CSO figures show 1% rise in retail sales for December

The Central Statistics Office has issued retail sales figures for December 2011 that show that the value of retail sales (excluding the motor trade) increased by 1% in December 2011 compared to December 2010.

This is the first time in almost four years that like-for-like retail sales have increased.

While welcoming encouraging retail figures, Retail Excellence Ireland has warned that 2012 would be another very challenging year for retailers.

David Fitzsimons, REI Chief Executive Officer said: "After suffering 45 consecutive months of retail sales decline, December’s like-for-like sales increase is undoubtedly welcome. However it must be remembered that retail sales in December 2010 were particularly weak as a result of the severe weather.

"2012 looks set to be as challenging as recent years have been for retailers. Consumer confidence remains at record lows. The effects of the 2% rise in VAT will act as a weight around the neck of the industry in 2012.

Mr Fitzsimons said that the Government and local authorities need to take meaningful action, starting with commercial rates, if they are serious about protecting the remaining 250,000 retail jobs.

He said: While some reductions have been passed on to retailers by local authorities, reductions of 1-2% are simply not good enough considering the massive increases in rates over the last decade and the 30% drop in retail sales over the same period."