Retailers say sales will continue to fall over the next three months, according to a survey by IBEC's Retail Ireland.
A third of those who took part in the survey rated the business climate as 'poor' or 'very poor'; half rated it as 'average', while just 18% said business was 'good'.
The outlook for jobs in the sector is also poor, with 10% of those questioned expecting to lay people off this summer. More employers in the retail sector say they are considering it.
However, 33% of respondents are more confident about their business than they were three months ago. 16% are less confident and 52% report similar levels of confidence.
While, the results of the survey showed an improvement in sentiment in the retail sector, IBEC cautioned that the survey was completed before developments over the last two weeks involving Greece and the euro zone.
'Prices to the public have been cut substantially and every element in the retail supply chain has made a major contribution to this, with the exception of landlords,' commented Retail Ireland director Torlach Denihan.
He urges landlords to reduce rents on a voluntary basis in the interest of lower prices for the consumer, saving retail jobs and helping the country regain lost competitiveness.
