Retailers hit by ‘lacklustre’ Christmas
CSO figures for December showed that excluding car sales, retail sales fell 2.7% when measured in terms of volume from November, but were up 2% from a year earlier.
In value terms, excluding car sales, retail sales fell 1.6% from November and rose by a meagre 0.2% from the previous Christmas period. The CSO said that including car sales that the volume of retail sales climbed 5.9% in 2016 and by 3.8% in value terms.
Issues such as online purchases and shoppers tapping the slump in sterling by buying in the North, “are likely playing a role, but [there] was also some weakening in consumer confidence in the second half of 2016”, said Dermot O’Leary, chief economist at Goodbody Stockbrokers.
“The vast majority of the sales categories saw a slowdown in December, with the worst performances in books and newspapers and food and beverages,” he said.
Alan McQuaid, chief economist at Merrion capital, said “the Brexit fall-out and the uncertain economic implications will likely impact negatively on Irish consumer sentiment, resulting in lower personal spending in the months ahead.”
Business group Isme also warned about the coming months. “Our latest research shows the retail sector is the most effected by Brexit with business confidence and profitability expectations dropping to their lowest in five years,” said CEO Neil McDonnell.
