FOCUS ON RETAIL CLOSURES
GROWING FRUSTRATIONS OVER THE NUMBER OF RETAIL CLOSURES IN SLIGO. JESSICA FARRY REPORTS.
THERE are growing concerns over the future of Sligo’s retail sector with a number of businesses set to close in the town centre.
Gerry McGuire’s on Grattan Street is the latest shop to announce its closure, adding to the number of vacant premises in the Grattan Street/ Castle Street area of Sligo town.
Next is also due to shut its doors in June, adding to concerns over the number of vacant commercial units in town.
“Shop closures and the growing level of retail and commercial properties in Sligo which have been lying vacant for years is clearly a matter of concern,” said Councillor Declan Bree, who has been vocal about the issue for some time now.
Figures from CBRE, the international commercial real estate firm indicate that more than one in five retail outlets in Sligo town centre is vacant.
He continued: “However I come across people regularly who are interested in starting up new small retail businesses in Sligo and they tell me that when they approach property owners or agents they are quoted rental figures which they are unable to afford, particularly as they start off their business. Other property owners, including banks and insurance companies will not even consider renting out properties they own.
“Numerous properties on our main streets have remained vacant for years because their owners have no interest in renting them. This is a scandal and it is undermining the status of Sligo as a retail shopping centre.
“A major premises at the top of O’ Connell street for example, owned by a bank has been lying vacant for years.
“When these retail properties remain vacant there are knock on consequences for existing retail outlets in the street because new businesses cannot open up and the visual impact discourages shoppers. In addition the Council and the local economy lose out on potential income.”
Bree has previously called for Sligo County Council to impose rates or vary rates refunds on vacant properties. Again, he has reiterated those wishes.
“What really angers me is the fact that the owners of these vacant properties don’t pay any rates.
“In 2014 legislation was enacted to give discretion to Councils to impose rates or vary rates refunds on vacant properties. This allows Councils to collect the rates on vacant properties and at its discretion then refund a percentage of the money while retaining the balance in the Councils budget.
“I firmly believe that if the owners of vacant properties were obliged to pay the rates, or even a portion of the rates, it would encourage them to rent out the properties. In addition it would also provide the Council with a significant increase in income.
“If the Council was to retain even 25% of the rates on vacant properties it would give us an additional income of €600,000 a year which we could use on improving services.
“At our last budget meeting when I proposed that we implement such a policy, the Council executive recommended against such a move. Cllr Gino O’Boyle was the only councillor to support my proposal. I was very disappointed that the other councillors either voted against or abstained on the issue.
“Other councils around the country impose such a policy and I am at a loss to understand why Sligo is failing to do so.
In addition I would point out that if the rates were collected from vacant properties it would also allow the Council to introduce the Long Term Vacant Property Incentive Scheme, as other councils have done.
“This is a very good scheme to encourage people to set up new businesses in vacant commercial properties and it essentially provides an incentive by way of a grant for using retail premises that have been vacant for over two years or more.”
He feels that such a scheme would in-turn encourage more businesses to open up in the region: “In my view the successful implementation of the scheme would help reduce the negative visual impact of empty commercial properties. In addition it would promote job creation and employment and I believe it would also help generate and support new commercial outlets to attract increased footfall which would benefit the town.
“However again I was disappointed that Cllr O’Boyle was the only councillor to support the implementation of this scheme when I proposed it at the Council’s budget meeting.”
Fine Gael member and local publican Blaine Gaffney has echoed the sentiments of Cllr. Bree.
“Unemployment levels are down by over 25% in Sligo, consumer sentiment is up, new jobs are being announced here yet our town is continually getting worse. It does not make sense and it is clear there is something wrong.
“I agree that we have too many retail units for our population and that online is playing a major role. However, I can’t understand how Sligo town largely survived the darkest economic days in our history over the past decade. Yet since 2016 Sligo has been getting progressively worse as public spending has increased. I look at Westport, Letterkenny and Carrick all taking off and I get very angry. Who is fighting for Sligo?”
McLoughlin TD, feels Sligo town itself is ‘deteriorating’, although the growth of Sligo Retail Park is to be applauded.
“Our town centre is deteriorating before our eyes at the minute and no action is forthcoming from any of our local authorities who have the power to make changes.
“The continued growth of our out of town retail park developments is welcomed, but it is ultimately not helping with the problems which the town centre is facing. Don’t get me wrong, it is great to see a new business open up in Carraroe this week and I believe that a number of other new large scale businesses will also open there shortly. But my fear is that this will have an even worse effect on Sligo town centre.”
The cost of parking in Sligo is one issue, says Gaffney.
“On a daily basis I hear people saying that parking is too expensive in Sligo or that the reason why people won’t come into town is because the meters don’t take mobile payments, cards or bank notes or because it is to hard to get parking.
“As of today Sligo is more expensive to park in than Limerick City, Ballybofey, Castlebar, Westport, Carrick and Letterkenny. Resolve the parking issue once and for all, reduce the overall charges and make it easier for people to pay for it. Show the people of Sligo that you are willing to listen and address their concerns.”
He continued: “Secondly, I ask myself should the Council be doing more to try and attract more businesses into the town centre? Yes.
“They should be going out of their way to try and entice new business into our town. Why can’t they consider introducing a new progressive rates system for new start up business in the urban town centre for say their first two years of business? This could be implemented as follows, the first six months of trading they would only pay 50% rates, the second six months 75%, and after 1 and 1/2 years in business and as it is established they would be in a position to pay 100% rates. I am sure this is just one small measure that could help to attract new businesses to set up in town.
“In a nut shell, I believe that Sligo County Council and other local groups need to do more to stop this trend and urgently. It really is at an alarming stage. Talking is one thing, but new ideas and action are needed and fast!”
Dympna Mannion, owner of fashion boutique ‘ The Style Emporium’ has been left devastated by the retail closures.
“Seeing businesses close - it’s like a death in the family. So much work goes into a business. Nobody opens a business to fail. You open a business with so much enthusiasm and hope and then to have that all taken away by outside factors, it’s very sad,” she told The Sligo Champion.
Dympna wants to see a bigger push on tourism in Sligo: “I am appealing to an angel investor in relation to tourism here. If someone was willing to invest I would love to help promote tourism here. “I love Sligo. We have it all here. It is a magic town, with beautiful buildings, businesses, scenery to die for, beaches, fishing, sailing, horse-racing, walks - everything. I just feel that we have nobody joining the dots here. We need positive signs in Sligo telling people to enjoy their experience, and maybe that people can have the first two hours of parking for free. We need a can-do attitude.”
Dympna praised the work of Eddie Walsh and Constance Cassidy in their promotion of the area.
“The Leonard Cohen concert brought a great vibrancy to the town. Events that close off the town don’t work for most businesses. We need to make it more accessible and inviting. Parking charges are too high. Sligo is the most beautiful place in the world. I would love to promote it myself,” she continued. “If you have no tourism, you have no tax, no rates, no VAT, no PAYE, no PRSI and no Universal Social Charge, if you have no shops and the town is closing down - you have no soul,” said Dympna.
Sligo Chamber has been on the receiving end of criticism regarding the retail sector in Sligo: “We represent 300 companies so that’s around 7,000-8,000 employees. Our function includes organising networking events, and lobbying. We would lobby on behalf of our members if rates are too high” explained Aidan Doyle, CEO of Sligo Chamber. “We are not involved in legislation or rates or any of that. We do work closely with Sligo County Council, the IDA, LEOs. And we have collaborated with them successfully. Our main aim is to get investment into the region. We do represent some retailers. We do not want to see businesses close because we lose members and in turn there is a loss of income for us. We are part of the process to enhance Sligo as a town. We are always trying to encourage investment.
“We live in a commercial space, we’d find it difficult to see that places are closing down because of rates because other places are still open. These are commercial decisions made by these businesses.”
Fiona Candon, President of Sligo Chamber said: “We all have a responsibility to shop local and to support each other.”
Aidan added: “Businesses will close for commercial reasons. Retail outlets survived through the recession and are still here today,”
He added: “We were at a recruitment drive in the Building Block and these were high-end jobs. Sligo is competitive. There is a great ‘ tech-life balance’.”
Sligo Chamber will be in London this week for an event to encourage the diaspora to come back to Ireland to work. Over 200 people are expected at the event where the Chamber will promote Sligo.