Retail sales still struggling but a third of managers confident about future

FEWER than 20% of Irish retail managers rate their business as being in good shape, but over a third of them are more confident about their future prospects than they were at the end of the first quarter of the year.

A new survey from the IBEC-affiliated industry representative body, Retail Ireland, shows a slight improvement in business sentiment within the sector; but the big numbers are largely unchanged from earlier in the year.

In terms of sales outlook, profitability and business confidence, roughly half of respondents indicated no change to their feelings.

Around 30% of retailers, according to the survey, expect their sales to decline over the course of the next three months; with just over 20% anticipating a rise.

“The results of the survey show an improvement in sentiment in the retail sector, but it is important to note that participating companies completed the survey before developments over the last two weeks involving Greece and the eurozone,” said Torlach Denihan, director of Retail Ireland.

“We did this special survey to assess the situation in view of developments such as the decline in cross-border shopping and the slight but noticeable improvement in the consumer confidence index,” he added.

“Retailers’ perceptions of the prospects for their own businesses are improving, expectations on sales are broadly static and a very slight increase in customer numbers is expected.”

Mr Denihan reiterated Retail Ireland’s call for an overhaul of the commercial rental system.

“Prices to the public have been cut substantially and every element in the retail supply chain has made a major contribution to this, with the exception of landlords. They locked in massive and unsustainable rents during the property boom.

“Every landlord should reduce rents on a voluntary basis in the interest of lower prices for the consumer, saving retail jobs and helping the country regain lost competitiveness,” he said.