Survey shows improvement in retail sector sentiment

Almost a third of retailers expect sales to fall over the next three months, according to a new survey from Retail Ireland, but the same proportion are more confident about their business outlook.

Based on responses from 129 retailers polled during the first week of May, the survey indicates that

30% of retailers expect sales to decrease in May, June and July, half (49%) expect sales to stay the same and one fifth (21%) expect sales to increase slightly during this period.

Almost one third (30%) of respondents rate their own business currently as poor or very poor, half (51%) rate it as average and 18% rate it as good.

One-third (33%) of respondents rate the prospects for their business over the next three months (May-July) as poor or very poor, just over half (55%) rate it as average and 12% rate it as good for this period.

One-third (32%) of respondents are more confident about their business than they were three months ago, one sixth (16%) are less confident and half (52%) of respondents report similar levels of confidence.

Commenting on the survey results, Retail Ireland Director Torlach Denihan said: "The results of the Retail Ireland 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.

"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."

However Mr Denihan said that high rents still remain a problem.

"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," he said.

"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. The biggest winners during the boom should now step up to the plate,"