A group representing the retail industry says sales fell at a faster rate in the third quarter of this year.
Retail Excellence Ireland said sales levels fell by an average of 6% during the third quarter compared with the same period last year.
This followed falls of 3% in the first quarter and just under 6% in the second quarter.
REI said the situation worsened as the quarter went on, with September sales dropping by almost 7% from the same month last year.
It said electrical goods, furniture and ladies' fashion were the worst performing sectors in the three months, falling at annual rates of 8.5%, 8% and 7.5% respectively.
For the second consecutive quarter, all sectors, from grocery to hardware to jewellery, recorded year-on-year sales falls.
REI said that even in the best-performing sector, grocery, sales were down 3.5%.
The group’s chief executive officer, David Fitzsimons, described Irish consumers as being "frozen with fear", resulting in increasing bank deposits and reduced spending.
"We hope that the Government is more aware of restoring domestic demand when finalising Budget 2012," he said.
Retail Ireland says €150m being lost on laundered fuel
Meanwhile, retailers have claimed that the laundering of fuel is costing the State at least €150m in lost tax revenue every year.
In a submission to Government, Retail Ireland said the sale of cheap diesel is seriously damaging public finances, funding criminality and harming the environment.
The group’s chairman, Topaz Retail director Frank Gleeson, said recent figures suggest at least 12% of all diesel sold in Ireland is illegal.
Retail Ireland, which is a part of IBEC, called for a crackdown on the illegal trade to tackle the problem, suggesting tax reform and extra resources for the gardaí and Revenue.
Their report recommends equalising the duty for agriculture and motor fuel to diminish the illegal trade, with a reclaim system introduced for agricultural fuel users.
It also suggests that a robust marker be added to agricultural gasoil so it can be easily detected by Revenue if it is being sold to motorists.
It said this problem of laundered fuel was not limited to border counties; with illegal fuel being discovered in counties Galway, Roscommon, Offaly and Dublin.
