Opportunity Knocks

Alan McGrath
National Organiser, Health Stores Ireland

I’ve had an unusually high number of cold calls to the office from people considering opening a health food store.

By default, I immediately press the optimistic button, smile while I’m speaking and give nothing but encouragement to the potential fledglings. These last few calls left me reviewing my performance as I read through my notes, and I found an even more optimistic message content and tone than usual.

Why is this? My jottings indicate that now may be the best time in decades to enter the retail market. “Ireland is full” could have been the blunt but incorrect answer in the past from a misguided perception that every town and village in Ireland that could support a shop already does.

Firstly, this is simply not the case, as gentle probing of my enquiring callers has clarified. Secondly, there are many opportunities for people seeking to enter this sector to acquire established businesses.

There is an “Invest” link on our website for a reason. Behind the published “going concerns” for sale are more who await the successful conclusion to the merry dance that I, or another, must have with a potential buyer and a probable seller. I’m not the best merry dancer, but I’m always available for a clumsy attempt.

My notes also highlight the fact that the multiplatform marketplace that has been disrupting and impacting established bricks-and-mortar retail over the last five years, while continuing to do so, is much better understood and retailers have become more adaptable. A new retailer entering the market will have the benefit of a better understanding of these challenges from Day One.

A short, sharp pre-election campaign from the SME Alliance and some impactful lobbying groundwork seems to have resulted in a government and a Business Minister who is more conscious of the wave of challenges that the previous government was inflicting. It was becoming close to impossible to run a small business in Ireland, and the benefit of a government change, while in reality just a shuffling of the deckchairs, has allowed the new minister to roll back many of the social responsibilities that were shifting from the government to SMEs.

One of the most encouraging insights I can give prospective newbies is the fact that all historical constructs of what previously defined a health food store have been gradually eroded. New entrants to the health food market have a complete blank canvas. The bit in the rule book that describes a bona fide health food store has been deleted.

In fact, the rule book has been thrown out the window and the only criteria for new shops are “mould it with your own personality” – always a ticket for success – and “focus on trusted brands and suppliers” – a key to customer safety and business longevity. The business landscape is improving. The model options for new stores are wide and exciting. The challenges are more clearly defined and the solutions more accessible. The support structure and network have never been better.

Health Stores Ireland is the professional trade association representing more than 110 independent health stores in Ireland. Visit irishhealthstores.com, Facebook @HealthStoresIreland