Retail sales rose by 1.4 per cent last month on the back of stronger sales in motor, bar and other retail sectors of the economy.
However, when the volatile volatile motor sector is excluded, there was a decrease of 1 per cent in sales for March, suggesting the sector is still not enjoying the fruits of recovery.
The underlying trend shows sales were up 9.2 per cent on an annual basis, but by 4.7 per cent when car sales are excluded.
The sectors with the largest month-on-month volume increases were motor trades, which rose 4.1 per cent, bars (4 per cent ), and other retail (2.6 per cent).
In contrast, the sectors with the largest monthly decreases were department stores, which fell 3.2 per cent, non-specialised stores (-2.4 per cent) and fuel (-1 per cent).
The numbers show there was an increase of 1.2 per cent in the value of retail sales in March when compared with the previous month and an annual increase of 5.7 per cent.
If motor trades are excluded, there was a monthly decrease of 0.9 per cent in the value of retail sales and an annual increase of 1.2 per cent, suggesting price discounting may still be a strong feature of the sector.
Retail Excellence Ireland (REI) said the figures showed sales had “softened” as three-month quarter progressed.
REI deputy chief executive Sean Murphy the annualised retail sales value figure, which are much more important in determining retailers’ capacity for any cost increases, increased by only 1.2 per cent when motor trades are excluded.
“This underlines why retailers remain extremely cautious about hiring new staff and very concerned regarding talk of any mandated wage increases in the absence of a stronger recuperation in the domestic economy,” he said.
Isme, the Irish Small and Medium Enterprise Association, expressed concern at the slow rate of increase and the continuing erosion of margins in the retail sales.
It warned Government “that its pre-occupation with the export based economy leaves the domestic sector to suffer unnecessarily”.
Chief executive Mark Fielding, “It is certainly true that building a buoyant economy will require strong exports but the domestic market remains slow-moving and needs a stimulus package.”
