Christmas retail sales 'positive'

Pre- and post-Christmas purchases are up on 2011, according to retailers.

Early figures show that Christmas week and this week appear to be better than last year, but it's likely that retail sales for the whole of 2011 will end up at around the same as those in 2010, according to Retail Ireland.

However retailers remain pessimistic about next year's prospects.

“Having seen a rise in sales in early December, the middle of the month saw sales fall again," Retail Ireland Director Stephen Lynam said.

"Christmas week and the current week appear to be better than last year, but it is likely that total retail sales for the whole of 2011 will end up at around the same as those in 2010.

“The good pre- and post-Christmas figures are welcome, but this year’s sales are being compared with a disastrous Christmas last year. It is also possible that many shoppers are trying to beat the 2% VAT increase which comes into force next week."

Mr Lynam said that the mood among retailers was "grim" in relation to prospects for the coming year.

"Consumer sentiment is poor and retail businesses are struggling," he said.

"Many may close early next year."

He called on the Government to review VAT receipts in March and reverse the 2% increase if the expected tax take is not reached, to tackle the black economy and to review business charges with a view to reducing the burden on the retail sector.

Retail Ireland is the representative body for the entire retail sector in Ireland and is affiliated to IBEC. Its members have 3,000 shops.