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13/02/2009
Up To 600 Small Shops To Close This Year
Figures released today by the Convenience Store and Newsagent Association show an average of 130 people in their industry are losing their jobs each week.
According to the organisation almost 50 newsagents are going out of business each month, with today's report predicting that 600 more local shops will close their doors by the end of this year, with the loss of 7,000 jobs.
The organisation's Chief Executive, Vincent Jennings, said because the losses are staggered over time, people do not realise the scale of the problem.
Green Party Senator Deirdre de Burca today called on the European Competition Commissioner to examine the central billing contracts that exist between Irish Wholesalers and convenience store chains, as she believes they are hurting small shop owners.
"Most convenience stores have contracts that force them to buy up to 95% of their goods off one of the big wholesalers. They face stiff financial penalties if they fail to do so.
"This means that they cannot shop around and buy their stock from whichever wholesaler is cheapest on the day. It also means that a local store may not be able to source products locally, but would have to buy centrally from their wholesaler.
Senator De Burca said she wanted the Commissioner to examine whether or not the "restrictive practices" are anti-competitive, and whether or not they are in the interests of consumers.
(DW/BMcC)
According to the organisation almost 50 newsagents are going out of business each month, with today's report predicting that 600 more local shops will close their doors by the end of this year, with the loss of 7,000 jobs.
The organisation's Chief Executive, Vincent Jennings, said because the losses are staggered over time, people do not realise the scale of the problem.
Green Party Senator Deirdre de Burca today called on the European Competition Commissioner to examine the central billing contracts that exist between Irish Wholesalers and convenience store chains, as she believes they are hurting small shop owners.
"Most convenience stores have contracts that force them to buy up to 95% of their goods off one of the big wholesalers. They face stiff financial penalties if they fail to do so.
"This means that they cannot shop around and buy their stock from whichever wholesaler is cheapest on the day. It also means that a local store may not be able to source products locally, but would have to buy centrally from their wholesaler.
Senator De Burca said she wanted the Commissioner to examine whether or not the "restrictive practices" are anti-competitive, and whether or not they are in the interests of consumers.
(DW/BMcC)
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