Business Reaction to Covid-19

money

We have witnessed the impact of Covid-19 on businesses in Ireland since mid-March 2020. It has had a particularly devastating effect in the retail and hospitality sectors.

The Government introduced reliefs at an early stage of the pandemic.  In particular, the TWSS scheme has been a success by delivering assistance directly to affected businesses.  The July 2020 Jobs Stimulus announced on 23 July 2020 has extended the TWSS scheme to April 2021 which will continue to support the businesses most in need.

Other positive measures introduced in the July 2020 Jobs Stimulus includes, debt warehousing for Revenue debts and the extension of the “Covid-19 Re-Start” grant.  It was widely anticipated that the Vat rate for hospitality would have been reduced from 13.5% to 9% to give a direct impetus to hospitality. Even though the Vat rate was not reduced the option to do so remains open to Government.

With challenges come opportunities.

We have seen many of our clients adapt their businesses as follows:

  • Changing how they deliver their product or service to market – clothing retailers have experienced expansion in online activity and sales
  • Adapting their product offering to meet new demands during lockdown e.g. restaurants selling and delivering “cook at home meal packs”, deliveries to cocooners and the local area
  • Identifying and filling gaps in markets – off-licences and grocery retailers stepped into the market space normally served by pubs
  • Harnessing the adaptability of their employees to efficiently work remotely

All businesses have been affected to some degree and need to continue to adapt, examining their businesses from the ground-up, seeking opportunities and improvements, reducing reliance on affected markets and investing in technology solutions to further empower staff and to retain and manage relationships with key customers and suppliers

We must continue to act responsibly to mitigate the spread of the virus.  In order to get people back into restaurants, pubs, hotels, offices, travelling for recreation/business, the end user must trust the provider.  When we achieve the necessary trust levels in a safe manner, we should see some of the “old normal”.

We continue to work with our clients to meet this challenge and to harvest the opportunities.  We wish you all well.

WHAT QUESTIONS DO YOU HAVE?

We are happy to help. Please contact us on 01 677 9000 or send us an email to info@cooneycarey.ie, we would be delighted to assist you.

To keep in touch, connect with us on LinkedIn.

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    Posted on July 30, 2020 by Cooney Carey