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Retail sales fall by 5.8% in June - CSO

The sector with the largest volume increase in June was electrical goods, which rose by 2.2%
The sector with the largest volume increase in June was electrical goods, which rose by 2.2%

Retail sales volume fell by 5.8% last month, when compared with May – according to latest figures from the Central Statistics Office.

However, in the year to the end of June retail sales have risen by 5.3%.

Excluding motor sales, which would have the largest impact of any sector on the figures, the monthly drop for June was 1%.

During the month, the sectors with the largest volume increases were electrical goods (+2.2%); bars (+1.9%); and books, newspapers and stationery (+1.5%).

Whereas the areas that saw the biggest monthly falls were furniture and lighting (-13.7%); hardware, Paints & Glass (-8.7%); and motor trades (-4.2%).

With regard to the value of retail of sales, there was a 3.4% decrease between May and June, while there was a rise of 3.4% when compared with June 2015.

Once again, excluding motor trades, there was a decrease of 1.3% in the monthly value of retail sales and an annual increase of 2.5%.

Commenting on the figures, the Irish Small & Medium Enterprises Association has warned that the threat of increased wage costs is having the effect of slowing an already fragile recovery and acting as a brake on retail plans.

ISME CEO Mark Fielding said: "Retailers are increasingly concerned at a continued rising cost base and the development of unrealistic wage expectations.

"Should we lose our competitive edge, jobs will not be created.

"Adding to the industry's challenges is a proliferation of discounts, which make it tougher for retailers to hold margins or record year-on-year sales increases."