Retail sales volumes rose by 0.5 per cent last month and were up 5.1 per cent on an annual basis, new figures from the Central Statistics Office (CSO) show.
If motor trade figures are excluded, there was a 1.9 per cent rise in the volume of retail sales in December and a 4.8 per cent jump in the annual figure.
The value of retail sales rose by 0.1 per cent when compared to November and were up 2.3 per cent on an annual basis.
If motor trade figures are excluded, the monthly increase was 0.9 per cent with an annual rise of 1.7 per cent.
Sales of pharmaceuticals medical and cosmetic articles led the rise in sales last month, up 4.5 per cent. Hardware, paints and glass volumes were up 3.9 per cent while fuel-related sales were up 2.3 per cent.
Furniture and lighting sales suffered the biggest declines on a monthly basis, falling by 2.3 per cent.
The latest figures accord with recent Retail Excellence Ireland data which indicates that while activity and spending levels have risen, the numbers were not as strong as had been hoped for.
“The retail sales data again confirm the steady improvement in activity levels witnessed throughout 2014. However the 4.8per cent increase in volume when motor trades are excluded, and the only marginal increase of 1.7per cent in the value of sales illustrates the deep levels of discounting the retailers had to offer to attract footfall and spend pre-Christmas,” said the organisation’s chief executive Seán Murphy.
“Consumer behaviour has been changed by the recession with a strong focus on ‘basket splitting’, deals and discounts. We now know the Christmas period commences with Black Friday. The CSO figures underline the fact that for many businesses the spend was simply brought forward and did not stay strong in the run up to Christmas Day,” he said.
Lobby group Isme warned of a challenging yaer ahead for retailers and called on the Government to do more to support the sector.
“Christmas sales improved but not to the levels predicted by the ‘big retailer’ associations and less than hoped for by SMEs, to salvage a very difficult year. The recovery has yet to be felt by our domestic retailers and jobs continue to be at risk in this sector. This Government seems to be too busy focusing on the upcoming election to consider the problems being faced by local shops and communities and town centres, which will suffer as a result,” said chief executive Mark Fielding.
Alan McQuaid, chief economist with Merrion Capital predicted strong retail sales for this year however.
“Buoyed by an improving labour market, consumer spending last year for the first time since 2010 made a positive contribution to GDP growth, with an estimated increase of around 0.8 per cent. A stronger rise, of 1.5 per cent, is projected for 2015, with retail sales again likely to be well up on 2014,” he said.
