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Retailers expecting strong Christmas sales

Businesses in the capital expecting best trade in eight years
Businesses in the capital expecting best trade in eight years

A new survey shows there is a sharp divide in Christmas shopping between Dublin and the rest of the country, with strong trade in the capital but weak business in provincial stores.

Retail Excellence Ireland predicts Christmas trade will be up by between 3% and 5% on last year, meaning the best Christmas for shops in eight years.

However, businesses outside Dublin still face challenging conditions.

REI, which represents more than 1,200 companies with 13,000 shops said provincial members are reporting weak footfall and what is described as underwhelming consumer activity.

The organisation said the coming days could make or break 2015 for many of its members, with rural stores hoping for a late boost from emigrants and others returning home for Christmas.

By contrast Dublin stores are performing well, with exceptionally strong trade in night-time shopping.

While bad recent bad weather has hit some businesses, it has been offset in part by online shopping which continues to grow in Ireland.

REI also reports a big increase in gift-card sales, after Budget 2016 allowed a doubling of the benefit-in-kind threshold to €500 before gifts become taxable.