Based on current outlook, the average Centra store will see energy bills rise from circa €50,000 in 2021 to up to as much as €200,000 in September 2022.
Ian Allen, MD of SuperValu and Centra, said, “The current inflationary environment, coupled with soaring energy costs, has put our retail partners under pressure like never before. Energy is the second highest bill, after labour, a store owner must meet and with sales volumes back on last year, the new crisis of rapidly surging energy costs is compounding the cost of doing business in a high volume and low margin sector.
“The average energy bill for a SuperValu and Centra will treble, and in some cases quadruple since last year. This is unsustainable. Without swift intervention, there will be structural changes to these family-owned local businesses and implications for their ability to sustain employment, continue to support sporting organisations, charities, and services in local communities and service debt.”
“Food retail is very energy intensive given the perishable nature of the products we sell and the need to run heating, air conditioning, cold storage, fridges, and freezers 24 hours a day, seven days a week. We are asking Government to support the food retail industry, which employs thousands of people in communities across the country and ensures people have access to food locally.”
Musgrave is calling for the following temporary financial support package:
- The introduction of an energy price cap
- Rebate for food retailers when energy costs as a percentage of turnover increase over predefined thresholds.
- Temporary suspension of commercial rates
- VAT warehousing
- Capital Allowance Super-Deduction which would encourage retailers to continue to invest in their businesses through building development and the purchase of energy reducing technology.
- Include food retailers in existing, and future, support schemes including
- the Government’s electricity credit for households and any similar future schemes
- the Government’s €55 million ‘Green Transition’ fund to help businesses move away from fossil fuels. Food retailers are currently not eligible under the schem
The Centra/Spar/Mace demon squid is a very interesting aspect of the Celtic Tiger. I want 90% of them gone.
- Canny gets permission for apartment block with ground floor retail
- Canny’s agent values the ground floor retail at 50 euro psqft, as if it was prime offices
- Musgrave etc get contacted and someone like the Griffin family has it fitted out and opened
- it gets staffed by foreigners on low wages who overcrowd the country
- we all get overcharged at the till
Shouldn’t be a godam penny for these gombeen men.
Most of these people knew the risks involved when they started up their shops. If you didn’t want to expose yourselves to energy costs, why did you chose to outfit your shops with inefficient fridges and lighting? That’s before we even discuss the rents and rates that these people are paying…
You pays your money, you takes your chances.