Pub sales rose last month

CONSUMERS left their cars at home last month and instead took to the pubs.

Figures show sales in bars jumped 1.6% in June while fuel sales fell 0.7%, bringing the yearly drop in fuel sales to 12%.

Car sales rose last month by 4.8%, bringing the annual increase to almost 22%. Sales were boosted ahead of the ending of the “scrappage scheme” at the end of June. While clothing sales are down 0.5% annually, they increased 3.1% last month.

Figures from the Central Statistics Office (CSO) showed that the volume of retail sales in June rose by 1.1% compared with May, giving an annual increase of 0.2%. However, when the strong motor sales are excluded, sales fell 0.1% last month, bringing the annual decline to 4.2%.

In June sales at department stores rose by 3% while sales of furniture and lighting were up 2.4%. Although bar sales were up last month, they are down almost 6% in the year.

The value of sales, which takes prices into account, increased by 0.7% in the month giving an annual rise of 0.4%.

Small business group ISME said that thousands of retailers were at “breaking point” and four out of 10 expect to cut jobs this year.

ISME chief executive, Mark Fielding, said: “With retail sales consistently falling since 2007 and excessive costs being imposed on the sector, it is no surprise that the vast majority of retailers are struggling.”

ISME has called for the immediate introduction of a Retail Strategy Group, to implement policies that will address the slide in retail sales.

This call was echoed by Retail Excellence Ireland, which also urged “urgent government action”.

Research from ISME found that half of all retailers have shed jobs in the last 12 months, while 54% are unable to pay commercial rates in 2011.

“The current trend in sales, together with the high costs imposed on retailers, is unsustainable, with the resultant ongoing closure of shops and subsequent job losses.

“The retail industry needs to be allowed adjust its cost base to the changed economic conditions. This means reducing the biggest costs to retailers, such as labour, commercial rates and rents,” said ISME chief executive Mark Fielding.

Alan McQuaid of Bloxham Stockbrokers expects retail sales to remain “fairly weak” over the rest of the year. “Consumer spending is likely to maintain the downward trend of recent years.”