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RETAIL AND FOOD groups want the government to “level the playing pitch” and toughen laws around pop-up markets – but one major operator says bricks-and-mortar outlets are just afraid of the competition.
Earlier this month, Business Minister Heather Humphreys launched a public consultation on the Casual Trading Act 1995 and Occasional Trading Act 1979.
Both pieces of legislation govern the rules around licensing, consumer protection and the selling of various products at daily or weekly markets, as well as annual events including concerts and on-street market stalls.
Humphreys said that it was time to revisit the acts and “examine if they are still fit for purpose” due to the changes in retail and trading environments since the laws were introduced.
Lobby group Retail Excellence, which represents more than 1,700 businesses in Ireland, has said the existing laws are “obsolete” and don’t reflect modern retailing.
The organisation has previously called for a clampdown on casual trading and urged the government to increase An Garda Síochána and Revenue resources to stamp out the selling of counterfeit goods.
“What we’ve seen, in the last number of years in particular, is a significant increase in the number of markets both on public land and indeed on private land,” Retail Excellence CEO Lorraine Higgins told Fora.
She said that from interacting with the group’s membership, she believes that pop-up markets can impact physical stores’ turnover “by up to 20% on any given day”.
Higgins suggested that many market operators, particularly in the food space, have an “unfair advantage” over permanent establishments because they work off a lower cost base.
“There’s no requirement for them to have certain facilities which would be absolutely essential to a food retailer, be it toilet facilities, sinks, disabled access,” she said, adding that stall owners also don’t have to pay commercial rates to the local council like fixed businesses.
She also questioned whether the various markets, particularly those operating on private land, have obtained the planning permission required to do business.
We think it is fundamentally unfair on those retailers who have a permanent presence in an area, who are contributing to the local economy in terms of jobs and indeed to the local authorities in terms of paying their rates.”
‘Imbalance’
Thomas Burke, CEO of Ibec group Retail Ireland, welcomed the launch of the public consultation and said it is “probably overdue”.
He said the organisation has received comments from members “around their perception – real or otherwise – that there’s a real imbalance in terms of the cost of doing business in a physical retail structure and the cost attached to marketplace-type activity”.
“There’s a sense that if we have to pay a fairly hefty rates bill to the council ever year, what are the (pop-up) businesses doing … to ensure that the environment is maintained around the high-street and that there’s a steady stream of funding going back to the local authority?” he asked.
Restaurants Association of Ireland CEO Adrian Cummins said that market stalls offering takeaway food don’t have to adhere to the same strict hygiene laws as bricks-and-mortar establishments.
We feel it’s not a level playing pitch when you compare the standard of regulations that a restaurant has to have compared to a food-to-go operation … They seem to be exempt from an awful lot of regulation.”
‘It’s competition’
However Declan Vallely, the co-founder of Irish Village Markets - which operates eight weekly food markets in Dublin and several other events – strongly rejected the claims made by the various business groups, adding that they were just trying to shut out rivals.
“There’s nothing unfair. It’s competition. It’s competition which they’re unable to take on the chin. These guys have had it too good for too long,” he told Fora.
Vallely said that Irish Village Markets pays a yearly commercial rates bill and has obtained planning permission from all the relevant local authorities.
He said that traditional bricks-and-mortar sellers are simply jealous of the footfall that pop-up markets attract.
“They’ve no right to the business. Last time I checked, this was an open and democratic society.
The customer will vote with the mouths. People will come out and eat fine-quality food and choose not to come into what some would deem overpriced offerings in bricks-and-mortar restaurants.”
Vallely also strongly refuted claims that food stalls don’t adhere to the same health and safety regulations as restaurants.
He argued that, given the outdoor nature of the business, pop-up operators have to maintain higher standards when it comes to food and fire-safety control.
He suggested that restaurateurs should consider opening pop-up stalls as a means of drumming up extra business.
“My attitude is, instead of trying to fight us, look at how things should be done in a progressive way. You can develop your business if you make the effort instead of griping.”
Written by Conor McMahon and posted on Fora.ie
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id only go to a market in town one day in the working week out of five – they’re getting my money most of the time – this is just griping from bricks and mortar retailers. Feck off and let us have nice things
@Ciaran Forde:
It’s really not griping. They’ve a perfectly valid point in hat the b&m stores have overheads that the pop ups don’t.
If the operators of the pop up aren’t paying the rates, then the organisers of the market should be.
Disclaimer: I have nothing to do with either side.
@sequoia: Markets are not a threat, online is what will do the damage to bricks and mortar shops.
@Peter Hughes
I do almost all my general retail shopping online now. Much better value for money in the UK using addresspal etc. and they’re picking on farmers markets and casual traders. Pretty desperate stuff alright.
@sequoia: solution is to close the shop and open a stall then? They wouldn’t be happy with the turn over of a stall
@Padjii: Isn’t that how Marks and Spencer started out, on an everything-for-a-penny street stall?
@Ciaran Forde: Everything has to be regulated up the yahoo here, if you go into the city of Manchester in the England, they have markets that are plentiful and some stalls sell the same as the one down the street, but no griping one might sell for a little less than the other. the even have beer huts and wine huts you can buy just about anything, and the shop keepers aren’t complaining as people pop in and out of the stores too. Its just here in this country, how come the English market can work so well in Cork without all the traders going out of business? Although my money is very limited for buying food but I do try and give everyone a little so everyone benefits. Hands off our outdoor markets!
Peter . You’re wrong in terms of fresh food .Th hygiene rules for markets are way lower also
Padjii. Great idea and they could let the staff go too
As someone who often has a stall at a local indoor market this just comes across as whingeing.
We pay tax, insurance, and rent just like the B n M shops and the owner of the building pays rates.
“We think it is fundamentally unfair on those retailers who have a permanent presence in an area, who are contributing to the local economy in terms of jobs and indeed to the local authorities in terms of paying their rates.”
Does Nolan not realize that the good local markets are self employed people selling local produce and craft and that the money goes back into the local economy not to middlemen, distributors, and MNC’s.
Sour grapes and whingeing from FORA.
Ah,, Lorraine Higgins,, the answer to a question that nobody asked…..
Markets usually sell a lot of items not available in local shops, food catered is often unique and delicious, plus they are a often a great social craic. Bricks and mortar businesses could learn a lot from them. Also, market seller “good to see you, today we have …”, bricks and mortar seller, miserable face … “sorry don”t have that, no call for it” and thinking “how long before I can clock off”.
That’s how retail started in markets. Maybe the retailer’s should go back to their roots. We need more markets
@Johnny Mason: that’s pretty much their point. Small bricks and mortar business keep this country going. They pay rates, tax on their profits (which are subject to audit) and collect vat on behalf of revenue. On the other hand you have a fly in fly out outfit who operate cash only and pay no rates.
@Matt Connolly: then they need to take aim at the likes of Tesco, Aldi and Amazon that are squeezing the life out of small retailers, not some wee lad with a stall selling stuff he’s grown or produces himself
@Matt Connolly: if they aren’t paying tax on their earnings they are breaking the law so that’s a different matter.
@Hugh Jass: who said anything about not paying tax…?
I can assure you Revenue is on it…
And you’re worried about large multinationals paying over the odds…? Don’t worry their tax consultants will have it to a bare minimum
Remember, the “bricks and mortar” shops will be your Spars, your Freshiis etc; it will include huge chains. It’s more of a David v Goliath with the markets being David.
I have a strong feeling the activity could amount to cartel action attempting to stifle competition and will seek to raise it with the appropriate stakeholders in this consultation.
In any event, if the public are choosing markets for food and coffee, then adapt and up your game. There is no entitlement to a living here.
Besides, it’s the seasonal and novelty value of markets that attracts people. Not sales with haystacks of lame clearance stuff and “special purchases” that no one would look twice at.
@Conor Boden: agree , plus they are not addressing the issue of price gouging by bricks and mortar retailers in Ireland , i get it that rates and regulations have business costs but there is a history of price gouging when things are going well , the rip off republic culture was earned from widespread prices being jacked up , you only need to compare some of the high street prices in other major cities like Sydney where they pay high retail rents etc too – but can still offer much better value pricing – the retailers here have some reasons to gripe about rates but they need to look at their own business too especially pricing , there’s very few offering “great value” at the minute !!
Have the retailers considered popping up themselves?
I’ve no sympathy for retailers moaning. E_Commerce is killing them and they ain’t diversifying themselves to adapt current trends. This pop up store idea is not new either
You want the Tax payer to protect your business How dare ye protect it and pay for it yourself s
Johnny . A similar set of rules in the case of food hygiene is one of the issues raised . Would you not like to think that your open sandwich or fillet of fish was handed by someone with access to thier own toilet and hot hand wash , or maybe that’s a bit much to ask
Also being ignored is their main competition … Amazon, Ebay, and Etsy.
@WoodlandBard: Etsy is more about limited runs of handmade, unique items, though – not mass-produced products. Different niche. Maybe the retailers need to recruit better buyers. I certainly wouldn’t bother going into the sales as they seem to be nothing more than clearance sales for the buyers’s mistakes.
They have a valid point to be fair, and its a tough market out there- its v difficult for small shop sell his 2L Avonmore milk for 2.30 when Aldi down the road is selling own brand for 1.50 for eg. But the Sunday markets often sell different stuff- non- regular items, dont think they are such a threat. Methinks its the out of town Retail Parks+ Done Deal + Online + Big Retailers( tesco, aldi, lidl, Dealz ( massive growth!)..
-But its really up to us THE CONSUMER….what will we buy? Irish? Local? Quality?
I will always try to support my local bricks and mortar stores as too many are closing down. I dont mind paying more to support them, So I’ll go to town and spend a day or two looking around trying to find what i’m looking for, Then give up because nowhere actually sells it and end up buying it on amazon.
Ie, last week I needed a bog standard outdoor tap to replace my leaking one, tried woodies, homebase, local hardware and not one of them had it, so quicker just to go online at that stage.
Pop markets they might be, but stop calling them Farmers Markets, you won’t see a farmers stall at them, just overpriced goods produced in small amounts
Roy’s gourmet won’t be happy
Who cares just tell us more about the Popes visit!
It has not prevented new retailers and branches opening currently to corner footfalls
I know small business can get grants ect… But ongoing you don’t get much.
A better thing to do would be stop
Corporate Welfare.
““There’s no requirement for them to have certain facilities which would be absolutely essential to a food retailer, be it toilet facilities, sinks, disabled access,” she said, adding that stall owners also don’t have to pay commercial rates to the local council like fixed businesses.” Disabled access? they are on a square open area, they are not permanent, the food available there is probably not available in retail outlets, they are also usually dearer. As for rates for what? they pay for the space as thats all they get.
Online is way more of a threat than pop-ups, obviously excluding food…
But the rates system does need a huge over haul.. Base the rate on rent paid( or a fair rent) and have it paid by the property owner…
have your say