Ireland's food retail market is a winner

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Ireland’s economic woes have been well documented but in food retail it’s not all doom and gloom.

Just like their UK neighbours, trading up has formed part of the polarisation of demand from Irish consumers and there have been unexpected winners at the top-end of the market with independent food specialists growing.

Furthermore, food is one of the few resilient areas of the Irish economy, producing not only increased exports but generating greater domestic demand for quality Irish produce.

Buying from passionate foodies provides shoppers with welcome respite from the minimalism of discounters and allows them to indulge without breaking yet another bank.

Dining in has become increasingly popular and quality has gained a renewed importance as a result.

Provenance is also a buzzword these days. Supporting local stores and locally produced food has been pitched throughout the recession as a means of aiding local businesses to survive.

Bord Bia, the Irish Food Board, which supports speciality food producers, has seen significant growth in the sector, with some citing 2011 as their best year yet.

Specialist food retailers have a natural advantage over multiples in developing a strong personal relationship with both customers and suppliers, and add value through product knowledge and service levels.

These retailers also operate lean, agile businesses. During the heady days of the Celtic Tiger they avoided investing in the property bubble that was the downfall of many other businesses – most notably Superquinn.

Joe Doyle, owner of Dublin-based speciality food retailer Donnybrook Fair, points to the strength of the produce and customer service levels in-store as key factors in its success.

While spend per head may have declined in recent years, its footfall is up.

Introducing a cookery school has helped the retailer to generate excitement for customers and it opened its fourth outlet at Stillorgan in January 2011.

The collapse of the property market, which spelled disaster for many, allowed Donnybrook Fair to expand to new locations with reduced rents. As the saying goes, it’s an ill wind that blows nobody any good.