There has been a resurgence in retail sales, according to new figures published by Retail Excellence Ireland.
The figures show that sales in the three months to the end of September across 4,000 stores in Ireland topped €3.3bn, some 5.5% more than in the same period last year.
With the economy on an upward growth path it would seem retailers are benefiting.
Retail Excellence Ireland, which is the largest retail industry trade body, has said many different sectors have seen their sales grow.
Among the strongest performers were those in the hot beverage sector - always a good barometer of consumer demand - with sales of teas and coffee up over 13%.
Sales of men's wear rose by over 12%, a higher percentage jump than women's wear sales.
Another area where there was very strong growth was jewellery.
However, the strong competition in the grocery sector saw the value of sales in this area fall by just under 0.5%.
The retail sector in Ireland employs over 270,000 people and Retail Excellence Ireland warned that there are concerns about profit margins for the coming year.
Chief Executive of Retail Excellence Ireland David Fitzsimons has said despite the increase in consumer spending it will be difficult for some retailers to pay to increased new minimum wage.
Speaking on RTÉ`s Morning Ireland, Mr Fitzsimons said the 50 cent rise could potentially force some shops to close their doors.
He said retailers are already struggling with other costs, adding that rents and insurance costs are also a burden.
"It is going to be a difficulty and it's not just labour costs in the market," Mr Fitzsimons said.
"Insurance costs are gone up by 20%, while upward-only rents remain a real challenge for the industry.
"We've been speaking to some retailers this week, post-budget, who potentially will close some stores on the back of the 50 cent increase in the minimum wage," he added.
