Retailers across the State are reporting significant increases in sales as the Christmas shopping period draws towards a close. If the increases are officially confirmed it will be a record fourth-year of retail sales increases.

The main reason behind the performance, say store managers, is extra retail space and longer opening hours.

According to the Dublin Chamber of Commerce, Dublin retail sales have increased by between 7 and 10 per cent on Christmas 1996. The organisation estimates that about £600 million has been spent in Dublin retail outlets so far this Christmas.

"Our sales are up about 10 per cent on last year, with cosmetics, menswear and footwear doing particularly well," said the managing director of Brown Thomas, Mr Paul Kelly.

Mr Bill Kelly, spokesman for Arnotts, said sales in the recently expanded store were "significantly up this year" with children's wear and sporting and leisure goods recording strong growth.

He added that spending among young people was noticeably strong, with the Manchester United supporters shop, based at Arnotts, one of the most popular outlets.

In Cork, Mr Duncan Graham, vice-president of the city's business association and general manager of Marks & Spencer said most traders in the city seemed to be experiencing a minimum of 10 per cent increase in sales.

He said traffic congestion in Cork city meant some customers were deciding to shop at out-of-town shopping locations instead.

The Galway Chamber of Commerce said continuing low interest rates were the main reason behind an estimated 10 per cent increase in Christmas sales in the city. Galway and surrounding areas now have five shopping centres and all of these are reporting increased sales in the last few weeks.

However, not all retailers have expressed satisfaction with the Christmas trade. The general manager of Clerys, Mr Tom Rea said the Christmas shopping period this year was not "exactly the runaway success, some had predicted. We find people are very cautious. Nobody is doing anything wild," One source said the opening of new retail developments had hurt other established shopping centres. For example it is thought that the Square shopping centre, Tallaght has lost out to the new shopping centre at Blanchardstown.

Traffic congestion has not been a major factor in Dublin, according to Mr Declan Martin, of the Dublin Chamber of Commerce, who said that as all centres face congestion, there was no benefit going to one location above another.

Dublin now attracts an average of 288,000 shoppers a week throughout the year.