RETAIL SALES declined by 17.3 per cent in January compared to the preceding month, according to new figures from the Central Statistics Office (CSO).
For the year to the end of January last, retail sales volumes were down by 4.8 per cent, or by 4.7 per cent if motor trades sales are excluded.
The majority of sectors showed year-on-year declines with retail sales in bars down 9.9 per cent, motor trades declining 4.5 per cent, clothing, footwear and textiles falling by 4.2 per cent and pharmaceutical, medical and cosmetic items down 2 per cent.
The “other retail sales” segment saw volumes fall by 11.7 per cent across the year under review.
The value of retail sales fell by 8.4 per cent over the 12-month period, and there was also a monthly decrease of 15.6 per cent from December 2009 to January 2010.
If motor trades sales are excluded, the annual fall in the value of retail sales was 8.3 per cent, and the monthly change was up 0.6 per cent.
Commenting on the retail figures, business group Ibec said they were “welcome indications of stabilisation in the economy”.
Ulster Bank economist Lynsey Clemenger said retail sales figures continued to be heavily skewed by motor trades, while core sales showed the consumer entered 2010 on a slightly firmer footing than before.
Alan McQuaid, chief economist at Bloxhams stockbrokers, said while there had been signs of improving consumer sentiment in recent months, the further erosion of disposable incomes and an increased tax burden would give little scope for increased demand in 2010.
Retail Ireland said the latest figures showed the sector was continuing to face “a very negative trading environment”.
Elsewhere, new Eurostat figures show retail sales fell by 0.3 per cent in both the euro zone and the EU27 in January .
During the month, the food, drinks and tobacco segment declined by 0.1 per cent in the euro zone when compared to December 2009, and by 0.3 per cent in the EU27.
The non-food sector dropped by 0.6 per cent and 0.4 per cent respectively over the same period.
