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Is the demise of "BIG" retail bad for Ireland


Disillusioned democrat

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There's been a lot of "bad" news about the difficulties in the retail sector of late and my feeling is that this is not necessarily a bad thing for Ireland as a whole. It would be devastating for those employed by or invested in the sector, but as a whole - given that 90% of the products shops like HMV, La Senza, etc., sell are imported lifestyle goods and not domestic necessities is this just not a re-balancing of the consumers priorities and an overdue realignment of incomes to outgoings.

Is there any data out there to indicate if a reduction in this type of "lifestyle commodity" spend is actually bad for the economy as a whole given the fact that it means there's probably an associated reduction in personal debt and trade deficit.
 

Clanrickard

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There's been a lot of "bad" news about the difficulties in the retail sector of late and my feeling is that this is not necessarily a bad thing for Ireland as a whole. It would be devastating for those employed by or invested in the sector, but as a whole - given that 90% of the products shops like HMV, La Senza, etc., sell are imported lifestyle goods and not domestic necessities is this just not a re-balancing of the consumers priorities and an overdue realignment of incomes to outgoings.

Is there any data out there to indicate if a reduction in this type of "lifestyle commodity" spend is actually bad for the economy as a whole given the fact that it means there's probably an associated reduction in personal debt and trade deficit.
It is good news. These foreign companies suck the life out of town centres and small family owned businesses. I am delighted to see the back of them.
 

Bobcolebrooke

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There's been a lot of "bad" news about the difficulties in the retail sector of late and my feeling is that this is not necessarily a bad thing for Ireland as a whole. It would be devastating for those employed by or invested in the sector, but as a whole - given that 90% of the products shops like HMV, La Senza, etc., sell are imported lifestyle goods and not domestic necessities is this just not a re-balancing of the consumers priorities and an overdue realignment of incomes to outgoings.

Is there any data out there to indicate if a reduction in this type of "lifestyle commodity" spend is actually bad for the economy as a whole given the fact that it means there's probably an associated reduction in personal debt and trade deficit.
If people do not spend on one thing they will spend on some thing else or save!
 

SPN

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If we want to turn the economy around then we need to start saving and investing in productive enterprises which will generate a long term income stream.


But this is Ireland ........
 

farnaby

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In the case of HMV it's likely that the consumer spend they used to get has shifted to itunes, amazon, netflix etc. - so it's still consumer spending on imports but without the sweetener of local jobs.
 

Cato

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If we want to turn the economy around then we need to start saving and investing in productive enterprises which will generate a long term income stream.

But this is Ireland ........
Our increased savings rate is continuously reported as bad news as are the falling levels of unsecured private debt. It's painful in some ways but surely to the good over the long term.
 

SPN

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Our increased savings rate is continuously reported as bad news as are the falling levels of unsecured private debt. It's painful in some ways but surely to the good over the long term.
Our increased savings rate is an anomaly because included in the calculation is the nett new lending figure. In the current economy that figure is negative - more old lending is being paid down than new lending is being issued - so the paying down of debt to foreign lenders appears as increased domestic savings.
 

SPN

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If we want to turn the economy around then we need to start saving and investing in productive enterprises which will generate a long term income stream.


But this is Ireland ........
Bullshlt !:D

........ and investing in productive enterprises which will generate a long term income stream.
 

Cato

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Our increased savings rate is an anomaly because included in the calculation is the nett new lending figure. In the current economy that figure is negative - more old lending is being paid down than new lending is being issued - so the paying down of debt to foreign lenders appears as increased domestic savings.
Ah! Is there anywhere where that effect is stripped out?
 

Potatoeman

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In the case of HMV it's likely that the consumer spend they used to get has shifted to itunes, amazon, netflix etc. - so it's still consumer spending on imports but without the sweetener of local jobs.
People will moan when they are gone as it can be handy to physically browse but for many people it’s frequently a hassle and the shop won’t always have what you want.
That said buying online can be equally frustrating as you frequently pay the same price without physically receiving anything.
 

wombat

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Lately, I have started using ebay for things I can't find locally. What I find is that postage from the UK make many items bad value - I tend to look at hand tools, fishing gear, odd ball stuff. I just bought a cast iron frying pan from a company in Donegal although it is made in the UK and the same item was available from UK at a slightly lower nominal cost but post cost nearly as much again. I also buy memory cards online from Kildare - there are opportunities for developing online shopping if a deal can be done with An Post.
 

SPN

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Ah! Is there anywhere where that effect is stripped out?
Not that I could see. It's a while back since I looked at it though.
 

Disillusioned democrat

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People will moan when they are gone as it can be handy to physically browse but for many people it’s frequently a hassle and the shop won’t always have what you want.
That said buying online can be equally frustrating as you frequently pay the same price without physically receiving anything.
I believe as a nation we're still spending too much on discretionary purchases and not retaining money within the economy - it would be depressing to think that the retailers are failing because we've found easier ways to spend too much as opposed the fact that we're spending less.
 

Windowshopper

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Well increased saving would be a god thing if the banks make use of these deposits and spread credit into the economy . . .but we know they are not going to do that.
 
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SPN

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Sounds like an Ard Fheis sounbyte.
Yep.

But true none the less.

But that won't stop our political leaders from doing other, more stupid, things.

Richard Bruton, for instance, thought that investing in Anglo Irish shares would generate a long term income stream.

And he's one of the smarter TDs.
 

SPN

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Well increased saving would be a god thing if the banks make use of these deposits and spread credit into the economy . . .but we know their not going to do that.
Only if they spread credit into productive enterprises which will generate a sustainable return.

If they pi$$ it away on fads, gombeen men with get-rich-quick schemes, and consumer spending, then we'll just be spinning our heels. Again.
 

Bonsai Experiment

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SPN,
I disagree with your fundamental position that we should all be saving money. Most economists and even the IMF indirectly, have agreed on the point that deleveraging across the board is killing the economy. Saving is deleveraging. We need people to go out and buy stuff. Even if it is a few lousy cds or dvds.
You cant tell kids to go out and spend their twenty quid on Horgans sausages and Connacht gold cheese.
 
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