Supermarket Pest Analysis

Political
The current government can greatly influence the performance of EUROSPAR Supermarkets. The government has direct control over tax rates, acts of legislation, job creation-employment. Some examples of issues the government can address are wages, interest rates, and inflation and VAT rates. Another Factor within the budget that can affect the Supermarkets is the VAT rate and excise duty within the Alcohol category.
The area of alcohol selling within the Supermarkets is a very contentious issue within the political arena and one which the retail companies have lobbied heavily for no changes in the laws. We operate a voluntary code of conduct known as the RRAI – Responsible Retailing Alcohol Ireland but the Minister has the power to change the licensing laws and is being put under pressure to change alcohol selling to a defined enclosed area adjacent to food retail premises. The Public Health Alcohol Bill is now expected to

Ireland has experienced the worst economic downturn over the past seven years and this has directly influenced consumer spending and therefore Retail stores turnover. The large supermarket format was the worst hit in terms of turnover decline as opposed to forecourts - Spar Express or Spar convenience stores within high footfall areas of employment e.g. Spar Dame Street Dublin which would have felt the impact of the recession much less. Due to the decline in disposable income levels and household incomes EUROSPAR has shifted its advertising its Value Brand or Own Brand range which retails at up thirty three per cent cheaper than the branded alternative. Reduced Retail pricing and an increase in consumer special offer purchases – up to 50% of the weekly shop has led to a huge value demanding, value conscious shopper with no loyalty to the Retail brand and shops in multiple stores to avail of the value on