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The Irish retail sector is on the crest of the wave, with year-on-year growth currently at 9.9pc (July 07), significantly higher than the current EU zone average of 2.2% growth. But while the overall picture may be positive there are some worrying trends for Irish retailers. Operating costs jumped 6pc in 2006 and currently stand amongst the highest in Europe, driven by more expensive utilities, rent and labour costs. Whilst UK food price inflation rose 4.1pc in 2006, equivalent Irish prices rose by less than 1pc. Add to this the familiar retailing challenges of demanding and more promiscuous consumers, staff retention, margin pressures and the growing trend towards ethical retailing and it is clear that the trading environment in Ireland will only get tougher.

A traditional response from retailers to increased trading challenges has been, and continues in part to be, price-based competition. Yet market evidence does not point to an Irish consumer solely sensitised on price. The successful retailer will not necessarily be the one who offers the cheapest product, but the one who can offer time and complexity savings, an enjoyable shopping experience, stock on shelves, faster check-outs, helpful staff, positive ethical and local impact – all of this all of the time.

We believe that technology has a crucial role to play in addressing the above challenges. With the advent of internet protocol (IP), the proliferation of broadband and the continuing convergence of IT and communications, there is a huge opportunity for retailers to exploit technology to improve in-store and back-office performance.

eircom has identified retail as a key market vertical and has designed specific propositions that are based exclusively on delivering increased value to the retailer and addressing the challenges they face. Our retail solutions can be grouped into four areas aligned with the challenges faced by retailers:

• Reducing cost and simplifying operations: a secure IP network is becoming a strategic asset that is capable of delivering a wide range of benefits. For example, an IP-based network can carry not just critical data traffic, but also all voice and video, negating the need for running separate networks. This platform can then be the basis for carrying a host of additional services that further address cost reduction and operational improvements e.g. telemetry solutions to control spiralling utilities spend. Right now, eircom is working with Musgrave to deliver a flexible and agile IP-based infrastructure that will dramatically improve the communications and operational performance of the Group.
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• Growing revenue and market share: from Meteor in mobile, to broadband solutions packaged with content services (eg, Setanta Sports online), eircom has a strong portfolio of cutting-edge consumer products and content services to help the retailer to increase sales and diversify into new categories. eircom also provides in-store services such as public internet access kiosks and Wi-Fi networks that improve the overall customer experience.
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• Improving the buying experience: an IP network can provide the core platform to deliver a range of customer-facing tools, from digital signage to shelf-edge labelling, all run from a central system. It can also support electronic funds transfer (EFT) processing to enable speedier transaction times. Using its web design and development expertise, eircom can also help retailers ensure that an online shopping presence is consistent with the bricks-and-mortar experience.
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• Optimising the supply chain: already market leader in electronic data interchange (EDI) solutions that can control the complexity and costs of supplier management, eircom’s IP networks can also be extended to accommodate key external customers or suppliers, creating a secure digital supply chain that increases efficiency and profitability. Our managed RFID solutions (at pallet, case or item level) represent leading edge industry capability that will deliver transformational benefits to those companies willing to deploy this exciting and available technology.