Wholesale & Retail Trade

R&D is not an activity commonly associated with the retail sector in Ireland… But repeated global supply chain disruptions coupled with a rapid growth in e-commerce capabilities events have conspired to make testing grounds of warehouses and stores across Ireland.

Suddenly, solving complex logistics problems and finding new ways to benefit from plentiful data have become a priority for retailers and wholesalers. Those with the skill and will to take advantage of innovation in retail find themselves in a very favourable position compared to their competitors who have stayed in their more traditional lane.

Fintech and e-commerce organisations may partner with retailers to develop supply chain mathematics.

What R&D looks like in wholesale and retail

Research in wholesale and retail focuses on finessing logistics, reducing waste, managing an unpredictable supply chain and taking advantage of big data.

Dublin is a centre for retail technology R&D and innovation. Most of the household name retail giants, such as Tesco, Lidl and Supervalu, have innovation hubs in Dublin and they will test new technology before rolling it out in stores across Europe.

Some examples of R&D areas that retailers and wholesalers might explore include:

• autonomous supply chain
• smart check-out and improvements to POS systems
• hyper-personalisation engines
• frictionless shopping
• smart packaging
• optimising last-mile routes
• inventory management
• warehouse automation

Wholesale and retail R&D activities that are eligible for the research tax credit

In their efforts to manage a global supply chain and manage unpredictability while shifting to green wholesale, retailers have been exploring a range of different solutions. The Irish Government is keen to support them. Some examples of R&D by retailers that might be eligible for the tax credit include:

• creating an algorithm to predict demand for groceries based on weather that automatically activates warehouse or stock room activity
• training AIs to accurately distinguish different varieties of fresh produce without a barcode
• integrating a large number of incompatible legacy systems into a new hub
• developing a form of packaging that shows if the contents has suffered a temperature fluctuation in transit
• developing logistics software that reduces delivery van emissions

Costs that wholesalers include in their R&D tax credit application

Typical eligible R&D costs for companies in the wholesale and retail sector include:

• plant and machinery
• emoluments of employees carrying on qualifying activities
• other qualifying costs

Most costs associated with investigating a technological uncertainty are likely to be eligible for the R&D tax credit. The project does not have to be successful. NX Advisory can help you to identify and qualify wholesale research activities within your business.

How NX Advisory helps wholesalers and retailers with the R&D tax credit application

We are always pleased to hear from retailers and wholesalers looking to benefit from the R&D tax credit.

We can help you decide whether your retail research qualifies for the R&D tax credit. Through our efficient, expert-led process we provide retail and wholesale companies with a cost-effective way to claim this benefit from the Irish Government.

We will support you in gathering the data you need to fill in your application, and the documentation required to support it. We can also help you put in place systems that will make future applications quicker and easier.