Retail sales fell in the first three months of the year, according to the retail industry group Retail Excellence Ireland.
Sales have now been falling in the retail sector for 36 months in a row.
Figures showed that sales per square foot in the first quarter of the year fell agan to €122.16 from €133.78 in the last quarter of 2011.
Sales in Janaury were almost 5% below the same time in 2011, but there were encouraging signs in March, with sales up by 0.7%.
The best performing sectors included hot beverages and pharmacies, with both increasing sales levels in the first quarter of the year compared to the same time last year. The worst performing sectors were furniture and flooring with sales down almost 10% on last year.
Other weak sectors in the first quarter of 2012 included ladies fashion and menswear, down 4.04% and 4.22% respectively. Jewellery and gifts and homeware were also weaker with like for like sales down 3.6% and 3.9%.
Retail Excellence Ireland says the figures show that while consumers are active, they are cautious.
''March 2012 returned to like for like growth helped by a spell of good weather. The big ticket discretionary sectors remain in greatest distress,'' commented Retail Excellence Ireland's chief executive David Fitzsimons.
He said that while both the premium and value ends of the market are performing reasonably, the middle market remains highly competitive with further failure anticipated.
''The 2% VAT increase to 23% has made retailing difficult and makes it hard to achieve last year's targets. Constant negative media commentary surronding household charges and water charges is worsening consumer sentiment,' he added.
