New CSO retail figures show consumer confidence at record low
Print22 July 2011
CSO retail sales figures for May show consumer confidence remains at record low levels.
The CSO retail sales figures for April and May 2011 showed that year-on-year figures for retail sales continue to fall, with sales volumes in May 2011 down 5.1% on equivalent sales in May 2010.
May marked the 39th consecutive month of declining sales for the retail industry.
Retail Excellence Ireland CEO, David Fitzsimons, said that the figures for May illustrate just how difficult trading conditions are for retailers in Ireland.
“Sales of hardware and furniture continue to decline month-on-month and year-on-year as consumers hold off on major home purchases. The fact that year-on-year sales of clothing and footwear and books and newspapers are also down shows clearly that consumer confidence is at a low, particularly given that a recent survey by Eurostat* showed that Irish retail prices in these categories are below the European average.”
Fitzsimmons said that the dire retail industry performance is a clear indication of the urgent government intervention required to reduce retail industry costs.
Weakened consumer sentiment, job insecurity and interest rate increases have negatively impacted on consumer spending, leaving retailers with no option but to further reduce business costs to stay in business, he said.
IBEC group, Retail Ireland, said that the new figures show the urgent need to address retail rents, local authority rates and Joint Labour Committees.
Retail Ireland director Torlach Denihan said: “The fact that a further decline in core retail sales (excluding cars and bars) is announced on the same day as new research shows that retail rents in Dublin are the second highest of 25 European cities surveyed shows the extent of the problem facing the retail sector. The value of core retail sales has fallen by over 20% since 2008, yet Ireland is one of the most expensive places to run a retail business in Europe. Government has promised action on the rents, but high local authority rates and labour costs also need to be tackled.”
IBEC chief economist Fergal O’Brien said that one of the reasons we are still losing jobs in the economy is because consumers are too afraid to spend.
He said that external factors such as the euro zone debt crisis was worrying shoppers and that greater clarity was needed around the issue of new taxes and charges so that consumers knew what they could spend.
* The Eurostat survey looked at consumer prices in 37 European countries, via a survey of 2,500 consumer goods and services. It found that Irish prices for clothing, footwear, furniture, furnishings, household appliances and consumer electronics are all priced below the EU average.
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