Retail sales to rise in December

Struggling retailers got a boost in December, with sales set to show their first year-on-year increase in four years, a new report said.

Retail Excellence Ireland (REI) said sales rose by 0.68 per cent in December, the first time they have risen since March 2008.

Last year’s Christmas shopping figures were hit by adverse weather, with heavy snowfall hindering travel for weeks and encouraging consumers to stay local.

REI said that while the rise in like for like sales in December was welcome, it was also slightly disappointing when last year’s weather difficulties were taken into account.

“Overall Christmas 2011 has been a challenging trading period to date,” the report said. “While footfall is up, a function of adverse weather condition in December 2010, shoppers remain cautious, are buying down and shopping around.”

Shopping centres have been the biggest beneficiaries of the upturn in sales, with customers venturing further to shop in 2011. Free parking and a stronger mix of stores was also a major factor in luring people out of the cities.

However, regional town centres and high streets have seen the opposite effect as they struggle to match the lift in sales seen in December 2010.

Recent shopping trends saw customers opt for function over fashion, as consumers turned cautious. REI also noted that fewer Christmas parties and celebrations had hit footwear and fashion sales.

Retailers are also being affected by lower prices, with increased competition, pre-Christmas promotions and weaker consumer sentiment leading to the lowest prices in more than 10 years

Shoppers look set to take advantage of the upcoming sales, with REI predicting consumers will hold off on buying larger items until the sale period begins after Christmas.

“The post Christmas sales period should prove be one of the busiest ever due to exceptional customer value and the postponement of non-gift spending – customer have never had it this good,” the report said.