Retail sales declined 14 per cent during the final three months of 2009 compared to the same quarter a year earlier, according to new figures from Retail Excellence Ireland (REI).
However, there was a slowdown in the rate of decline during the quarter indicating that a return to like-for-like growth in late 2010 is likely.
“Retail sales figures for quarter four marked a relatively stable end to what was an extremely challenging year for the retail industry. The most telling information coming out of the figures was the extent to which consumer sentiment dictates the overall health and prosperity of the industry," said REI chief executive David Fitzsimons.
"Consumers very obviously contained their spending in anticipation of the budget with November proving the weakest trading period of the quarter and one of the weakest of the entire year,” he added.
Grocery sales fell by 10.87 per cent during the quarter while menswear sales were down 21 per cent as against the same three-months a year earlier.
Sales of giftware or homeware and ladies fashion items also continued to experience difficult trading with sales declines of 17 per cent and 16 per cent respectively.
The Average Transaction Value (ATV) per consumer was 19 per cent lower than in the fourth quarter of 2008 with shoppers spending €45.29 compared to €56.16
REI said that while the latest figures did not in themselves reveal any immediate breakthrough for the industry, the stabilisation in decline is reason to believe that the retail industry will turn the corner this year.
“A positive indication for the industry coming out of these figures is that the rate of decline appears to be slowing and all the early signs are that retail sales may well rebound in the second half of this year, based on like for like growth. The flipside of that assumption is that the potential for growth is predicated on the failure of weaker businesses,” said Mr Fitzsimons.
“While retailers appear to be keeping a handle on wage costs via extensive labour rationalisation programmes, rent cost as a percentage of sales continues to be the single biggest issue facing the industry. As we enter 2010, our agenda remains unchanged. We will again be calling on the Government to intervene directly in modifying rent and wage costs and taking every step possible to boost consumer confidence by whatever means it has at its disposal,” he added.
Retail Excellence Ireland represents more than 580 companies in Ireland which together employ approximately 100,000 people.
