Tills quieter as shopper numbers down more than 4%

SHOPPER numbers at Irish shops fell more than 4% in the first three months of the year, compared with the same period last year.

In March alone, the figure plunged by 8%, according to research from services firm Experian.

Confirming the exodus of shoppers to the North, the figures show numbers there jumped 7% in March compared to the same period last year.

Northern Ireland recorded year-on-year footfall growth. Experian said the figures show the stark predicament facing the retail sector in Ireland.

The increases in PRSI and income levies announced in the recent budget means people will have even less disposable income and will refocus their spending onto essentials items such as food and fuel, according to property services manager with Experian Mark Mullally.

“A footfall reduction of 8% is very significant and confirms that trading conditions for retailers around the country are very difficult in the economic downturn.

“When you consider this decrease in spending power, along with the increased costs facing retailers, 2009 is shaping up to be a very difficult year for shopping centres and the high street.”

Mr Mullally said there is no doubt retailers in the North are benefiting from increased shopping traffic from the Republic.

“It is interesting to note that the footfall index in Northern Ireland is consistently increasing this year compared to last,” he added.

Irish retail sales fell by a record 20.4% in January, according to the CSO. Retail Ireland warned earlier this month that consumer spending will fall by a minimum of 6% to 7% this year.

The IBEC-affiliated body has already predicted that 25,000 more jobs will be lost in the sector before the end of this year. It also said that the continuing trend of consumers going to the North to avail of the lower VAT rate on goods will continue. It says this could cost the exchequer far more than the e72m to e112m previously forecast by the CSO and Revenue.