A Study of Retail Accessibility

for Older People

The Elderly Poor and their Access to Grocery and Financial Services in Dublin

F.M. Kelly and A.J. Parker The Centre for Retail Studies

The Centre for Retail Studies National University of Ireland, Dublin

Centre for Retail Studies, University College Dublin, 2005. Published by The Centre for Retail Studies, University College Dublin, Belfield, Dublin 4 All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The views and opinions specifically expressed by interviewees and respondents in this report are theirs and are not necessarily those of the Centre for Retail Studies or the Combat Poverty Agency.

ACKNOWLEDGEMENTS The Centre for Retail Studies wish to express their gratitude to all those who contributed their time and support to this research, including in particular: The Combat Poverty Agency for its financial contribution and its guidance from the outset, particularly Mr

Jim Walsh, Head of Research and Policy. Mr Michael McLoughlin and the employees of Amrach Consulting who administered the field research.

Ms Grace Maguire, Assistant Community Development Officer and Manager of Services for Older

Persons, Dublin City Council. Mr Joe Behan, Liaison Officer, Dublin City Council.

Ms Tara Murphy, Rathmines Information and Community Services Centre Limited, Rathmines.

Ms Claire Gooder, Researcher with the Centre for Retail Studies, University College Dublin and Ms Kelly

Webster. Mr Stephen Hannon and Ms Stephanie Halpin, Geography Department, University College Dublin, for

their technical expertise. The respondents without whom this research would not have been possible.

Companies in the grocery and financial services industries who freely gave of their time and opinions.

PREFACE

This project was undertaken during 2003-2004 and is designed as a pilot survey to give an insight into the difficulties and issues faced by the elderly in accessing basic retail services. It is anticipated that the findings will contribute to further research in the area, influencing policy decisions and therefore providing a more inclusive society for those that are most disadvantaged, such as the elderly poor. This research was partially funded by the Combat Poverty Agency under the Combat Poverty Research Initiative 2002, aimed at fostering poverty research in Ireland amongst research bodies and academics in third level institutions. The study covered the theme of spatial and community dimensions of poverty and spatial access to retail and financial resources. The Centre for Retail Studies, University College Dublin, is an internationally-renowned research centre which has undertaken a wide variety of policy-orientated national and international research projects since it was founded in 1987. Amrach Consulting, a leading research organisation, were sub-contracted to undertake the survey elements of the project, namely the focus groups and questionnaire surveys.

TABLE OF CONTENTS List of Figures viii List of Tables ix Executive Summary 1 Part One Overview 8

Section 1.1 Introduction 8

1.1.1 Introduction 8 1.1.2 Background 8 1.1.3 Research Focus 10 1.1.4 Defining the Study Parameters 10

Section 1.2 Methodology 13

1.2.1 Literature Review 14 1.2.2 Agency Interviews 14 1.2.3 Focus Groups and Questionnaire Surveys 15 1.2.4 Basket of Goods Survey 16 1.2.5 Retailer Interviews 16

Part Two Literature Review 17

Section 2.1 Introduction 17

2.1.1 Poverty Amongst the Elderly 18 2.1.2 Where are the Elderly Poor? 18 2.1.3 Problems Faced by the Elderly 19

Section 2.2 Grocery Services 21

2.2.1 Changing Grocery Environment 21 2.2.2 Food Deserts 22 2.2.3 The Elderly Grocery Shopper 24 2.2.4 Grocery Policies 26

Section 2.3 Financial Services 30

2.3.1 Changing Financial Services Environment 30 2.3.2 The Unbanked 31 2.3.3 Financial Services Policies 33

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Part Three Agency Interviews 36

Section 3.1 Overview of Agency Interviews 36

3.1.1 Introduction 36 3.1.2 Where are the Elderly Poor in Urban Dublin? 36

Section 3.2 Grocery Services 37

3.2.1 Factors Influencing the Grocery Shopping Habits of the Elderly Poor 37 3.2.2 Problems the Elderly Poor have in Accessing Grocery Services 38 3.2.3 Causes of Access Problems to Grocery Services 40 3.2.4 Impact these Problems have on the Lives of the Elderly Poor 41 3.2.5 Potential Solutions 42

Section 3.3 Financial Services 45

3.3.1 Financial Service Preferences of the Elderly Poor 45 3.3.2 Problems the Elderly Poor have in Accessing Financial Services 46 3.3.3 Causes of Access Problems to Financial Services 48 3.3.4 Impact these Problems have on the Lives of the Elderly Poor 49 3.3.5 Potential Solutions 50

Section 3.4 Review 53

3.4.1 Final Commentary 53

Part Four Focus Groups and Questionnaire Surveys 54

Section 4.1 Overview of Field Research 54

4.1.1 Introduction 54

Section 4.2 Focus Groups 65

4.2.1 Life in General for the Elderly Poor 65 4.2.2 Accessing Grocery Services Focus Groups 66 4.2.3 Changes in the Grocery Services Environment 66 4.2.4 Suggested Solutions to Grocery Access Problems 68 4.2.5 Financial Service Preferences of the Elderly Poor 69 4.2.6 Suggested Solutions to Financial Services Access Problems 71

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Section 4.3 Questionnaire Surveys 72

4.3.1 General Profile of Respondents 72 4.3.2 Accessing Grocery Services Survey Results 72 4.3.3 Accessing Financial Services Survey Results 81

Section 4.4 Review 87

4.4.1 Final Commentary 87

Part Five Basket of Goods Survey 88

Section 5.1 Basket of Goods: Survey Overview 88

5.1.1 Introduction 88 5.1.2 Grocery Items Surveyed 89

Section 5.2 Price Survey: Rathmines and Arbour Hill 90

5.2.1 Rathmines Study Area 90 5.2.2 Arbour Hill Study Area 92 5.2.3 Comparison of Study Areas 94

Section 5.3 Review 96

5.3.1 Final Commentary 96

Part Six Retailer Interviews 97

Section 6.1 Overview of Retailer Interviews 97

6.1.1 Grocery Retailers 97 6.1.2 Financial Service Providers 97

Section 6.2 Grocery Retailer Interviews 98

6.2.1 Introduction 98 6.2.2 Access Problems of the Elderly Poor as Identified by Grocery Retailers 98 6.2.3 Causes of Access Problems Identified by Grocery Retailers 100 6.2.4 Policies of Grocery Retailers Which Alleviate Problems 101

Section 6.3 Financial Service Providers 106

6.3.1 Introduction 106

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6.3.2 Access Problems of the Elderly Poor as Identified by Financial Service Providers 106

6.3.3 Policies of Financial Service Providers Which Alleviate Problems 107

Section 6.4 Review 111

6.4.1 Final Commentary on Grocery Retailer Interviews 111 6.4.2 Final Commentary on Financial Service Provider Interviews 112

Part Seven Conclusion 113

Section 7.1 Commentary 113

7.1.1 Commentary 113

Section 7.2 Summary of Grocery Research 114

7.2.1 Difficulties Encountered Grocery Services 114 7.2.2 Initiatives/Policies to Alleviate Difficulties Grocery Services 116

Section 7.3 Summary of Financial Research 120

7.3.1 Difficulties Encountered Financial Services 120 7.3.2 Initiatives/Policies to Alleviate Difficulties Financial Services 121

Section 7.4 Conclusion and Recommendations 124

7.4.1 Conclusion 124 7.4.2 Recommendations 125

References 128 Additional Literature 132 Appendices 135

Appendix 4.1 Administration Details: Focus Group and Questionnaire Research

Appendix 4.2 Survey Questionnaire

Appendix 4.3 Questionnaire Research: Respondent Details

Appendix 5.1 Administration Details: Basket of Goods Survey

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LIST OF FIGURES

Photographs of grocery and financial services are contained in Part Four of the report. Page Figure 1.1 Rathmines and Arbour Hill Study Areas 12 Figure 1.2 Research Methodology 13 Figure 2.1 The Marginalisation of the Elderly Poor 17 Figure 4.1 Rathmines Study Area: Grocery and Food Stores 55 Figure 4.2 Arbour Hill Study Area: Grocery and Food Stores 58 Figure 4.3 Rathmines Study Area: Financial Institutions 61 Figure 4.4 Arbour Hill Study Area: Financial Institutions 63 Figure 5.1 Rathmines Study Area: Percentage Price Differences Between Multiples & Local Shops 91 Figure 5.2 Arbour Hill Study Area: Percentage Price Differences Between Multiples & Local Shops 93 Figure 5.3 Rathmines vs. Arbour Hill: Percentage Price Differences Between Multiples & Local Shops 95

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LIST OF TABLES Page Table 2.1 Problems for Elderly Consumers of Grocery and Financial Services 19 Table 2.2 Factors Influencing the Elderly Consumers Shopping Experience 24 Table 4.1 Large Supermarkets Accessible in Area 72 Table 4.2 Supermarket Where Majority of Normal Grocery Shopping Conducted 73 Table 4.3 General Reasons for Shopping at Chosen Supermarkets 73 Table 4.4 How Often is Main Household Shop Undertaken 74 Table 4.5 Main Transport Used To/From Supermarket 75 Table 4.6 Availability of Delivery Service from Supermarket 75 Table 4.7 Which Shops Are Used For Daily Or Frequent Purchases 76 Table 4.8 Why Do You Use These Shops For Daily Or Frequent Purchases 76 Table 4.9 Biggest Difficulty in Getting to Grocery Shops in the Area 77 Table 4.10 All Difficulties in Getting to Grocery Shops in the Area 78 Table 4.11 Main Difficulties Encountered Within the Shops 78 Table 4.12 All Difficulties Encountered Within the Shops 79 Table 4.13 General Improvements That Grocery Stores Could Undertake To Make Shopping Easier 79 Table 4.14 Methods of Payment Normally Used to Pay Bills 81 Table 4.15 Financial Facilities Used 81 Table 4.16 Reasons for Using A Particular Post Office 82 Table 4.17 Problems in Getting to Post Office 82 Table 4.18 Problems Using Services at Post Office 82 Table 4.19 Problems in Getting to Bank Branch 83 Table 4.20 Problems Using Services at Bank Branch 83 Table 4.21 Problems in Getting to Credit Union 84 Table 4.22 Problems Using Services at Credit Union 84 Table 4.23 Problems in Getting to ATM 84 Table 4.24 Problems Using the ATM 84 Table 4.25 Problems in Getting to Building Society 85 Table 4.26 Problems Using Services at Building Society 85 Table 4.27 General Improvements that Financial Institutions could Undertake to Make Using

their Facilities Easier 85

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Table 5.1 Basket of Goods Price Survey Rathmines 90 Table 5.2 Basket of Goods Price Survey - Arbour Hill 92 Table 5.3 Rathmines and Arbour Hill: Basket of Goods Average Price Comparisons between

Multiples and Local Shops 94

Table 7.1 Summary of Difficulties Encountered by Elderly Poor when Grocery Shopping 114 Table 7.2 Summary of Current or Suggested Initiatives/Policies to Alleviate Difficulties 116 Table 7.3 Summary of Difficulties Encountered by Elderly Poor Using Financial Services 120 Table 7.4 Summary of Current or Suggested Initiatives/Policies to Alleviate Difficulties 122

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EXECUTIVE SUMMARY There have been many changes in the retail sector over the past number of years including consolidation, new technologies, additional formats and changes in service delivery. This research was conducted to examine the issues affecting the elderly poor in todays retail environment in accessing basic retail facilities, namely grocery and financial services. The study highlights the difficulties experienced by the elderly poor and points to potential solutions, including the involvement of retailers, in making life easier by improving or providing them with better access facilities in the future. Throughout the report, access relates not only to physical access, but also services within relevant retail outlets or financial institutions. During the course of the research, several methods of investigation were undertaken. These involved literature review, interviews with relevant agencies, qualitative focus groups and quantitative questionnaires with the elderly on low incomes, and interviews with grocery and financial service retailers. Furthermore, in relation to grocery services, a small-scale basket of goods survey was undertaken. At each stage of the study the problems were assessed and solutions, either current or potential, were identified. The range of difficulties experienced by the elderly poor is wide ranging. It would appear that while the elderly poor are most concerned with the immediate difficulties they experience, such as transport, carrying goods home or portion sizes, much of the reviewed literature and comments from relevant agencies or retailers also recognise more long term issues such as dietary and health problems, unnecessary dependence on others or inability to plan for the future. The following pages provide an overview of the most common issues raised in the report. Grocery Services: The problems that exist for the elderly poor in accessing grocery services are undoubtedly affected by the restrictions of living on a low income, but there are other factors which during the study were described as contributors to the situation. These include current planning legislation which permits the growth of out-of-town stores, local grocery monopolies and

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expensive convenience stores with a noticeable reduction in the number of traditional, local shops. The household structure of the elderly also impacts on their situation. While many would have a preference for traditional foods and recipes, they would often require less food and smaller portions and there would be variation in their household storage or cooking facilities. Additionally, a lack of assistance both within stores and at home can make grocery shopping more problematic, while it was also put forward that the elderly can often perceive difficulties by regarding particular shops as too high tech or not stocking the right items. A combined examination of the difficulties encountered by the elderly poor includes:

Lack of choice in where they shop Transport Deliveries/getting goods home Increased dependency on others and not having autonomy in purchases Urban environment (traffic/crossing roads) Physical disabilities e.g. sight/hearing/mobility problems which create difficulties in

queuing, reaching goods on shelves or reading labels etc. Changing grocery environment Appropriate, affordable portion sizes Range of goods available e.g. fruit & vegetables or items to accommodate dietary

requirements High prices Poor customer service and lack of appropriate assistance

The results of a small basket of goods survey conducted as part of the research programme revealed that there were large ranges within residential areas of prices charged for grocery items. The survey also indicated that the cost of a basket of goods could be at least 40 per cent more expensive in local stores compared to the local multiple. Ultimately therefore, if access to large multiple stores is restricted, the local residents are likely to pay higher prices for convenience. With the option to choose, people have the ability to get better value for money.

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As long as problematic access issues exist, it will result in the elderly, who have to survive on low incomes, getting poor value for money. The proportion of their total income being spent on food will remain high, restricting their ability to spend on other items or their ability to save and therefore plan for the future. There is also the risk of poor nutrition amongst the elderly who do not have proper access to good quality, affordable shopping facilities, in due course affecting their health and potentially in the long term, making them less independent. Lack of independence also becomes an issue when the elderly do not have a choice in where they shop, particularly if someone else must do their shopping when the stores are some distance away. In such circumstances there is not the option to shop around, as is available to other consumers, in an effort to obtain the best value or best quality goods. In addition, a poor network of shopping facilities can amplify the isolation which many people feel in old age, as the older person does not have the opportunity to socialise with others when they do their regular shopping. During the course of this research programme, a range of solutions both existing and potential were discussed in an effort to highlight the possibilities available in alleviating access problems experienced by the elderly poor. An overview of these include:

Opening smaller stores in local areas charging supermarket prices Transport initiatives private bus services, new Dublin Bus stops closer to large

stores, seats at bus stops Delivery services improved options, shopping services, group internet ordering,

reduced off-peak delivery charges Facilitate the introduction of mobile grocery shops Increased supply of local fresh fruit and vegetables through innovative initiatives Nutritional education in the form of Cook and Taste sessions for the elderly Technology education covering the use of scanners or internet shopping Improve retailer awareness/localised service adjustments by retailers Increase public awareness of the issues/instigate local awareness campaigns

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Government initiatives Vat removal on certain items, levies on out-of-town retail, special food taxes, relocation of surplus stock to elderly housing units, incentives for more fresh goods in local shops

Promote local co-operatives and farmers markets Retail forums to examine requirements at local level Improved in-store facilities shorter queues, seating, easier access, better trolleys,

wider aisles, improved labelling, larger print for prices, better signage, improved opening hours, availability of appropriate portion sizes

In-store ATMs or sub-post offices in-house to make cash transactions more secure Special promotion days for the elderly/lower prices to match food discounters Saving stamp schemes/store loyalty cards

The solutions put forward range from the simple, to the ambitious, to the more abstract, but further debate and evaluation is required before policy decisions are implemented. Financial Services: Access to financial services differs to grocery facilities in that most financial services are not as essential to day-to-day living it would be feasible for someone to live without financial services but not so without food. Despite this however, living in todays society without using some form of financial facility from time to time, whether it be a post office or bank, would be almost impossible. A significant factor contributing to access problems is the change in service networks, that is, the closure and consolidation of many branches of financial institutions, leaving the elderly poor with limited choice in where they can perform even simple transactions. Despite the fact that internet and telephone banking are favoured by many in society, these are generally not options for the elderly, particularly those on low incomes who are unfamiliar with new technology and have sight and hearing disabilities. From the research it was clear that the vast majority of the elderly poor in Ireland used post offices on a regular basis. Income inadequacy forces them to live from week-to-week, excluding them from the opportunity or need for long-term savings or investments. It was also

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evident that the attitude to debt of many elderly people living on low-incomes differs greatly to the population at large, and as such, they make great efforts to live within their means. As with grocery facilities, access to and usage patterns of financial services is greatly influenced by income restrictions. Current beneficial policies in the form of Special Savings Incentive Accounts or mortgage relief for instance, benefit the wealthy, but are of little use to the poor in society. Similarly, long-term investments provide greatest yields but for those who do not have spare finance, such products are largely irrelevant. Other issues restrict or affect access to financial services for the elderly poor, including personal circumstances. A persons socio-economic background and a family history of being unbanked would stop them becoming involved in later years as a pensioner. The perception that the bureaucracy involved in utilising many financial services is too complicated and, following several negative media reports on the banking industry, lack of trust and a desire for privacy would also discourage the elderly in accessing many of the services on offer by financial institutions. In terms of some of the specific access problems that manifest themselves, the elderly poor would have difficulties with:

Distance to the nearest location of financial institution Urban environment (traffic/crossing roads) Personal circumstances disabilities, illness, reliance on family to assist in financial

affairs, death of spouse Money management managing monthly/bi-monthly bills on weekly income while the

household budgeting service is not available for pensions Services available in financial services queues, no seating, amount of paperwork,

perception of not being wanted, standard procedures no longer routine, penalised for over counter transactions, tax on bank cards, opening hours

Increased use of technology and the future possibility of pensions being paid through Electronic Funds Transfer

Poor customer service/lack of patience of staff and other customers Age issues insurance difficulties as the elderly are regarded as high risk, lack of

return on short-term investment and credit is generally only available for the short term Lack of financial history or experience/lack of trust in banks

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The result of not having adequate access to the financial services that others in society take for granted can affect many elderly people on low incomes in different ways. If they must rely on others, they lose their independence and in some cases their dignity by feeling they are not as capable. They also have less choice and therefore pay accordingly, with no opportunity for comparison or no awareness of the alternatives that may be available elsewhere. It is difficult to plan ahead or to put money aside for the future and difficulties in obtaining insurance, for instance travel insurance for group outings, can make them more vulnerable and isolate them even more. Despite the security issue involved in handling cash on a regular basis and keeping it at home, the elderly often have no choice and could even be penalised by the government by placing their money in banks in the form of a tax on bank cards. In a similar manner to the research conducted into grocery services, solutions were suggested both existing and potential to generate a variety of ideas for combating the access issues to financial services for the elderly on low incomes. Amongst these are suggestions to:

Improve basic services at reasonable cost for those on low incomes Improve technical and financial literacy to remove scepticism/reluctance to use

services Increase alternative locations mobile internet facilities, computer sponsorship in

elderly communities, joint ventures such as the AIB and An Post arrangement Instigate Government initiatives e.g. exemption from tax on bank cards Introduce service improvements improve opening hours, access times, assistance for

bill payment management, increase staff available and time available, special staff, large print documents, provide magnifying glasses, more seats, lower ATMs for wheelchair users, ATM earphone facility, more In-store ATMs for security, shorten queues, reduce charges

Improve trust of banking industry Promote community banking initiatives/social fund for low income earners

A thorough evaluation of the propositions needs to be conducted in order that the best and most effective solutions can be implemented by the most appropriate bodies. Final Commentary: While not all elderly persons on low income have difficulty in accessing either grocery or financial services, for those who do, their ability to perform everyday tasks considered the norm in society can be severely restricted.

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There are many ways in which assistance can be given but in order to be as effective as possible, policies should aim to be preventative rather than curative, enhancing the capabilities of the elderly poor in managing the changing retail environment. Good communication is also a key element in any initiative, in order to let people know what is available. Developing initiatives and providing facilities to cater for the elderly who live on low incomes is of critical importance, particularly for the government. As the population ages, there will be substantial numbers relying on state pensions or surviving on reduced means, and the need to assist the elderly in remaining as independent as possible cannot be overemphasised. Likewise, all businesses need to be aware of this growing segment in the market, which could have a substantial impact on their business in the future as todays multitude of younger customers become the pensioners of tomorrow.

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PART ONE: Overview

Section 1.1 Introduction 1.1.1 Introduction As a result of inadequate income and resources people may be excluded and marginalized

from participating in activities which are considered the norm for other people in society (The Department of the Taoiseach, 2002)

In order to build a socially inclusive society, policies to support disadvantaged groups who are vulnerable to poverty, such as the elderly, must be implemented. Poverty can be measured not only by a persons income, but also by their access to certain necessities. Being without these necessities, which include lifestyle items and consumption indicators (National Council on Ageing and Older People, 2001a), indicates a certain level of deprivation. The aim of this research therefore is to examine issues affecting the elderly poor and their access to the basic retail resources which constitute an essential part of their daily lives - grocery and financial services - resources that other people in society take for granted.

1.1.2 Background

In Ireland, as the proportion of people in consistent poverty falls, there remain major sub-groups within the population who are more exposed than others, with each sub-group being vulnerable in different ways. The elderly are among the most heavily polarised of groups. As well as having some of the wealthiest people in their ranks the old have some of the poorest

also (Poole and Parker, 1990). The aged are also becoming more numerous. It is estimated

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that more than one in ten people living in the Republic of Ireland is aged 65 years or more. Projections indicate that this proportion will increase to almost two in every ten by 2031 (Fahey, 2002). Also significant is the increased life expectancy for both males and females, which in turn means service providers, will be accommodating the needs of the elderly for a longer period (Food Safety Authority of Ireland, 2000). The elderly poor are largely reliant on social welfare payments. For this quite numerous group, the efficiency with which they can access and manage their financial resources and the accessibility issue in satisfying their day-to-day needs are critical in defining their quality of life and social inclusiveness. As Poole and Parker (1990) noted, for example, many elderly people are largely dependent upon public transport. Their access to day-to-day retail facilities are heavily dependent upon either being able to walk or take public transport to such places. Yet increasingly, the access issue is becoming more difficult, both because of declining public transport provision, and because of the changing nature of the retail economy. The development of a more global economy has meant all business sectors, including retailing, have seen consolidation and change at many levels. Hence, in order to compete, many retailers have rationalised their operations resulting in the closure of smaller, local, non-economic retail units and their concentration in larger but more dispersed new shopping centres. The retail industry, including financial services, have also explored other ways of delivering their product to the market, most notably by the adoption of new technologies. As an example of these processes the ESB closed 27 of their 81 nationwide stores, which seriously restricts the ways people can pay their bills. Furthermore, banks have reduced the number of branches and encourage telephone or internet banking as an alternative. Sub-post offices are also under threat of possible closure. Such strategies have marginalized many in society, including particularly older people, who do not have the technological facilities or ability to access newly developed forms of retail services (Dunn and Morgan, 2001). New delivery channels, widely promoted by both private companies and government, are not yet a solution for the elderly poor, so the retail industry justification for branch closures does not apply to this sub-group of the population. Research data from Amrach Consulting reveals that just 9% of the over-65s regularly access the Internet, compared to 43% of the population as a whole, and for the poor the proportion is likely to be even lower (Amrach Consulting, 2004).

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1.1.3 Research Focus A priority for policy research will be the special needs of growing numbers of older people

living alone (Office for Social Inclusion, 2003) It is in this context that this research focuses on the vulnerability of older people in their access to retail and financial services. The purpose is to identify the scope and magnitude of the main issues involved for the older poor, and examine the extent to which corporate policies are potentially amplifying the problem, and could possibly be overcome. The primary research objective of this study is to investigate how deprived older people on low incomes are, in terms of their access to basic retail services, including grocery and financial services, elements which are fundamental to their well-being and which others in society can access quite easily. The relative ease, or otherwise, with which the elderly poor can travel to such facilities is essential to an independent life. By not having access, or where access is very difficult, their levels of social participation are reduced. It is anticipated that this study will contribute to the development of implementable policies to improve the social inclusion of the elderly.

1.1.4 Defining the Study Parameters

The main population focus is the elderly poor in Dublin. While many research projects involving the elderly poor have focussed on the provision of, or access to, public services, this project concentrates on the private service dimension - that of grocery and financial services. It is anticipated that further research into other population groups such as the younger poor, those living in rural areas and access to other retail services such as pharmacy or clothing, be conducted at a later stage.

Defining the Elderly Poor:

In recent years, the Irish economy has seen enormous growth but improvements have generally been for the better off. According to the most recent Household Budget Survey

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(Central Statistics Office, 2000), almost 40 per cent of pensioners live in households which have the lowest incomes in the country (i.e. among the two lowest income deciles). Approximately 70 per cent of their gross income comes from state pensions and/or other long-term social welfare payments. Consequently, for the purposes of this study, the elderly poor have been defined in monetary terms as those whose income from state pensions and other long-term social welfare benefits represents the majority of their total income. They are also those who live relatively independently, i.e. not in residential care, and those who do not receive daily meals through day care centres or from meals-on-wheels services.

Defining the Study Locations:

It is evident that poverty and deprivation affects every area within the country (Combat Poverty Agency, 1999), yet due to time and budgetary constraints this project has been limited to urban Dublin. As a preliminary study, this area is appropriate given that according to the National Council On Ageing And Older People (2001b), the Eastern Regional Health Authority will see the greatest increase in older population over the coming years. Spatially however, the elderly poor do not always live in specific geographic areas. While Dublins inner city may have more concentrated pockets, in peripheral areas such as Darndale or Ballymun the location of elderly poor would be more dispersed. Therefore, in consultation with the Combat Poverty Agency, it was decided to choose two areas specifically recommended by agencies having expert knowledge of the geography of Dublin and the location of the elderly living on low incomes. Such locations were determined during the agency interview stage of the research as being Arbour Hill in the north inner city area of Dublin 7 and Rathmines in the older southside suburban area of Dublin 6 (Figure 1.1). These areas were selected because they not only have an appropriate mix of elderly residents on relatively low incomes but also possess a suitable range of grocery and financial services in the locality, thereby enabling significant research to be conducted.

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Figure 1.1: Rathmines and Arbour Hill Study Areas

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Section 1.2 Methodology

This section details the methods used in conducting the research. The form of the research incorporating access to both grocery and financial services involved a literature review, interviews with relevant agencies, qualitative focus groups and quantitative questionnaire surveys with the elderly poor. Furthermore, in relation to grocery services, a small-scale basket of goods survey was undertaken to provide some indication of price variations in the market. Finally, interviews with both grocery and financial service providers were incorporated into the research programme to ascertain retailers attitudes towards elderly customers on low incomes; to understand the issues they have in servicing this section of the population, and to highlight possible areas for improvement (Figure 1.2).

Grocery Services Financial Services

Literature Review

Agency Interviews

Consumer Focus Groups and Questionnaire Surveys

Basket of Goods Survey

Grocery Retailer Interviews Financial Institution Interviews

Summary and Conclusions

Figure 1.2: Research Methodology

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1.2.1 Literature Review

An assessment of the literature was undertaken to investigate the information currently available on the elderly and social exclusion in terms of their access to both grocery and financial services. Due to the lack of relevant data on the topic in Ireland many articles relate to observations and research conducted abroad, in particular the United Kingdom and the USA. A range of overseas retail research organisations, similar to The Centre for Retail Studies, were also contacted to establish whether any identical studies had been undertaken elsewhere. While this transpired not to be the case, the contacts yielded some additional references. Key findings of the literature review are presented in Part Two and a list of references is provided at the end of the report. The material gathered in the Literature Review was used in the formation of topic guides and areas of investigation in subsequent sections of the research programme. 1.2.2 Agency Interviews Information was gathered through interviews with key personnel in relevant organisations. Such organisations were identified in conjunction with the Combat Poverty Agency and through personal contact, as a result of which, thirteen representatives were interviewed in either face-to-face or telephone discussions. These included individuals from:

Age Action Ireland Department of Social and Family Affairs Dublin City Council Eastern Regional Health Authority Irish League of Credit Unions Money Advice and Budgeting Service (MABS) National Council on Ageing and Older People Office of Consumer Affairs Older Womens Network St. Vincent de Paul Vincentian Partnership for Social Justice Womens Education, Research and Resource Centre (WERRC), UCD

Interviews centred on the main issues identified by the literature review, in order to provide an analysis of experience in Ireland. These issues included:

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What are the problems encountered by the elderly poor in accessing grocery and

financial services in urban Dublin? What contributes to these problems? How do these problems affect the lives of the elderly poor? In terms of policies or initiatives, what solutions are available or could be implemented

to alleviate the problems for the elderly poor?

1.2.3 Focus Groups and Questionnaire Surveys In response to the literature review and interviews with relevant agencies, two focus groups were undertaken with the elderly poor. These groups, which were selected through purposive sampling, explored the usage, experiences and opinions of the elderly poor, highlighting issues and difficulties they came across when accessing grocery and financial services in Dublin. Subsequently, questionnaire surveys were conducted in the same areas to quantify the issues involved. The sampling strategy used for the questionnaires was quota sampling. This element of the research programme was an essential part of the research process, drawing directly from the experiences of the older population who survive on low incomes in urban Dublin. Ultimately, the information gathered here on actual behavioural patterns provides details on issues faced on a day-to-day level by the elderly poor, highlighting the barriers that need to be overcome to assist them in leading more independent lives. The data also forms the basis for further investigations in the future. Specific details on the focus groups and questionnaires are listed in Appendix 4.1 and a copy of the questionnaire is contained in Appendix 4.2. The fieldwork element of both the qualitative and quantitative research was conducted by Amrach Consulting, a leading research organisation.

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1.2.4 Basket of Goods Survey As part of the study into access to grocery services, a limited-scale grocery price survey was designed and implemented by the Centre for Retail Studies researchers to compare the prices charged in the different stores in each locality. The intention was to survey a range of different types of grocery outlet in each area: corporate chain (multiple) supermarkets, contractual chain (group) retailers and independent food stores. Field surveys by CRS researchers in both study areas had identified all the grocery outlets and from these, all multiple supermarkets in both areas were included together with a representative selection of contractual chain and independent retailers. These latter were selected on the basis of a geographical spread throughout the two study areas, as well as including the larger outlets to ensure that the majority of items in the basket of goods would be available.

1.2.5 Retailer Interviews Towards the final stages of the research programme, in-depth interviews with organisations operating in both the grocery and financial services sectors were conducted. As part of this preliminary study, two organisations in each sector were contacted; a large multiple and a symbol group; a bank and a credit union. Utilising data from the ongoing study, the interviews were structured on two levels, the first being the organisations perception of the barriers faced by the elderly poor in accessing their grocery or financial services, and the second investigating the difficulties encountered by the retailer in providing facilities for the elderly poor. While the main aim of this phase of the investigation was to highlight attitudes and policies of retailers on access issues, an equally important element was instigating the involvement and inclusion of retail service providers in the research process. By developing an awareness of the issues involved for both parties and by fostering future interaction it is hoped that potential resolutions could be implemented to the benefit of all involved.

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PART TWO: Literature Review

Section 2.1 Introduction As the National Council On Ageing And Older People (2001a) state, lower income can contribute to social isolation for the elderly. The situation of the elderly poor is further compounded if their access to simple, affordable retail services is restricted or not available and if they find themselves unable to perform activities considered the norm in society. Such limitations may leave them socially excluded and ultimately, further marginalized from society, as Figure 2.1 illustrates.

THE ELDERLY POOR LOCATION / ACCESSIBILITY MARGINALISATION Financial Poverty + Poor Access to Retail Services = Greater Risk of Social Exclusion i.e. low disposal income i.e. grocery and financial

Figure 2.1: The Marginalisation of the Elderly Poor According to the Department of the Taoiseach (2002) the Irish government is committed to supporting older people to live independent and fulfilling lives but beyond income distribution, new resources and organisational structures should be in place to provide capability enhancement for the elderly, improving autonomy and giving them real choice (Cantillon et al, 2001). It is important therefore to recognise where the difficulties lie before real and sustainable policy decisions to improve access to retail services for the elderly poor can be made. While not all articles in the following literature review relate specifically to the elderly living on low incomes, there are elements which are nonetheless applicable to the research and have therefore been introduced to encourage a more complete understanding of the issues involved.

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2.1.1 Poverty Amongst the Elderly In their study Layte et al (1999) examined poverty and deprivation amongst the older Irish population to identify those most at risk. While their research indicates that elderly Irish people are less likely to live alone than in most other OECD countries, strong patterns of change are emerging in the state. Due to continual migration within Ireland to urban areas and high levels of emigration in the past, families have been widely dispersed and the elderly are less likely to have the hands-on assistance of family members that was once so traditional. The Census of Population 2002 indicates that there are 436,001 people aged 65 and over currently living in Ireland. The percentage of these persons aged 65 and over in single households is 29 per cent, increasing by 5 per cent in just over a decade. As has been previously noted in Section 1.1.4 the Household Budget Survey (2000) reveals a high proportion of pensioners are among the poorest in our society and despite the fact that the income status and non-cash benefits (e.g. free phone and travel) of the elderly poor have increased in the last quarter of a century, they are still faced with increased costs due to illness and reduced economies of scale because of their family situation (National Council On Ageing and Older People, 2001a). They also tend to spend a higher proportion of their income on food. As Age Concern (1996) illustrated, those aged 75 and over spend 22 per cent of their total income on groceries compared with 16 per cent for those under 35. 2.1.2 Where are the Elderly Poor? Identifying the location of the elderly living on low incomes however is difficult. In using the Census information the indicators often used to identify those in poverty or those at risk of poverty, are less useful for those aged 65 and over. Tenure, for instance, in the population at large has been cited as a significant indicator of poverty (Combat Poverty Agency, 1999 and Pringle et al, 1999) with local authority residents more likely to experience poverty than those who own their own home. However, many elderly people who own their own homes, still fall into the poverty trap due, for example, to changes in their income status. Similarly for the population at large, education, social class and labour force status can be useful in determining risk of poverty. Yet as the National Council for the Elderly (now The National Council On Ageing and Older People) (1993) state, negative attitudes to ageing in society result in displacement of able older people not only from the workforce, but also from other aspects of social and economic life. Despite their previous status, those over 64 who are forced to retire may unwillingly become dependent individuals, with the potential of subsequent poverty.

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2.1.3 Problems Faced by the Elderly While all consumers face problems in shopping and using financial services (Lyon et al, 2002), the magnitude of issues for the elderly can be quite significant, for a number of reasons. Table 2.1 illustrates the problems encountered as a result of some of the difficulties they have.

Table 2.1: Problems for Elderly Consumers of Grocery and Financial Services

Difficulties Creating problems with:

Hearing Difficulties Social and face-to-face communication Telephone communication (Banking) Poor Eyesight Reading labels, especially foreign packets (Grocery) Reading and completing forms Checking prices (Grocery) Writing cheques Dealing with different denominations of bank notes Signatures for debit/credit cards Checking till receipts and lodgement slips Using ATM machine (Banking) Computer based systems with small screens Poor Mobility Walking and navigating around stores or bank branches Climbing stairs Getting in/out of taxis, cars or public transport Availability of disabled parking/facilities Standing in queues Reaching high or low shelves in stores (Grocery) Heavy doors Poor pathways, amount of green light time at crossings, lack

of dropped kerbs Transporting bulky or heavy goods from shop (Grocery) New environment Selecting goods from large choice Assessing new grocery and financial products Self service weighing etc. (Grocery) Choice of larger, cheaper packets, or smaller, higher priced

packets (Grocery) Charges for delivery services (Grocery) Peoples Attitudes People assuming the elderly cannot do things by themselves Young bank tellers/shop assistants lack of understanding Other customers impatience or intolerance Older people have less priority and they feel less valued Sources: Dunn and Morgan (2001), The Equality Authority (2002), Fogarty (1986) and Lyon et al (2002)

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Research by Lumpkin and Hite (1988) indicates that retailers place far greater emphasis on profit related services while elderly consumers need greater convenience and a more product-related focus. It is important for retailers involved in the grocery and financial services sectors however to prepare sufficiently for the impact of the growing elderly population and to be aware of their needs. In addition, the Equal Status Act 2000 states that all those providing goods and services in Ireland must reasonably accommodate those with disabilities and must ensure no one, including the aged, are discriminated against (The Equality Authority, 2002). Yet it is not only with the retailers that access problems exists. In a workshop conducted by the Older Womens Network (2003), it was commented that within their own neighbourhoods older people seemed to be irrelevant to the planners, service providers and the world of business. Urbanisation has meant the development of new outer suburban housing estates where the real focus of initiatives is on younger people. Services such a local shops, post offices and bus services in the older, more mature housing areas with a higher number of elderly residents, however, have been eroded. The following sections examine the specific sectors of grocery and financial services, illustrating the changing nature of the retail environment and the impact these changes have on the elderly poor.

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Section 2.2 Grocery Services

2.2.1 Changing Grocery Environment For those aged 65 and over, the world of retailing has changed unimaginably during their lifetime. Among such changes is the self-service phenomenon which creates less direct personal service or assistance for the older consumer than they would have been used to in the past and also the introduction of internet retailing which eliminates the need to travel to grocery outlets by having food delivered to the door. However, more profound events have occurred which have altered the entire structure of the grocery environment. Town centres for instance, are no longer exclusively for retailers. They now offer more leisure and entertainment services, leaving less room for larger grocery stores. Multiples now often exist in larger out-of-town shopping centres, including not only grocery but also clothing, hardware and electrical items in their offer, while they serve coffee or offer banking and insurance facilities (The Centre for Retail Studies, 2001). These out-of-town shopping centres and retail parks offer numerous benefits to the consumer due to economies of scale, which in turn lowers costs in areas such as maintenance, staffing and goods delivery. Consumers therefore get lower prices as well as a wider product choice, due to the availability of space and the opportunity to offer own label goods (Guy and Bennison, 2002; Kaufman, 1999). However, the location of these developments has meant the distance and time spent travelling to shops has increased significantly (Lang, 1994). In the UK, Michaels (2002) estimates the distance increased by up to 60 per cent between 1975 and 1990 with three quarters of all supermarket shoppers now travelling by car. It is evident that the advantages of these large stores are almost exclusively being offered to mobile consumers, while the more disadvantaged consumers such as the elderly poor reliant on public transport are particularly vulnerable to the effect of out-of-town developments. Ultimately, lower prices in these out-of-town stores are a result of retailers externalising transport costs, availability and access, the negative consequences of which are now incurred exclusively by the immobile consumer (Lang,

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1994), including the elderly poor. They generally cannot drive or afford a car, often have difficulty using public transport, especially for transporting goods home, they may need help navigating stores and cannot afford or store bulk-buy offers (Blanchard and Lyson, 2002; Broadbridge and Calderwood, 2002; Hare, 2002). Meanwhile on the high street, while there has been an upsurge in convenience type grocery stores the convenience store of today is not the traditional type of shop with which the older consumer would have been familiar with. Additional services and formats, both abroad and in Ireland, have been introduced to the retail arena, for example Dunnes Stores and Tesco convenience outlets and Marks and Spencers Simply Food formats. Petrol forecourts have also raised the stakes with the likes of Tesco opening their own forecourt stores and petrol stations and the traditional oil companies advancing their offer often through joint ventures with food retailers such as Mace, Londis and SPAR. As the pace of life has changed small local stores and their retail offer have been designed to be as convenient as possible to meet the needs of the cash rich, time poor consumers who are the most profitable shoppers. Unfortunately, these new convenience shops are often high class, high priced delis which have become no more accessible for those on low incomes than the out-of-town superstores (Williams, 2000).

2.2.2 Food Deserts Such dramatic developments on the retail landscape have contributed to a theory of Food Deserts. The term is said to have been introduced in the UK in the mid-1990s to describe areas with relatively poor access to an adequate, healthy diet, areas which Blanchard and Lyson (2002) claim are more numerous in inner city and rural locations. The description encompasses not only the availability of food, but also its variety, affordability and quality, the absence of which prevents local residents from making healthy food choices (Clarke et al, 2002; Cummins and Macintyre, 2002a).

Food desertification is apparently the result of a number of factors including the trend towards car-based shopping at out-of-town superstores, facilitating consumers who are wealthy enough to afford private transport but distancing disadvantaged populations such as the elderly, from low cost groceries. This ultimately leads to higher prices in smaller local shops and a reduction in their numbers. Garnett and Joffe (2001) commented on evidence that independent shops in the UK charge 60 per cent higher prices than supermarkets and that they have decreased in number by 40 per cent between 1986-1996. Their paper, together with that of Rex and Blair (2003) confirm that in certain particularly deprived areas

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demand for their localised retail services became even lower as they became more poorly stocked. This was the result of problems with supply, crime, regulations, competition and long hours, all generating a low customer turnover resulting in produce that was not fresh and of poor quality. In the UK, government departments and research agencies funded research to investigate food deserts, examining food access and food poverty in British cities. One such study by Wrigley et al (2002) researched a highly deprived area in Leeds before and after the retail offer in the area was changed with the introduction of a large supermarket. The authors suggest there is evidence that such retail provision intervention had a positive impact on the diets of households in the area, including groups most at risk. However, Cummins and Macintyre (2002b) noted that in Glasgow, big multiples were more likely to locate in or near deprived areas and that 57 food items were similar or cheaper in these locations than in more affluent areas. The study claims to illustrate an important point therefore, that shop type or format was the main predictor of price and availability, and not location. On this basis, Cummins and Macintyre (2002a) dismiss the food desert concept as a factoid, an assumption reported so often that it is considered true, based on small scale primary research which subsequently negatively affects health policies. Recent changes in food retailing in the late 1990s would seem to support this viewpoint, with the return of multiples, freezer stores and discounters to the high street and in local neighbourhoods centres. It is clear, however, that in ensuring equal access to food services for all, each local situation must be analysed on its own merits. While market share is often defined nationally from a consumer point of view, it is the number of food outlets and how local they are that matters (Lang, 1994). Clarke et al (2002) emphasise that in attempting to tackle inequalities, planners must assess each area individually. For example, a new large supermarket such as that introduced in Leeds might not suit immobile residents who would benefit more from smaller scale, more spatially dispersed stores. In essence, food deserts are subjective and in situations for instance which involve the elderly, there may be access to newer convenience type products but not the traditional items they actually know and use.

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2.2.3 The Elderly Grocery Shopper As the above section illustrates, and as Freathy (2003) confirms, the negative influence of low income, limited access and poor retail availability on food choice and the existence of a disadvantaged consumer has been well studied in the United Kingdom. It is claimed by Rex and Blair (2003) that the value of local, neighbourhood retailing is not only limited to nutrition. There are other significant benefits to which it contributes including:

Meeting peoples daily needs Creating community through spontaneous social interaction Increasing physical mobility and reducing social isolation Reducing unnecessary car usage Maintaining a healthy local economy with local money

This section examines the factors affecting grocery shopping from the older consumers perspective. Table 2.2 highlights eight areas directly influencing the shopping experiences of the elderly, drawing on the work of Lumpkin and Hite (1988) and Hare (2002).

Table 2.2: Factors Influencing the Elderly Consumers Shopping Experience Merchandise

Choice, price, quality, promotions (bulk buying or reduced price), labelling, quantities

Retail Practices Service, returns service, complaint handling, displays,

hygiene, stock management, assistance in carrying items, discounts for the elderly

Staff Assistance level, interpersonal skills or knowledgeable

assistants Store environment (Internal) Facilities, rest areas, design, convenient entrances/exits Social Aspects Interaction role Accessibility Support from people to get there, public transport, ability

to walk, ability to transport goods home External Shopping Environment Choice, availability of other shops, roads, pathways and

steps in surrounding area Personal Factors Budgeting, other customer interaction, fresh air, exercise Adapted from Hare (2002); Lumpkin and Hite (1988)

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Yet there are other factors which, from a wider perspective, influence the food purchasing and consumption patterns of the older consumer on a low income. The social welfare system often determines how much people on low incomes have to spend on grocery items, ultimately limiting their choices (Garnett and Joffe, 2001). They are constantly faced with competing demands for their money, particularly in winter months when a greater proportion of their income is required for necessities such as heating. There are also situations where, because of the current availability of shops, the possibility of future retail development in particular areas is curtailed. Guy and Bennison (2002) claim local monopolies are created by the introduction of planning laws after certain retailers have established themselves, therefore decreasing the possibility of further competition in the future and limiting the potential benefits this would bring to disadvantaged consumers. In addition there are social and traditional forces which govern the way the elderly poor shop for food. If they are only shopping for themselves, they may not be motivated to purchase full meals and they would generally tend to consume less food in comparison to younger people (Fanning, 2003). Package size is therefore important, as is design, because products need to be easy to handle and open, and the elderly consumer may often be used to certain cooking practices such as stews and casseroles, or be limited in the preparation and cooking facilities available to them (Sidenvall et al, 2001; Wrigley et al, 2002). There are sometimes health concerns such as the need to adhere to certain diets, or dental problems which restrict their ability to eat particular foods. Lack of nutritional knowledge or living in more deprived neighbourhoods can also affect food habits. Morland et al (2002) concluded research into the distribution of foodstores by the wealth of a neighbourhood and race, by stating that poor minorities (including the elderly poor) may not have equal access to healthy food choices compared to others. In support of this, Cummins and Macintyre (2002b) indicated that the cheaper food in poor areas had higher fat and higher sugar content. In terms of the reasons the poor make food choices, Garnett and Joffe (2001) claim that low income consumers tend to stock up on fatty and sugary foods, which often have special promotions, as their calories per pound spent are higher and there can often be less cooking costs involved. Morland et al (2002) claim that the poor rely on such processed food as they can buy it in smaller quantities.

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Eating a balanced diet in fresh fruit and vegetables and low in fat gives protection against heart disease, stroke, some cancers and a number of other ailments generally associated with old age. However, the Food Safety Authority of Ireland (2000) detailed a range of international studies which illustrate generally the poor nutritional status in independently living older people. It is therefore essential for the benefit of not only the elderly population, but the health services and society as a whole, that all efforts are made to make a good selection of groceries widely available and easily accessible for the older consumer. In this respect however, it is not the government which has the sole food providing responsibility, as retailers and their policies are failing to take their share of the blame for the unnecessary level of foodrelated ill health in society (Lang, 1994). The next section examines policies in the grocery industry which assist access for the likes of the elderly poor, and suggestions on future improvements that could be made as indicated by a review of the literature.

2.2.4 Grocery Policies In measuring and subsequently alleviating poverty Pringle (2002) claims that most analyses are complex and arbitrary and do not tackle the root problems of poverty. Hence, he endorses simple strategies to target individual ground-level problems associated with poverty which, once implemented, can have their effectiveness easily measured. He also stresses that sometimes several different problems can be solved together through one initiative. For example, in terms of this research, lack of mobility to supermarkets and high prices locally could potentially be resolved by a local multiple providing a regular mobile shop to specific locations. Through the literature a number of initiatives and policies which have been introduced to improve the elderly poors access to grocery services have been mentioned. Many of these, as Pringle advocates above, are simple solutions to specific problems. However as Wrigley et al (2002) outline, it is important to be aware that changing accessibility of retail services may not change the behaviour of consumers. What is important is that policy responses should not tell people what to eat and where to shop, but should provide facilities which give them choice. There have been a number of ideas on improving access to grocery services aimed at enabling the elderly poor lead more independent and fulfilling lives, and some of these are summarised below.

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Mobile Shop Facilities

In Newham, London, special food access initiatives have been introduced to combat the problem of food deserts. One initiative is the introduction of mobile food shops that supply not only fresh fruit and vegetables, but also heavy items such as washing powder (Aston-Mansfield, 2001). Mobile shop vehicles have already been introduced in the Newham area and have been specially constructed with steps, railings and disability access to enable shoppers to come on board and select their own goods. They have been fitted with musical tone similar to familiar ice-cream floats, and stop at specified locations along a designated route. Out-of-Town Levies

Lang (1994) recommends internalising the full environmental cost of transporting goods into the prices charged by large supermarket chains, rather than externalising these costs to the immobile consumer. This could be implemented via government intervention for example by imposing taxes or levies on retailers located in out-of-town locations, thereby providing small local stores with less competitive inequality. Transport Provision

On a more basic level, both Williams (2000) and Garnett and Joffe (2001) suggest providing minibus services at reduced rates to enable elderly shoppers gain better access to larger grocery stores. This would provide them with an opportunity to get better value for money and increase their consumption of items such as fruit and vegetables. Alternative suggestions include the introduction of tax incentives to foster transportation services to hard to serve communities. These areas are not necessarily rural (in certain locations throughout Ireland, Rural Transport Initiative supports transport facilities), but could include older, isolated urban locations cut off from public transport facilities or with reduced services. In addition subsidised taxi services or ring and ride community transport services could be implemented. However, these proposals could have a huge impact on local stores, withdrawing custom from them and making them even less able to compete. Local Service Adjustments

Certain local stores can also make efforts to improve service. Despite changing consumer markets and the vast changes in general consumer preferences, local stores need to focus on the unique benefits they can offer the customer. Broadbridge and Calderwood (2002) emphasise that by offering unique, tailored products or social facilities like a community caf, some local shops can enhance the social and community function they serve, appealing amongst others to older consumers.

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Delivery Services & Shopping Assistance

Delivery services specially designed for the elderly, perhaps for economic and logistical purposes to a central location such as community centres or purpose-built villages for the elderly. The Irish government aims to assist vulnerable groups such as the elderly, by funding community groups to provide volunteers who can assist in giving support services such as shopping and transport for older people (Office for Social Inclusion, 2003). Food Co-ops and Farmers Markets

Alternatively the creation of voluntary food co-operatives (VFCs) is advocated by Freathy (2003) as a proactive response to the exclusion of certain consumers from the general market place. These co-ops aim to supply fresh, low cost, high quality produce to those in society who would otherwise not have access to such items. An example in Ireland would include a food Co-op in South Hill, Limerick. An array of farmers markets throughout the country also cuts out the middleman and provides good quality produce direct to the consumer. These initiatives are on the increase and have the encouragement of organisations like An Bord Bia in Ireland. They can be held in various locations including school halls or community centres, including those in elderly villages. Cook and Taste Sessions

Again in Newham, London, opportunities to teach people how to cook and eat nutritiously are fostered through Cook and Taste sessions, where a chef or dietician demonstrates on a weekly basis how to prepare simple, nutritious low-cost meals (Aston-Mansfield, 2001). These could potentially be run in conjunction with various food co-ops and farmers markets where the produce is easily available. Special Food Taxes

A radical suggestion in an article by Garnett and Joffe (2001) to tax saturated fat foods and not cholesterol neutral-foods is based on the fact that it would influence the price sensitive poor who spend a greater proportion of their gross income on food. However, this contrasts with the opinion of Wrigley et al (2002) that policy responses should not impose rigidity on peoples choice. Other general suggestions include:

Local retail solutions and stores appropriate to the size of the community could be introduced through well planned, structured systems of consultation such as local retail forums

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Training and fiscal incentives (rate, tax and rent relief) for shops in low-income areas to promote their services and reduce overheads. This could be in conjunction with local marketing campaigns designed to encourage residents to shop locally.

High priority to tackling neighbourhood retail crime. Governmental support to local fruit and vegetable growers to supply surplus crops to elderly

homes at reduced rates. While access to particular stores is important, in-store facilities are equally important for the elderly poor if they are to be involved in normal shopping patterns. To facilitate this, suggestions have been made which include:

The stocking of vegetables in butcher shops or the sale of more fruit in convenience stores. Better layout and clear, large, well-lit signage in stores - particularly for prices. Space to accommodate older people, especially those with wheelchairs or walking frames, and

facilities such as rest areas or motorised or shallow trolleys that are readily available. Labels in large print on merchandise, including details to assist those on special diets for health

reasons. This information could be available either on the package or by scanning the item on conveniently located in-store scanning facilities.

Products generally consumed by the elderly to be placed on shelves within easy reach. Providing retail staff with disability awareness training.

The Scottish Community Diet Project (1997) claim that many schemes and creative projects are at best curative rather than preventative. It is therefore essential when offering solutions to prioritise those that prevent poor access to grocery facilities rather than those that merely accommodate it by lessening its adverse affects. This is a key point to encompass in any future policies. While the above suggestions have been made in the literature, it remains to be seen the extent to which they are applicable to the Irish situation and, in many cases, which organisation, if any, would assume responsibility for their implementation. Government, grocery retailers, voluntary groups or local businesses, for instance, could provide subsidised transport, but further research is necessary to examine the best solutions to the issues raised, with an emphasis on how best they could be achieved or provided.

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Section 2.3 Financial Services

It was found that much of the available financial services literature focuses on the provision of facilities through banks. In subsequent parts of this research programme however, the aspects of financial services relate to a combination of banks, building societies, credit unions and post offices.

2.3.1 Changing Financial Services Environment

As with the grocery sector, retail financial services have seen radical changes over the years. Traditionally it was only possible for customers to conduct retail banking between restricted hours in bank branches, which were generally located on each towns main street. Now there are a wide range of investment and banking opportunities accessible 24 hours a day, through the likes of ATMs, telephone or internet connections. Such advanced technology enables the customer to get account balances, pay bills, transfer money, and get loan approval in a variety of ways, thereby maximising their financial services options. With extra technological investment and new foreign entrants to the market, Irish financial services have seen unprecedented competition, and hence the intensified pressure to reduce costs has affected the way banks deliver bank services. Many standard services are no longer routine. Out-of-branch banking in the form of ATM, internet or telephone banking is favoured over direct over-the-counter service provision and subsequently branch networks have been restructured countrywide with numerous branches being closed and sold off. It would appear however that the branches being closed are not those that are unprofitable which would include the likes of student branches, but rather those with no future potential. Such measures further divide society into the haves and have nots (Seanad Eireann, 2001). These dramatic changes in the Irish financial services sector have contributed to the establishment of a new, Irish financial services authority, to assist the Central Bank in assessing among other things, the adequacy of each banks network when renewing bank licences, and whether or not to attach conditions to the renewals (Seanad Eireann, 2001).

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As life has become more complicated consumer reliance on financial services has also increased. Facilities such as mortgages, credit lines and pensions are essential for many in organising their daily lives and planning for the future, making life easier and reducing expenses (Policy Action Team, 1999). As society continues to offer benefits to those in the financial services system such as store credit cards, discounted credit facilities for providing bank history, or for better bill payment options (such as payment holidays) for direct debit payments, those who do not fully partake are further marginalised or penalised. Fishbein (1998) claims technological advances limits and penalises non-technologically advanced consumers and those with no access to telephone or internet facilities. For the unbanked, who paradoxically have perhaps a greater need for consumer credit to manage week-to-week household budgeting (Comptroller of the Currency Administrator of National Banks, 1997), they can only borrow at high percentage rates and often lack basic insurance cover, leaving them prey to fire, burglars, death or injury. Fishbein (1998) claims that such trends have already developed a two-tiered banking system one for the wealthy and another more expensive one for the poor.

2.3.2 The Unbanked In the US, studies by Caskey (2002); Comptroller of the Currency Administrator of National Banks (1997); and Stegman (1998) reveal that among the characteristics of the unbanked are people in lower/moderate income groups, who are less well-educated, and living in households classified as rented accommodation. In Britain, McGill (2002) describes the unbanked as typically single women, either very young or very old, of lower social classes, with some ethnic minorities more likely than others to be included. He references a study by Kempson (2001), which revealed that 30 per cent of pensioners over 70 years of age had never had a bank account mostly because of low income. Of those over 65 only 62 per cent have a current account, compared with the national average of 74 per cent. It is evident that those on low incomes, including the elderly, may potentially remain outside the banking system. On further examination of the literature, it indicates that there are personal issues and preferences which can explain why the elderly poor may not use financial services:

For those with low incomes, every penny counts and the fee charges to maintain bank accounts are regarded as too expensive. Living on such small amounts also implies they often have no savings to keep an account.

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In maintaining accounts on low balances, there is a greater risk of bouncing cheques, which in turn can result in costly penalties. Therefore, there is a constant worry about overdrawing or falling into debt with the bank.

Ignorance or lack of banking experience may make them uncomfortable dealing with banks. In such situations the economically illiterate have other ways of cashing cheques or operating simple financial transactions outside the banking system, such as in local shops.

The desire for financial privacy has been mentioned as a reason why individuals on low incomes prefer not to use financial services, particularly if the perception is they will be penalised by government for any savings they may have.

Difficulty in physically accessing branches, for instance, transport may be required to get to nearest branch and difficulties created by mobility or poor eyesight or hearing make in-branch transactions problematic.

When cash is limited there may be a fear of not being able to get to, or find, an ATM when required. Similarly, a fear may exist of not being able to withdraw cash in smaller denominations or the possibility of a machine breakdown. In particular, as McGill (2002) outlines, the elderly may not use bankcards because they dislike or mistrust machines; they fear for their personal safety while withdrawing cash on the street, or they are afraid of forgetting their PIN number.

On the administration side of banking, to open a bank account, photographic identification is often required such as a passport or driving licence, but those on low incomes may not hold such documents to facilitate this.

One significant development in recent times has been the introduction of Electronic Funds Transfer (EFT) in the payment of social welfare benefits. In several countries, recipients of welfare payments receive their money exclusively through Electronic Funds Transfer to a bank account. In Ireland, EFT payments are currently one of a number of payment options available to welfare recipients including the traditional pension book. McGill (2002) indicates that EFT, as a new method of fund distribution, has a number of advantages for the government which include:

Minimising costs related to postage, printing, replacement cheques and regular administration Decreasing the risk of fraud Increased safety of cash Promoting financial inclusion by introducing the previously unbanked into the financial services

system

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Despite the personal preferences of those involved, Stegman (1998) claims Electronic Funds Transfer will encourage and enable the poor to be more savings conscious and financially self-sufficient. He also claims it has vast human and community development potential by nurturing financial and economic literacy. These advantages are matched with reservations expressed by those wary of the system, such as those who are used to cash budgeting, who need money guaranteed on the right day or those who want a quick, familiar, simple process. While the Department of Social and Family Affairs (Personal Communication, 2003) indicated there were no immediate plans to make EFT mandatory in Ireland, they are currently reviewing their payment methods in detail and it is a possible scenario for the future. This will obviously have implications for the elderly poor who are currently not part of the banking system. Even those who utilise financial service providers other than the banks will be disadvantaged if, as is currently the situation, organisations like credit unions cannot be used for electronic transfer/payments.

2.3.3 Financial Services Policies

In research conducted by Moschis et al (2003) it was revealed that older consumers placed greater value on the convenience aspect of accessing a financial services provider than younger people. This was the most common motive for those aged 55 and over in choosing a particular financial institution and illustrates the importance of access in this regard. For those over a certain age and on low incomes there are additional issues involved. As the Policy Action Team (1999) state, financial exclusion will be eliminated when people on low incomes get good basic services at a reasonable cost. The following points illustrate some such introductory measures aimed at facilitating or suggested as improvements in access for the elderly poor in their banking transactions. Improving Technological and Financial Literacy

It must be remembered not to assume that the elderly poor cannot learn new ways of doing things and that they can only bank in branches (Thompson, 1998). In Britain, UK Online is a government initiative aimed at getting everyone to use computers by 2005 and in real terms, this has meant a number of measures have been introduced to assist the elderly in becoming accustomed to internet banking. Meanwhile in Ireland, the government have introduced measures to promote e-inclusion to ensure everyone has access to online facilities and can engage in a meaningful way with information

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technology (Office for Social Inclusion, 2003). These initiatives, funded under an Information Society Fund, include free internet access points in public libraries and CAIT (Community Application of Information Technology) programmes. Several examples of how business initiatives that improve access to financial services for the elderly are evident. In Britain, Abbey National Bank, for instance, installed computer terminals in Age Concern centres to assist silver surfers in accessing their finances and in a similar move, Barclays introduced buses with workstations on board, all wheelchair accessible, to visit rural areas according to a fixed schedule, reaching out to communities that would otherwise be excluded from financial services provision. In addition, the bank also facilitates mobile computer equipment to go into day centres, care homes and sheltered housing, assisting not only the elderly who congregate there, but their carers as well (Mason, 2001). Fishbein (1998) claims that banks, governments and community groups need to reduce the technological mismatch between generations, for instance, by having linguistically friendly menus on screen, Public Private Partnerships to provide computers and training to the non-technological advanced, and lifeline accounts for low income groups which enable them to utilise essential financial services. Targeted Assistance

In Canada, the Royal Bank of Canada have audio bank machines to assist those with special needs such as the visually impaired, talking them through the electronic transaction step-by-step via headphones. Other initiatives deployed by the same bank include large print cheques, Braille bank statements and guides to cheque writing (Royal Bank of Canada, 2002), while Citibank in the USA offer outreach efforts through in-branch training, formal seminars to community groups in community centres, homes for the elderly, and churches (Thompson, 1998). Community Initiatives

On a more general level under a campaign for community banking in the UK, but nonetheless an initiative which affects the elderly, McGill (2002) illustrates an example of community banking in Edinburgh. Financial institutions tendered for involvement in a Community Banking Agreement, being financially enticed by the potential of managing the local housing association funds together with the council funds and the household income in the area. Such efforts bring banking closer to the disadvantaged in society. Caskey (2002) calls for banks to open special outlets conveniently located in low income areas providing cheque cashing facilities and deposit-secured loans for people with poor or no credit history.

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Joint Ventures

In recent times, joint ventures or partnerships between financial institutions and other organisations such as local community based agencies have developed to provide financial advice and budgeting services, or simple transaction opportunities through local stores or pharmacies have been introduced. In Ireland this would include AIB bank services being offered through the post office network while Bank of Ireland have teamed up with Royal Mail in the UK. Customer Service

Recommendations by Moschis et al (2003) insist that financial service providers should concentrate on value-added offerings such as assistance with form filling when marketing to older consumers. It is also suggested that new services should not overwhelm clients with unfamiliar information or unfamiliar brand names. Services should be easy to use, efficient and practical, helping the elderly to overcome any physical disabilities. A selection of other innovations have been suggested (Comptroller of the Currency Administrator of National Banks, 1997; McGill, 2002; Policy Action Team, 1999; and Stegman, 1998) to attract the unbanked into the financial services system:

Relaxation of conditions imposed for maintaining bank accounts, e.g. no minimum balances or a system of charging fees weekly or monthly rather than quarterly, which makes budgeting on a low weekly income easier.

Enable bill payment by cash or cheque at ATMs. Modification of products offered to cater for the likes of the elderly poor, such as special low-

income insurance policies or low charge, maximum transaction accounts. Group insurance policies e.g. for basic home contents by social housing providers. Social fund operated through a financial institution which could provide credit for low income

households who would otherwise use the likes of unlicensed moneylenders Banks introducing specially devised formats and the use of staff that can relate to the

unbanked sector e.g. older tellers

However, an important theme in the literature is balancing the personal touch with new technologies. The elderly are used to dealing with people and anonymity only further excludes them from financial services. As with grocery services, the above suggestions and best practice examples remain just as examples, until certain institutions, whether governmental, financial or voluntary, decide to act upon and implement them. Further research could determine how best to achieve them.

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PART THREE: Agency Interviews

Section 3.1 Overview of Agency Interviews 3.1.1 Introduction Following the literature review, the experiences and knowledge of various agencies and organisations were investigated to provide an overview of the issues involved in accessing grocery and financial services in Ireland for the elderly poor. Information was gathered through interviews with key personnel in relevant organisations. Section 1.2.2 provides information on the nature and structure of these interviews.

3.1.2 Where are the Elderly Poor in Urban Dublin? The experience of those providing services for the elderly in the Dublin city council area suggests that the elderly living in private rented accommodation are the hardest hit by poverty and certainly the most vulnerable as the rental market is so insecure. Also older people in their own homes, often from middle class backgrounds, who outwardly appear comfortable, can have great difficulty in surviving financially. Maintenance on their homes is expensive and due to the fact that their surrounding neighbourhood may not be as closely knit as perhaps lower income areas, they are more isolated from others and local community services are less aware of their situation. Those living in sheltered accommodation have perhaps more assistance and convenience than any of the others.

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Section 3.2 Grocery Services

3.2.1 Factors Influencing the Grocery Shopping Habits of the Elderly Poor As with all those in poverty, the elderly poor are constantly juggling competing demands for their small income. These demands include heat, ESB, gas, rent, transport and food, many of which are seasonal in nature and can vary enormously throughout the year. Frequently, as was confirmed by interviewees, food is regarded as a flexible expenditure which often suffers when other bills and expenses arise. If the elderly poor cannot access reasonably priced grocery items with their remaining small allowance, they obviously suffer as a consequence. Lack of family or neighbourly assistance in todays society means the elderly poor must often cope alone, both in accessing grocery supplies and managing their purchases. The prominence of self-service