Strong sales needed for retailers to hit annual targets
Strong post-Christmas trade will be needed for retail to meet projected growth figures for the year, according to the Ibec group that represents the sector.
Retail Ireland said the next few days would be crucial in determining if Christmas 2018 would meet earlier positive expectations.
It had indicated a rise in consumer spending in the region of 3% over the Christmas period, which would boost sales by over €150m this month.
However, Retail Ireland said the feedback it has received from members suggests a strong post-Christmas sales performance will be needed to meet those expectations.
Retail Ireland members said that there was some intense competition in the grocery sector, with supermarkets engaging in “deep discounting” to attract consumers, while extended Black Friday sales have distorted trade.
The group’s members also said the unseasonably mild weather has heavily hit fashion and footwear sales, and that retailers on the border are under pressure as shoppers cross into Northern Ireland to take advantage of sterling’s weak performance against the euro amid Brexit uncertainty.
The online sector in Ireland is set to achieve record sales, Retail Ireland said.
Thomas Burke, the director of Retail Ireland, said that 2018 has been “an up-and-down year” for Irish retail and one characterised by “a series of peaks and troughs in trading”.
“The sector is still hopeful that growth targets can be realised, but trading conditions have been challenging,” said Mr Burke.
“Trade in the early part of the year was severely disrupted by heavy snowfall while conversely, the long, hot, dry, summer brought bumper sales for some categories of retail.
“It would appear that this trend has continued into the Christmas period where, despite growing levels of consumer disposable income and almost full employment, some categories of retail have found trading conditions tough.
“This inconsistency in trading levels has necessitated heavy price discounting and promotional activity in recent weeks, with pre-Christmas sales starting on Black Friday now seemingly the norm in the sector. Promotional activity will grow further as we enter the traditional post-Christmas sales period.
Retailers have also been impacted by bad weather as storms and inclement weather hit during vital shopping weekends in the run-up to Christmas Day itself.
Footfall on these weekends was down significantly on comparable weekends in previous years.
With strong double-digit growth expected, this is now the fastest growing channel for Irish retailers.
