Official figures show that spending by consumers rose slightly overall in November, but sales remained weak in many areas.
The Central Statistics Office said the volume of retail sales rose by 0.2% compared with October. But the figure excluding the motor sector showed a 0.2% drop. Economists watch this figure closely as the scrappage scheme has boosted car sales this year.
The figures were released as Retail Excellence Ireland warned that December 2010 will be the weakest period of trading in recent history.
It Is predicting an almost 7% drop in sales for December when compared with the same month last year.
December is traditionally one of the busiest times for retailers across the country, but this year many businesses are warning of a severe drop in sales, mainly due to the adverse weather conditions.
Retail Excellence Ireland, which represents 30% of all retailers, warns that the retail sector is likely to see a 6.7% reduction in sales this month when compared to December 2009.
Its latest survey says regional retailers have benefited this month, but at the expense of bigger shopping centres, with consumers refusing to venture far. Shoppers are also watching their cash flow.
The survey says there has been a big drop in credit card sales as customers spend what they have. Functional items are also proving most popular and shoppers are focusing on price rather than brand. Some retailers have now revised their Christmas opening hours and will trade on St. Stephen's Day - hoping the sales period will bring a post-Christmas lift.
Bars suffer biggest November sales drop
The CSO figures released this morning show that, compared with November last year, overall sales were up 0.9%, but excluding the motor sector, there was a drop of 0.9%.
A breakdown showed that sales in six of the 13 categories rose in November, including electrical goods and motors. But department store sales fell 1.2%, and furniture dropped 2.2%. Bar sales suffered the biggest fall of 4.6% and have now fallen by 11.4% over the last 12 months.
The value of sales, which takes prices into account, fell by 0.1% from October, giving a 1.1% annual drop. The retail sales figures are adjusted to take seasonal variations into account.
