Continued Irish retail sales slump as fashion and electricals suffer

June 2011 marked the 40th consecutive month of declining sales and the unrelenting fall in sales raises the prospect of more store closures and job losses, according to Retail Excellence Ireland (REI), which compiled the figures.

Like-for-like sales declined by 4.5% in April, 8% in May and 6% in June.

REI chief executive David Fitzsimons said: “It’s clear from the Q2 figures that the decline in the retail sales has not yet reached the bottom.

“While many had hoped that during 2011 the relentless decline we have seen since 2007 would level off, this is simply not happening.

 “With further anticipated interest rate rises and the Government continuing to talk of increased charges, we don’t anticipate any pick up in sentiment in the coming months.

“As a result of this trend, allied to scandalously high retail rents and inflexible labour costs, many retailers will be forced to close their doors and more retail jobs will be lost throughout Ireland.”

Fitzsimons highlighted that 40,000 retail jobs have already been lost since 2008, and he estimates that a further 40,000 jobs are currently under threat. 

Electricals and ladies fashion were the worst performing sectors in the second quarter to the end of June, falling by 9.5% and 8% respectively.

The Grocery and Pharmacy sectors were among the best performing, although they both reported 5% falls.

Fitzsimons added: “Consumers are continuing to hold back on many of the purchases that were commonplace in recent years. Declines in areas like ladies fashions and electrical goods are symptomatic of this depressed consumer sentiment.”

REI said that “of serious concern” is the fact that all retail sectors recorded falls in year-on-year sales levels.

The Average Transaction Value (ATV) continued to decline, falling 6%.

Fitzsimons highlighted one bright spot however, referring to the abolition of upward only rent reviews in Ireland.