A recent anonymous survey of small local businesses conducted by the Killarney Advertiser has found that more than one in three (35%) small local businesses in Killarney are either not profitable or  are close to breaking even. 

A similar percentage said that they may have to let go of staff if the current situation doesn’t improve, while 19% of respondents said they will either have to explore rent/rate reductions or consider closing all together. 

Responses to the survey also highlighted parking issues, footfall, and rising costs of operation as real challenges to our small business community.

Over the past number of weeks the Killarney Advertiser has liaised with the Killarney Chamber of Tourism and Commerce and the Killarney Town Retail Association to collect responses from thirty-eight small town businesses that are selling a wide variety of products and services. 

58% of respondents cited parking difficulties as a significant deterrent for customers with further feedback from the businesses saying that it is affecting footfall and revenue. Highlighting the specific parking challenges in Killarney a number of retailers responded to the issue:

“Killarney retail is in trouble…town parking issues have been known for a long time yet nothing is done”.

When asking local business owners what can be done to address the issues they suggested better parking schemes by Kerry County Council such as free parking for short lay-overs and reduce the pedestrianisation of town centre streets to allow for on street parking for the elderly and disabled.

In other findings, 63% of businesses reported customer footfall/sales as a key business challenge with one business commenting, “too much tourist accommodation taken out of the system leading to footfall reduction and spend reduction”. Two separate respondents reported a 40% and 50% reduction in shop footfall last year”.

50% of businesses expressed concern about energy and rent & rate costs with one  business owner saying that the “increase in minimum wage, VAT rates, and energy costs are not sustainable for small businesses. Something drastically needs to be done by government locally and nationally”

Another businesses added, “the asking price for rents in our town is unrealistic, probably leading to more units than necessary being unoccupied. A reduction in rates and VAT should be looked at to counterbalance the demands of increased minimum wage, higher sick pay commitments and the upcoming pension contribution.”

A number of local businesses highlighted an increase in anti-social behaviour and a lack of a Garda presence on our streets as another major challenge.

One business said that “begging and anti-social behaviour has increased dramatically” while another business said they have seen a “shocking increase in shoplifting and theft and little or no support from the authorities” 

Other responses called for a more diverse range of shops and for a retail strategy to be introduced, “Encourage a more diverse variety of shops to encourage people to come to Killarney for a family retail experience! More parking is essential! It has turned into a town for drinking only! Not family friendly at all.”

Reaction

Anthony Walsh  - Killarney Chamber, Retail Chairperson
Reviewing the results of this retail pulse survey it is imperative the voices of retailers in Killarney are represented and a meeting with the Killarney Municipal Council is scheduled to discuss some of these issues we are facing. The Killarney Chamber is here to promote and support this important retail campaign. With a few businesses closing in the town centre, we need a strategy that attracts some independent small businesses to join the many others that are the lifeblood of retail in Killarney.

William Sheahan  - Killarney Town Retail Association Chairperson 
It’s very worrying that one in three retail businesses in our town centre are not profitable or close to breaking even, especially when almost 90% of these businesses are trading for over 10 years. What makes Killarney unique is its shops with long histories and more importantly the people that work in them. There is no question that certain streets and areas are under pressure due to lack of footfall. No business should be put out of business because of rates or lack of parking. Killarney retailers want to see visible support from Kerry County Council Management and Government to get through these times.

Kerry County Council Statement 
Kerry County Council continues to work with all stakeholders and local businesses to foster a strong commercial and retail environment in Killarney. Kerry County Council has delivered a broad suite of supports to local businesses in the past number of years based on national policy and grant schemes, such as rate waiver schemes, the Restart Scheme, the Small Business Assistance Scheme, and business continuity supports. The Local Enterprise Office also provides a range of supports to small and medium businesses. The Increased Cost of Business Grant (ICOB) was also announced as part of Budget 2024 and will be targeted at small and medium-sized businesses which operate from a rateable premises. This scheme will be a once-off grant aid provision, and the final details of the scheme are currently being developed. Also, as part of the development of the Local Economic and Community Plan (LECP), there will be scope to work with the Kerry Economic Stakeholder Forum to conduct further analysis through Local Chamber Alliances and to develop appropriate policies responses to the challenges faced by local businesses through the Economic, Enterprise and Community SPC.

For more reaction don't forget to pick up this weeks Killarney Advertiser.