Retail group hopes for shopping surge after 'perfect storm' of recent weeks

RETAIL EXCELLENCE Ireland is cautiously optimistic the next two weeks will mark a significant upturn in trade for retailers reeling after what it said was the weakest December in recent history.

The umbrella group for the sector said it expected sales for the month to be down almost 7 per cent on last December, which was a very poor month.

“The retail industry has been hit with the perfect storm in recent weeks,” head of the retailing umbrella group David Fitzsimons said. “If IMF intervention and a very severe budget were not enough, the arrival of Arctic conditions has minimised shopping activity and has left many of the largest destination shopping centres and cities near empty.”

Dublin retailers, and those operating in major shopping centres, were worst hit by the triple blow, with many rural shoppers deciding to do all their Christmas shopping locally.

According to the lobby group, some big shopping centres have been shown to be poorly prepared for snow, especially those with open surface car parking. Local authorities could also have done more to make local towns more accessible over recent days.

The latest retail report says the Arctic conditions have decimated late-night trading as customers are anxious to get home as early as possible.

Gift card sales are significantly lower as customers spend less and concern grows about the ability of some retailers to continue to trade.

Credit card sales are far reduced, with many consumers opting to spend what they have.

It says consumers are still seeking out bargains and asking for additional discounts at tills, especially when shopping with independent retailers. Many shopkeepers said shoppers were so focused on price that in some cases “they are buying the discount and not the product”.

One glimmer of good news for retailers in yesterday’s report suggests that cross-Border activity is significantly reduced compared with last year, something attributed to the exchange rate, a more competitively priced offering in the Republic and the adverse weather.