New figures from the Central Statistics Office show consumers are buying less.
The annual volume of retail sales fell by 15% in July.
However the latest figures from the CSO show that sales rose by 0.2%, compared to June.
The motor trade is the worst affected in the annual figures - with a drop of 48% in the year.
The CSO has said this is partially explained by the increase in motor sales in July 2008 which coincided with the introduction of the new VRT system.
The only sector showing year on year volume increases in retail sales were department stores – up 0.2%, while non-specialised stores including supermarkets were down 3.8%, bars were down 9.7%, clothing footwear and textiles were down 9.4% and the household equipment was down 17.1%.
Meanwhile the value of annual retail sales fell by 19.2% in July but the value of sales increased by 1.6% over the month.