Retailers pessimistic about trading outlook

Despite figures today indicated a rise in consumer confidence for February Irish retailers remain pessimistic about the trading outlook, according to a new survey.

The survey of 112 businesses was carried out by last month by Retail Ireland, the representative body for the entire retail sector in Ireland.

"Retailers' confidence in their own businesses is weak," Retail Ireland Director Torlach Denihan said.

"Some 56% of respondents rate the prospects for their business over the three months March-May as poor or very poor, some 27% rate it as average and only 17% rate it as good for this period."

Mr Denihan said 67% of respondents rate the overall current business environment as poor, 23% rate it as average and 10% rate it as good.

"Just 7% of respondents are more confident about their business than they were three months ago, 60% are less confident and 33% of respondents report similar levels of confidence," he added.

"Only 3% of respondents expect employee numbers to increase, with 43% expecting to reduce employment in the next three months and 54% expecting numbers to remain unchanged."

Mr Denihan said urgent action was needed from the incoming Government to help revive the retail sector, restore consumer confidence and protect the 240,000 jobs in the industry.

"Since the start of the recession there has been an enormous fall in consumer spending, but the cost of running a shop has hardly fallen at all," he said.

"Reforms are needed to reduce key business costs, such as rent, labour costs and commercial rates, and to improve access to credit."