Northern Ireland’s retail sector is entering a period of sustained growth, but local independent retailers still need support from the public, a business event in Belfast heard this morning.
At the first in a new series of Danske Advantage events, Danske Bank said it had revised its growth forecast for the sector upwards to 4.6 per cent in 2015 from its earlier forecast of 4.3 per cent, with growth of 2.6 per cent predicted in 2016.
Danske Bank held the event in partnership with the Northern Ireland Independent Retail Trade Association (NIIRTA), which launched its annual Independents’ Day campaign. The initiative celebrates the contribution local retailers make to our economy and urges people to shop at independent stores on July 4.
Danske has launched the Advantage series to give clients and prospective customers an opportunity to hear from leading speakers in industry sectors that will be key to the ongoing recovery of the local economy. The ‘Leading the way for local retailers’ event addressed the challenges and opportunities created by changing consumer demands, the role of town centres and the continued growth of online retailing.
Kevin Kingston, Danske Bank’s Deputy CEO & Managing Director Business Banking said:
“Banking and retail have much in common, particularly when it comes to dealing with change. The retail sector is adapting to new realities, with many retailers now blending the best of what technology has to offer with the basic human need for community interaction. The online revolution has also changed how people do their banking and how they pay retailers. For example we now see more transactions done by smartphone than through any other channel and there was a 300 per cent rise in contactless payments made in the UK last year.
“We believe the economic landscape for retailers is only going to improve in the year ahead and Danske Bank is committed to supporting the growth and success of the local retail sector.”
Danske Bank last year approved almost £200m in lending to the sector from small independents to the large multiples. It expects this to increase, noting that it has approved 30 per cent more in lending volumes to the sector in the first quarter of 2015 than the same quarter last year.
Glyn Roberts, CEO of NIIRTA, said: “It is fitting that Danske Bank decided to focus the first of its Advantage events on the retail sector as it is the largest sector of the Northern Ireland Economy.
“Independents Day is about celebrating the contribution the local retail sector makes to the economy. On July 4 and in fact for the whole of the month, we are urging local shoppers to make it their civic duty to support independent retailers, restaurants, bars and other businesses to ensure they continue to thrive. With the right assistance, independent retailers can be at the cutting edge of the new private sector economy.”
Also addressing the breakfast event, Social Development Minister Mervyn Storey MLA said: “Over the last five years my Department has invested over £100 million in our town and city centres to improve their physical appearance. My Department has undertaken Public Realm Programmes, Comprehensive Development Schemes, provided Urban Development Grants and have carried out a range of activities to help reverse economic and physical decline.
“This year’s Independents' Day campaign will, once again, serve to promote and celebrate independent retailers, and highlight the significant contribution and commitment that they make in regenerating and reinvigorating our town centres. I fully support the campaign and I know that those taking part in the initiative will continue with the good work they do on a day and daily basis to promote and support their local retailers.”
The event, chaired by Jim Fitzpatrick, also heard from an expert panel of experts including Pete Boyle, owner of Argento, and Colin Conway from Newell Stores.
The discussion ranged from the use of online sales and social media to drive sales, to town centre regeneration and the pressures facing retailers from rising rents and rates.
An audience poll conducted by Turning Technologies on instant electronic voting technology showed 39 per cent of those who voted said online sales were critical to their businesses, while websites and social media were key tools for 57 per cent of attendees. The audience of retailers also said political stability would be the best thing government could do to support the retail industry, with 44 per cent saying it was the top priority.
