REI: New Government must act to halt retail job losses

There will be further job losses in the retail sector unless the new Government takes action to remedy problems facing the sector, according to David Fitzsimons, chief executive of Retail Excellence Ireland (REI).

Its estimation was that some 2,700 workers at member companies in January were made redundant due to the economic downturn and the high cost of doing business.

He made his comments following the publication of figures from the Central Statistics Office (CSO) which shows that retail sales fell again in December and January.

The new Government must take urgent action to boost consumer confidence and realign business costs to assist the retail industry, according to Mr Fitzsimons.

It would have to end the situation of upward-only rent reviews and deal with the issue of increases in local authority rates, and there was also the fact that retail pay rates set by Joint Labour Committee were in the present climate unsustainable, he said.

The CSO figures show that in January retail sales volumes, excluding the motor trade, declined by 1.2% year-on-year and the value of retail sales, excluding the motor trade, fell by 1% year-on-year.

Fitzsimons said the findings indicated that the decline in retail was continuing.

He said that the REI is looking forward to the publication of a new programme for Government containing important measures to address these problems, as promised by Fine Gael and Labour during the election campaign, followed by swift action and implementation.

Labour South Central TD Ciarán Lynch Labour has repeatedly said that his party was committed to abolishing upward-only rent reviews and implementing measures to help the sector.

Article courtesy of the Evening Echo newspaper