The volume of retail sales fell by 4.8% in January 2010 compared to January 2009, according to figures released by the Central Statistics Office today.
When December 2009 and January 2010 are compared, the fall was 17.3%.
Excluding motor sales, the volume of retail sales fell by 4.7% in January 2010 compared to January 2009.
Year-on-year motor sales fell by 4.5%, pharmaceutical and cosmetic sales fell by 2%, while clothing footwear and textiles sales dropped by 4.2%.
Sales in bars were almost 10% lower, and other retail sales fell by 11.7%.
The supermarkets sector was the only area to show a year-on-year increase, at 0.6%.
In value terms, retail sales fell by 8.4% in January 2010 compared to January 2009 and there was a monthly decrease of 15.6%.
Alan McQuaid, Economist at Bloxham Stockbrokers, said the fall in consumer spending last year reflected the impact of shrinking disposable incomes and much weaker consumer confidence. This prompted an increase in precautionary savings.
He said there have been signs of improving consumer sentiment in recent months which should provide some support for demand.
He added that the further erosion of disposable incomes coming from falling employment incomes and an increased tax burden will give little scope for increased consumer demand in 2010.
He also said that the prospect of higher mortgage interest rates, irrespective of what happens to official ECB rates, will act as a drag on overall personal expenditure.
