Retail sales down in January

The volume of retail sales in Ireland fell by 4.8% in January 2010 compared to January 2009, new figures from the CSO today revealed, while the value of retail sales decreased by 8.4%.

The majority of sectors showed year on year volume declines with the most significant declines being:

- Motor Trades down 4.5%

- Pharmaceutical Medical and Cosmetic Articles down 2.0%

- Clothing Footwear and Textiles down 4.2%

- Bars down 9.9%

- Other Retail Sales down 11.7%

Despite the fall, the slowing in the rate of decline was welcomed as postive by employers' group IBEC.

‘The January retail sales figures are also more encouraging, but only in context of 2009, when sales in many sectors were essentially in free fall," IBEC economist Reetta Suonperä said.

"Sales continue to decline on an annual basis, but at a slower rate than in any month last year.

"Though it is too early to point to a definite improving trend, a slower pace of deceleration is good news,’ concluded Ms Suonperä.

However Retail Ireland, the IBEC group that represents the Irish retail sector, said the figures show the sector continues to face a very negative trading environment.

"The rate of decline has slowed somewhat after the freefall in 2009, but unfortunately the downward trend reflects the weak consumer sentiment figures released yesterday," Retail Ireland director Torlach Denihan said.

"Sales continue to fall and retailers continue to cut prices."

"Only when we bring down our costs to those of other European countries will we avoid the current regrettable situation where retailers are forced to close shops and reduce staffing levels," Mr Denihan added.

"Rents in particular have not been reduced and in some cases are being increased under upward only rent review clauses."