Ireland - Distribution and Sales ChannelsIreland - Sales Channels
According to the most recent data, approximately 20,000 retail outlets and 2,500 wholesale outlets sell and distribute goods in Ireland. While the distribution system, especially at the retail level, still consists of small outlets by American standards, it is moving towards larger, more economically viable units to satisfy changing market needs.
Retail outlets in Ireland range from large department stores to small shops owned and operated by individuals. Although most retail outlets are small, such enterprises are decreasing in number, as efficiencies of scale and purchasing power become the major competitive factors bearing on profit margins. A trend toward larger outlets has emerged, with the formation of chains and proliferation of nationwide supermarkets with consumers favoring out of town retail parks, as well as internet retailing.
The increasing rate of commercial and industrial development, as well as suburban development, is bringing about significant changes in the distribution system. Wholesalers supply a variety of services to associated small retailers, including sales promotion, advertising, and retail training. In some cases, they have combined small retailers into a buying group in order to achieve purchasing economies and increased purchasing power with manufacturers.
The number of discount firms, especially those stocking consumer electronics and domestic appliances continues to increase, and the number of self-service stores is rising steadily. Self-service is not confined to small merchandising units as department stores and gas stations also have incorporated this sales transaction system into their operations.
The Irish food retail trade is very receptive to new food product ideas and is constantly monitoring developments in new products in the international marketplace. As few chains import directly, the major food retail chains often use specialized importers to administer the logistics of importation and distribution. Most importers/distributors have adequate distribution facilities to most parts of Ireland.
There are over 9,500 food retail outlets (i.e. grocery stores) of varying sizes in Ireland. Two distinct segments exist within the sector—the supermarket multiples and independent retailers. The food retail sector is dominated by a small number of multiple chains including Aldi, Dunnes Stores, Lidl, SuperValu and Tesco, while a number of smaller chains also operate. Many of the independent retailers are affiliated to "symbol groups" which facilitate the attainment of purchasing economies of scale through procurement from a central purchaser.