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Retailers expect record low sales

Retailers - some will trade on St Stephen's Day
Retailers - some will trade on St Stephen's Day

Retail Excellence Ireland is warning that this month will be the weakest December of trading in recent history.

It is predicting an almost 7% drop in sales for December when compared with the same month last year as a result of the adverse weather conditions.

However, regional retailers are benefiting as consumers stay local, according to a report by Retail Excellence Ireland.

It says that major shopping centres are losing out as customers refuse to venture far.

Shoppers are also being mindful of their credit flow and the survey says there has been a big drop in credit-card sales as customers spend what they have.

Functional items are also proving most popular and customers are focusing on price rather than brand.

Some retailers have now revised their Christmas opening hours and will trade on St Stephen's Day in the hope that the sales period will bring a post-Christmas lift.

Sales still weak in November

Official figures show that spending by consumers rose slightly overall in November, but sales remained weak in many areas.

The Central Statistics Office said the volume of retail sales rose by 0.2% compared with October. But the figure excluding the motor sector showed a 0.2% drop. Economists watch this figure closely as the scrappage scheme has boosted car sales this year.

Compared with November last year, overall sales were up 0.9%, but excluding the motor sector, there was a drop of 0.9%.

A breakdown showed that sales in six of the 13 categories rose in November, including electrical goods and motors. But department store sales fell 1.2%, and furniture dropped 2.2%. Bar sales suffered the biggest fall of 4.6% and have now fallen by 11.4% over the last 12 months.

The value of sales, which takes prices into account, fell by 0.1% from October, giving a 1.1% annual drop. The retail sales figures are adjusted to take seasonal variations into account.