Steady but not spectacular - that was the view of Retail Ireland on sales growth in the retail sector in the second quarter of 2019.
Sales values grew by 2.4% in the second quarter, while sales volumes grew by 4.1% in the same period, according to the Retail Monitor, published by the Ibec group that represents the sector.
The major influencers of sales performance in this period were the relatively wet and cool summer weather, which is in contrast to the summer of 2018 when Ireland experienced hot and balmy conditions.
The other major trend emerging from the monitor is the impact of Brexit-related concerns on consumer sentiment and fears around economic overheating.
Thomas Burke, Director of Retail Ireland, said, "While, fortunately, there were no majorly disruptive weather events so far this year, it is the non-appearance of any meaningful warm spell of weather that has been the major influencer of retail sales so far this summer. As the country sizzled in the sustained spell of warm weather in 2018, retailers experienced a significant uptick in sales. This has not been matched in 2019 and many retail categories are struggling to replicate 2018's performance as a result."
The report also reflects the impact Brexit related concerns have had on retail sales in the first half of the year.
Mr Burke said that after a brief respite during late spring and early summer from almost saturation levels of Brexit coverage in the first quarter of the year, we are now again entering into a further period of intense Brexit debate ahead of the October 31 deadline. "The trajectory of consumer sentiment has matched this public concern with an initial recovery over the late spring and summer period now subsiding as consumers begin to reflect once more on how Brexit might impact their personal finances. This has led to a softening in sales and is a cause for concern as the sector looks toward its busiest period of the year."
Retail Ireland said the type of Brexit will likely shape ambitions for growth in the sector for the remainder of 2019 and 2020. "Our consumer is now hyper conscious of the negative impact a no deal Brexit could have on their personal finances and that means they are likely to react quickly to any sub optimum outcome. We too must plan for the worst but hope for the best."
