Sales decline set to continue - retailers

MANY RETAILERS believe sales will continue falling over the next three months, according to a survey that will be published today.

Retail Ireland, subdivision of employers group Ibec, that represents shopkeepers will publish details of a study showing confidence in the sector remains low.

Almost one-third of those who responded to the survey rated business as poor or very poor, while half rated it average and just 18 per cent said it was good.

Thirty-three per cent of respondents said prospects for the next three months were poor or very poor, 55 per cent rated business as average and 12 per cent rated it as good.

Almost one-third, 30 per cent, expect sales to fall over the May to July period, half of those questioned expected turnover to stay the same and 21 per cent expected a slight increase.

Similarly, 30 per cent expected profits to fall over the May to July period, half expect profits to remain the same and 18 per cent expect an increase in profits over the period.

The outlook for jobs in the sector is also poor. Just under one in 10 of those questioned expect to lay people off in the May to July period, while 21 per cent are seriously considering doing so.

This means that close to one-third are either planning to cut jobs or are considering doing so.

Retail Ireland director Torlach Denihan said that the survey shows an overall improvement in sentiment in the business, but added that the survey was completed before the euro-zone crisis had fully unfolded.

The group undertook the survey to assess the situation in the sector following recent figures showing an increase in retail sales.

While the numbers, published by the Central Statistics Office, showed that volumes were up, the actual value of sales were well below the levels reached last year.

“Prices to the public have been cut substantially and every element in the retail supply chain has made a major contribution to this, with the exception of landlords,” Mr Denihan said.

“They locked in massive and unsustainable rents during the property boom. Every landlord should reduce rents on a voluntary basis,” he added.