to try new things. We’re also fortunate to be able to tap into the expertise of our partners across SPAR International, meaning we’re in a unique position to identify emerging trends and preserve our first-to-market focus.

Looking ahead with confidence

This celebratory milestone is, of course, a year to reflect on all that has been achieved but, more importantly, it is a time to look forward with confidence, hope and ambition as the future for SPAR is as effervescent today as it was when the doors were opened on those very first SPAR stores in 1963.

The basis of our celebrations this year is our continuing commitment to excellence. We are rooted in it and all SPAR retailers share that same ethos and, crucially, ambition for expansion and growth within the industry We are always, together, striving to provide valueadded for our customers. In celebrating SPAR’s 60th anniversary, we are engaged in a heavy weight plan of activity across multimedia platforms, in-store activations and consumer engagement throughout the year.

Ambition

Our ambition is very clearly evident in who we work with. For example, SPAR recently partnered with renowned Irish actor Colm Meaney to deliver a powerful radio advert, rooted in storytelling and chronicling the journey of Irish society over the past 60 years while demonstrating how SPAR has been at the forefront of the most monumental changes in Irish society during that time. Another noteworthy initiative to celebrate this important anniversary includes our investment of €60,000 back into local communities through the SPAR 60th Community Fund, which will see six local community clubs, groups or programmes awarded €10,000 each, along with the chance to meet Olympic Champion Kellie Harrington and take her on in a fun series of challenges in July

Further campaigns are planned throughout the year to mark the anniversary, which includes our new CSR initiative with the Tree

Council of Ireland. This builds on an existing relationship between the two entities having evolved from SPAR’s sponsorship over the past two years of SPAR National Tree Day, an initiative to encourage primary school children nationwide to plant trees on a specified day each October Donations from the sale of selected SPAR Range products, from the beginning of May until the end of October, will be awarded to the Tree Council to fund the planting of 20,000 native Irish trees. The trees will be planted on six sites across the country with plans to invite SPAR retailers to the tree planting events for a family day out during the summer months.

Furthermore, in pursuit of our environmental ambitions, SPAR has also recently introduced two fully compostable SPAR branded bags to our business. These bags will replace the current SPAR Bag for Life, showing our commitment to the environment by removing plastic bags from all our stores. The bags bear a specially commissioned SPAR 60th Anniversary logo and complement a full suite of paperware available in SPAR stores from deli wrap to foil bags and more.

Together with our SPAR retailers, we will meet that future with confidence. Together, we will continue to work tirelessly to provide consumers with the most innovative award winning in-store offering and shopping experience they could wish for

The last 60 years have been a wonderful precursor to what promises to be a truly exciting future for SPAR in Ireland as we continue to grow, evolve and, along with our wonderful independent retailers, serve the people of Ireland. ■

What is the truth behind accusations of ‘price gouging’ in Ireland’s grocery sector?

Laura Lynott reports

Labour’s Ged Nash said he’s receiving complaints from consumers nationally about grocery prices rising “inexplicably,” within a short period, while the CSNA has accused the politician of trying to “earn cheap headlines,” as stores claim inflation is still impacting them.

The Labour TD has been campaigning for several weeks against what he feels is ‘price gouging’ in stores across the country

And earlier this month, Minister for Public Protection Paschal Donohoe stated the government will now be carefully monitoring to see that companies are not profiteering from inflation, as costs fall.

The Central Statistics Office (CSO) meanwhile reported the annual rate of inflation has dropped to 6.3 per cent in April, down from 7 per cent in March.

However, recent Kantar data has highlighted food inflation was, in comparison, at 16.6 per cent in the three months to April 16.

Any reduction welcomed

Deputy Nash told ShelfLife: “A day does not pass by when a constituent doesn’t raise the excessively high price of groceries with me. In fact, we’re getting contact from across Ireland, from consumers, providing examples of products where prices have inexplicably risen in recent weeks.

“We know from trusted research by Kantar the average price of the weekly shop on an annual basis will be €1,200 more expensive than last year

“Any reduction in the price of staples is to be welcomed. I’m stunned and a little sceptical as to why and how the major multiples managed to cut the price of milk and butter on the same day and by a similar margin.

“This kind of behaviour alone should warrant the attention of the CCPC… Food inflation of over 16 per cent is running way ahead of the official rate of inflation.

“The cost of production is nowhere near where it was this time last year, yet prices at the checkout remain elevated.

“CSO figures show record profits being recorded by Irish firms and living standards have fallen for the first time in 10 years. The ECB agrees a significant portion of the inflation we’re experiencing is [due to] high levels of profit-taking in the market, not modest wage growth. “Supermarket profits are guarded like the third secret of Fatima but the conclusions we can draw are clear Big multiples are undoubtedly maintaining high prices and profit margins in a way that can’t be justified against the backdrop of falling input costs.”

Courting press attention

Deputy Nash’s comments have angered some retailers. The Convenience Stores and Newsagents Association (CSNA) have accused the Labour spokesperson on finance, public expenditure and reform of courting press attention.

Vincent Jennings, CSNA CEO told ShelfLife: “While it may suit Deputy Nash to earn cheap headlines in calling for actions he knows are outside the remit of the CCPC, he’d be better served in taking time to understand the true nature of the food retailing business.

“Retailers react to wholesale price increases. They rarely, if ever, elect to increase the retail price unless and until the cost price structure changes.

“If there’s gouging or profiteering, it shouldn’t be considered that our independent and symbol group sector can be viewed as being guilty, as Deputy Nash would have people believe.

“Investigations into the factors surrounding the numerous wholesale cost increases would be the most fertile place to look, particularly for those suppliers and manufacturers that have applied increases substantially greater

According to Labour’s Ged Nash, “the cost of production is nowhere near where it was this time last year, yet prices at the checkout remain elevated” than comparable price increases internationally.”

When asked what “factors” have affected consumer pricing recently, Jennings stated stores were still being impacted by hikes in energy, fertilisers, supply chain shortages, wage inflation, packaging and carriage and delivery costs, the “residual effect of Covid on orders,” as well as costs related to the “Ukraine invasion.”

Price cuts

At the end of last month Lidl announced it was reducing the price of a 2 litre carton of milk from €2.29 to €2.19. On the same evening, Aldi announced it was decreasing its milk price by 10c, in line with Lidl. From there, Tesco and SuperValu highlighted cuts to its milk price by 10c.

At the start of this month, Tesco, Aldi, Lidl and SuperValu also announced butter reductions, with bread price cuts announced the following week.

The fact shops followed each other to make price reductions, has led some consumer experts to question what’s taking place.

Conor Pope, Irish Times consumer affairs correspondent, told ShelfLife: “The reality is input costs have come down dramatically in some key areas, notably transport. Petrol and diesel prices are now where they were in September 2021.

“Meanwhile the cost of energy on wholesale markets is half what it was at the height of the crisis last year. Given retailers and all producers, in general, were blaming higher transport and energy costs for rising prices, why aren’t we seeing prices fall now that those input costs are starting to fall too?

“The retailers, like everyone, are feeling the pinch, to try to keep their prices and their margins intact, so price inflation is likely to be with us for some time. Having said that, as we’ve seen recently, as soon as one retailer moves with a key product they all move.

“The reality is they all jumped when one jumped and it’s the same story with butter,” the journalist said.

“Why haven’t they done this sooner and why aren’t they doing it with more productsthe key staples.

“The reality is the crisis is hitting people on lower incomes disproportionately hard and it’s those people who need some degree of relief.”

He added that it may be “possible” to provide consumers with “relief” but that could only happen if big retailers and suppliers dropped prices.

“We need to see that happening,” he said. “I don’t think we’ll see price deflation or price returns to where they were in 2021. The best we can hope for is prices falling backrunning at 2 per cent, 4 and 6 per cent.”

He said if prices on key staples were decreased consumers would be in “a slightly better position and it will be better for everyone.”

Supermarkets’ responses

A Tesco Ireland spokesperson told ShelfLife the company following on from its retail milk prices reduction, was now “investing” in its butter retail prices, to “help customers with their household staple costs.” At the time of our interview, Tesco had not yet introduced bread price cuts.

The spokesperson said Tesco Ireland realised household budgets are “under increasing pressure” and the company confirmed it is “absolutely committed to helping our customers, by keeping a laser focus on the cost of the weekly shop.”

The spokesperson added: “Our pricing policy is always under review and we work collaboratively with our suppliers, to minimise impacts to our customers offering them the best possible value in their shopping trip. We cannot speculate on the future retail price of any product.”

A spokesperson for Aldi responded it was the “best value supermarket” and is “committed to delivering the lowest prices possible for customers which is why we have recently announced cuts to the price of milk and butter of up to 10 cent and 40 cent respectively.”

The company added that it is “working closely with suppliers and the supply chain to ensure we keep our prices as low as possible for our customers.”

Acting independently

A CCPC spokesperson stated there are no price controls for products, with traders “free to set and change their prices for goods and services.”

Under Irish competition law, businesses are required to act independently in setting their prices. “This means that they cannot collude with other sellers to agree prices,” the spokesperson added.

“In most situations, suppliers cannot dictate the selling price of goods. This practice is called resale price maintenance.”

The CCPC said it takes action against traders if it finds “evidence that a business or businesses has participated in anti-competitive behaviour or not acted independently in setting their prices”.

Price transparency

Policy and council advisor for the Consumers’ Association of Ireland (CAI), Dermott Jewell, told ShelfLife the issue during the inflationary period over the last two years had been a difficult one to address because no one could definitively state the costs each store has to pay for staff, energy, transport etc.

“Price gouging could be going on but we don’t know the costs in a particular area that stores have to pay more for It could be electricity and gas,” Jewell said.

“We don’t actually know This is where honest price transparency helps.” The consumer expert feels if companies give explanations of where their costs are coming from, right down to the payments to farmers, then consumers will understand the price.

“It’s about starting at the bottom to get costings. You’ll have some elements of what the basic price is then,” he added.

In conclusion though, despite all the views on this important topic, it seems Jewell feels there could only be one answer on the ‘price gouging’ question.

“In terms of price gouging, it’s almost impossible to consider it’s not going on,” he said.

“It certainly seems to be going on in some areas but not all. You have to draw the line and be fair in what you call out though. You can’t tar everyone with the same brush.”

Jewell felt it was “very difficult to know why energy costs take so long to come down.”

He added: “With food, we don’t know what’s really going on, as we can’t determine what determines the price.” ■