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Car sales keep retail figures on the up
28.02.2011
Department stores had a bad month, with sales falling back by 12pc when compared to December and almost 10pc when compared with January 2011
Although general consumer spending remains weak, retail sales increased in January, mainly on the back of another strong month for car sales.
Motor sales fell back 3.5pc in the month compared to December 2010 but increased almost 24pc on the year, according to official figures from the Central Statistics Office.
In January, retail sales volume increased by 4.6pc compared with January 2010 but if motor trades are excluded (which many analysts believe is a better indicator of consumer’s mood), sales decreased by 1.2pc.
Including motor trades, there was also a monthly decrease of 3.8pc.
Five categories showed year-on-year increases, including motoring, non-specialised stores, clothing and shoes, hardware and electrical goods.
However, substantial decreases were seen in department stores, furniture and lighting and newspapers and books.
The value of sales increased by 4.0pc when compared to the same month last year but dropped in relation to December’s figures.
Retail Ireland, the IBEC group that represents the retail sector, said the new CSO figures show a weak start for retailing in 2011.
Director Torlach Denihan said, "The value of core retail sales (excluding cars and bars) fell year-on-year by 1.5PC in January. The Budget hit pay packets in January and this had a major negative impact on spending towards the end of the month especially.
"Last year was the third year in a row in which the value of core retail sales fell and the cumulative decline is now over 20pc," he added. "The sector needs urgent action from the incoming government. While prices have been cut to the bone, the cost of running a shop has not fallen."