Furniture and homewares lead retail sales comeback

Homeware and furniture are leading the way, as the retail sector continues to increase sales, according to the latest industry data.

Average sales in the industry rose by almost 5 per cent in the second quarter to the end of June, according to new figures from lobby group Retail Excellence Ireland (REI).

Categories linked to Ireland’s burgeoning house market, however, are growing at a much faster rate. Furniture and flooring sales were up almost 12 per cent while garden centres were up close to 9 per cent, according to the data.

Almost all sectors of the industry recorded increases in REI’s retail industry sales review, which collates data from the till systems of 4,500 retail members.

Grocery sales were relatively flat, meanwhile, as intense competition among the big multiples coupled with low inflation kept a lid on revenue growth.

Grocery sales actually fell in May and June compared with the same months last year, according to the study, compiled in conjunction with Maples and GfK.

IT sales

disappoint IT and computing sales disappointed, down more than 15 per cent, with sales of tablets falling away as the market reached saturation. Sales of consumer electronic “brown goods”, such as televisions, also slipped by 5 per cent.

Nick Simon of GfK attributed the decline in brown goods sales partially to the fact that last year's comparative figures were for a football world cup year.

“The year after a world cup is never easy, given the sales that the event generates. Expectations are now focused on the second half of 2015, with the Rugby World Cup on the horizon,” he said.

Hot beverage sales, which are considered a crude economic barometer as workers often buy coffees on the go, were up more than 7 per cent as the employment market continued to brighten.

Luxury items

In a sign that shoppers are not just restricting spending to home items and are prepared to treat themselves with luxury items, jewellery sales were up more than 7 per cent.

On the fashion front, ladies sales were up more than 6 per cent, but menswear sales spiked by almost 14 per cent.

Pharmacy sales were up by a modest 3 per cent, while major home appliance sales increased by a similar margin.

The decline in IT sales was mostly due to a 27 per cent volume slump in media tablet sales, according to GfK. Desktop computers saw a decline of 7 per cent. Notebook sales were up 8 per cent, driven by an average cost reduction of €47 per unit.

Sales of small home appliances such as food preparation gadgets and irons grew by 16 per cent over the quarter.

David Fitzsimons, the chief executive of REI, described it as a "solid trading quarter". He said the good performances of home-dependent sectors were partly down to "the continued success of the home renovation scheme".