Retail sales picked up in the year to February, rising 11 per cent as the motor trade, the food sector, and books and newspapers all showed increased volume.
The new data from the Central Statistics Office showed the motor trade made a strong contribution to the annual figure, with sales rising almost 22 per cent; stripping this out left the increase in all other sector at 7.1 per cent.
On a monthly basis, the volume of retail sales was up 0.3 per cent, led by increases in books and newspapers, which increased by 7.8 per cent. That was partly offset by a decline in the volume of sales in bars, where there was a 2.8 per cent decline, and a 2.4 per cent fall off in sales of electrical goods.
Merrion’s Alan McQuaid said there were postive trends to observe in the figures.
“Although retail sales remain erratic on a monthly basis, the underlying trend is positive,” he said. “While most attention was on cars last year and will be again in 2016, personal spending in other areas is picking up too and is becoming more broad-based. This can only be good news for retailers and employment prospects in the sector.”
Excluding the motor trade, sales rose by 0.2 per cent in february compared with January.
“Overall, today’s data point to a strong start to the year for the Irish consumer,” said Davy analyst David McNamara. “A flat March would leave retail sales ex-motors up 1.5 per cent quarter-on-quarter in Q1 and 7 per cent year on year.”
On a value basis, sales fell 0.3 per cent in the month and rose 8.7 per cent from one year earlier.
Excluding the motor trade, the value of sales fell 0.4 per cent in the month and rose 4.7 per cent year on year.
Goodbody economist Juliet Tenent said the figures showed deflation continued to be a feature. “That said, retailers are enjoying significant value increases,” she wrote in a note.
But ISME, the Irish Small & Medium Enterprises Association, has called for more emphasis on e-commerce and the prioritisation of the roll-out of world-class broadband to allow retailers to future-proof their business.
“Irish businesses are lagging behind in the digital revolution and many now face a difficult game of catch-up,” said ISME chief executive Mark Fielding . “The Online Trading Vouchers, launched as part of the National Digital Strategy, should potentially get more businesses online but the low number and alarmingly slow roll out of these has meant the scheme has been ineffective thus far. One of the main reasons for this, especially in rural areas, is the inadequate broadband service.”
