'400 retail stores will close by end of month'

Some 400 retail stores will be closed here by the end of the month, according to new figures from Retail Excellence Ireland.

The group today said that results from the final quarter of last year show the industry is still in big decline.

It was the 34th consecutive month of decrease for retail sales.

The group also says concern continues to grow over untenable rent and labour costs.

Footwear was the strongest performing sector in December - while ladieswear was the worst performing area in terms of sales.

“The decline in retail sales continued during Q4 2010," said REI Chief Executive Officer David Fitzsimons.

"The quarter saw a continuation of the negative growth trend that has predominated in recent years.

"Concern continues to grow regarding untenable rent and labour costs."

Mr Fitzsimons said adverse weather conditions in the latter period of the year had prompted consumers to shop locally, benefiting rural retailers.

"A positive which can be drawn from the period is the fact that the like-for-like rate of decline has modified to -3.63% and the level of market volatility continues to modify," he added.

Mr Fitzsimons also held out little hope for prospects of an immediate improvement.

“As the measures contained in Budget 2011 work their way into real and anticipated incomes, the disposable income consumers have to spend has been reduced," he said.

"Together with the current political uncertainty and prospect of a general election, this is likely to hamper any prospects of an immediate return to growth and more probably could contribute to accelerated market decline."