The first quarter was particularly strong for the retail industry, according to the latest review from Retail Excellence Ireland and Grant Thornton.
The measure of retail productivity was up 4.9% on the previous year, with the grocery sector performing particularly well.
However, it must be noted that grocery sales saw an artificial boost in the quarter due to Easter falling in March this year.
The review also showed that fashion traded well in the first quarter, particularly menswear.
Some categories, like furniture and flooring, were down in the three month period, reflecting the impact of the slow house building market, while digital camera sales continued to suffer due to mobile phone photography.
David Fitzsimons, CEO of Retail Excellence Ireland, noted that March 2016 was the second most productive month since June 2007.
Mr Fitzsimons said this was mainly due to the fact that Easter fell in March as opposed to April last year.
He also noted that hot beverage sales were also up indicating that people were out and about over the three month period, but this did not translate into the same uplift in other retail sectors.
"Whilst many sectors saw some uplift for the quarter the downward trajectory or sectors such as furniture and flooring points to the impact of a dysfunctional and inactive housing market," he added.
Damian Gleeson, Partner at Grant Thornton, said that while many retail sectors are returning to sustained growth, the housing market and related sectors urgently require leadership and direction in order to repair the damage of the previous eight years.
"This is both an urban issue and a regional issue," he stressed.
