Bar sales suffer fall of 5% as retail sector dissappoints in February

Warnings by publicans that their trade would take a hit at the start of 2004 are borne out by the latest sales figures - but …

Warnings by publicans that their trade would take a hit at the start of 2004 are borne out by the latest sales figures - but the slump had nothing to do with the smoking ban.

Bar sales fell 5 per cent in the first two months of 2004, when it was still legal for smokers to enjoy a pint and a cigarette at the same time.

Vintners say the decline, which has accelerated since last year, is in part a cyclical dip and in part a result of new Government duties on spirits.

Overall retail sales volumes were up 2.6 per cent in February of this year compared to February 2003.

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However they were down 0.4 per cent from January, according to the Central Statistics Office (CSO), following on from January's unexpected 1.7 per cent monthly decline.

The value of sales - a separate series which measures the total amount consumers spend - showed a yearly upturn of 3.3 per cent, and a 1.1 per cent fall for the month.

Meanwhile, motor sales rallied in February, up 2.1 per cent year on year.

However, Department stores fell 19 per cent, dropping back in the aftermath of the January sales.

Commentators said the annual figures were behind expectations, but cautioned against reading too much into the monthly changes.

"We had expected more of an acceleration in retail sales volumes early this year," said Mr Robbie Kelleher, head of research at Davy Stockbrokers.

"One cannot read too much into monthly volume movements for the retails sales index which have been implausible recently due to seasonal adjustment problems."

The biggest yearly slump last month was in electric goods, which declined 8.7 per cent by volume.

Hardware and paint were down too, by 2.3 per cent. Newspapers and stationery fell by 4 per cent and furniture and lights by 1.6 per cent.

Clothing showed the largest growth, up 8 per cent by volume; footwear and leather increased 7.4 per cent while pharmaceuticals, medical and cosmetic and beauty articles increased by 6 per cent.

Food sales held firm at 0.9 per cent growth and general retail sales were up 2.1 per cent.