Horwath Bastow Charleton Limerick

Retailing is an essential component of any economy. There will always be good investment opportunities in retail – especially in a strong economy with changing demographics; no matter what the challenges are.

While the basic dynamics of the sector are always the same, retailing is encountering major changes.

The property boom and the associated mobility of trade has
brought increases in fixed costs, increased competition, suburbanisation and a much increased volatility in the retail landscape.
Internet and technology have brought significant changes, albeit in a more subtle way than predicted.
Economic prosperity means that retail spending is growing
and specialisation and niches are multiplying, while labour and other fixed costs are increasing rapidly.
Retailers have had to adapt to major changes in the recruitment pool and the use of technology within retail operations.
Merchandising and distribution are much more sophisticated and critical to success.
Access to capital, low cost of funds and low barriers to entry
have brought increased pressure on margins. More and more
independent owned shops move into membership of central
buying groups as a result.
Franchising and branding generally are re-defining the whole sector. And yet, the service factor, shopping-as-lifestyle-experience and the relationship-management opportunity all ensure that retailing will never be a simple formula.

We work closely with our clients in the growing level of professionalism in this sector. Margin analysis, purchasing and administration efficiencies are leading to stronger levels of profit. Well-run outlets are achieving returns that allow for acquisition and expansion.

Horwath Bastow Charleton Limerick specialises in advising retailers in many areas including:

Financial analysis of retail operations
Financing for acquisition or expansion
Acquisition due diligence Valuation of retail operations
Maximising financial returns on disposal
Structuring the property elemen (e.g. rent v. buy; swap deals;
sale-and-lease-back; equity release; surplus property identification, key-money, obtaining developer incentives, etc)

In this day and age, you are at a competitive disadvantage if your accountant’s only contribution to your business is the annual tax returns/audit. There is too much change, happening too quickly, in the financial environment in which retailing operates.

For more information please email:

Con Quigley

E: cquigley@hbcl.ie

Liam Hession

E: lhession@hbcl.ie