Retail sales continued to decline in April, falling 3.9 per cent compared to a year earlier, new data from the Central Statistics Office showed today.
On a monthly basis, sales were down 0.8 per cent compared to March.
The motor trade continued to play a large part in trends. Excluding vehicle sales from the figures saw the annual decrease deepen to 5 per cent, the weakest reading since December 2009, and 1 per cent month on month.
On a yearly basis, fuel, furniture and pharmaceuticals were among the categories that saw the sharpest decline. The volume of fuel sales was down almost 12 per cent, while furniture and lighting sales declined by 16.2 per cent. Pharmaceuticals, medical and cosmetic articles saw sales slump 7.4 per cent.
Gains were moderate, with clothing and footwear sales rising by 1.6 per cent compared to 2010, and deaprtment store sales increasing by 1.4 per cent. In all, only three categories showed any growth, while 10 contracted.
Goodbody said the data showed an "exceptionally difficult" consumer environment in Ireland, and indicated that car sales were beginning to weaken ahead of the end of the scrappage scheme.
"While car sales were able to pull overall sales higher over the last eighteen months given the relative size of the industry in overall sales, this trend is now likely to reverse," chief economist Dermot O'Leary said.
The overall value of sales was also hit during April, falling 3.5 per cent compared to a year earlier and 0.7 month on month. When the motor trade was excluded, the annual decrease was 2.4 per cent, while the monthly decrease measure 0.3 per cent.
Analysts said the continued decline in retail sales indicated that any growth in the economy this year would rely on exports.
"Today's decline in retail sales indicates that consumer spending remains weak going into the second quarter," Davy analyst Conall Mac Coille. "The contraction in retail sales is not necessarily surprising given the poor state of consumer confidence and the negative impact on real incomes from the fiscal adjustment.
Goodbody Stockbrokers' O'Leary said high fuel prices were altering consumer behaviour, resulting in less travelling ."This is backed up by the fact that while the value of motor fuel sales have remained effectively flat (-0.7 per cent) over the past twelve months, the volume of sales fell by 1 per cent, among the weakest retail spending categories," he said.
Meanwhile, business groups called for action to be taken to help support the struggling retail sector.
Chambers Ireland said talk of changes to Sunday premium payments and Joint Labour Committees was "a step in the right direction" but said more needed to happen at a local level.
"The continued drop in retail sales is of great concern. Both central Government and Local Authorities must work together to introduce measures to help retailers survive," chief executive Ian Talbot said.
Mr Talbot called for reduced local authority rates and charges, and for savings achieved from cost containment measures such as the Croke Park Agreement to be passed back to the hard-pressed business sector.
Ibec group Retail Ireland called for the abolition of the JLCs.
"The retail JLC is costing the sector approximately €30 million annually and is a cause of job losses," director Torlach Denihan said.
