Retail sales for the month of December this year are expected to fall to a historic low of 6.7 per cent less than 2009 figures according to figures released by the industry today.
Retail Excellence Ireland (REI) said abject consumer sentiment, the IMF intervention and the Budget had led to the sector facing significant blows in trading this year and this was compounded by the continued adverse weather.
Primary shopping centres, retail parks and city centres have been hit especially hard.
REI chief executive David Fitzsimons said consumers are fearful of venturing out into the bad weather.
He said even with an increase in retail activity today and tomorrow and a bumper sales period from St Stephen’s Day the best case scenario is for December figures to be almost 7 per cent down on last year.
Mr Fitzsimons said of the 400 retailers he spoke to all were considering cost-cutting next year.
“Unfortunately that does mean jobs, and it’s a terrible message pre-Christmas, but that is a fact - there will be some cost rationalisation."
Mr Fitzsimons was optimistic that the economy would pick up by the second quarter of next year.
“I would hope by mid-2011, especially post-election, we will see some growth in our domestic economy and thus the industry which currently employs over 250,000 people will be in a position to start rehiring,” he added.
