A STRONG start to the winter sales will not be enough to save many shops from going out of business in the new year, an umbrella group representing thousands of retailers has warned.
David Fitzsimons, chief executive of the industry representative body Retail Excellence Ireland, welcomed the positive start to the sales this year – but he reiterated his pre-Christmas prediction that there would be some major casualties in the sector in the new year.
He was speaking as the winter sales season began in earnest across the country with retailers who had held off on opening on St Stephen’s Day joining the fray yesterday.
An estimated 700,000 shoppers were on high streets up and down the country and spent about €120 million throughout the day yesterday.
Retail experts have predicted that this season’s winter sales will be among the busiest in recent times as retailers try to convince consumers to spend money by offering higher than usual discounts.
“There has undoubtedly been a good start across the country but that won’t make a difference to some of the retailers who are in difficulty,” Mr Fitzsimons said.
“At best it might buy them a few extra weeks,” he continued. “The good weather has really helped and some of the deep discounting on the part of some shops has definitely brought people in and there is exceptional value to be had.”
However, he said an oversupply of stock in some sectors, weak consumer sentiment and an absence of support from the Government in the run-up to Christmas had presented an impossible challenge.
“December 2011 will be up on last year, there is no doubt about that, but last year was very bad so it is a weak comparison. A better comparison is with 2009, and I think we will be slightly down on that year.”
Shaw’s department store, which has 15 branches almost nationwide, started its winter sale yesterday and early indications were that it was going well.
“There has been a good number of people in all our stores all morning,” spokesman Michael Brody said.
“We are happy enough with December as a whole, it has been a glimmer of light and has left us smiling.”
Northern Ireland’s largest shopping centre, Victoria Square in Belfast, recorded its busiest St Stephen’s Day and its busiest week ever.
On the day the sales began, some 52,628 people passed through the shopping centre, a 33 per cent increase on 2010 footfall levels and a similar increase on 2009.
Anthony Ryan of Ryans of Galway said business was good and footfall on Shop St was heavy yesterday. He said menswear and knitwear had done particularly well on the first day of the sales. “I think for December we will be marginally ahead of last year. The jump in sales might not be massive but in the current climate any increase is to be welcomed.”
