Ibec group Retail Ireland’s latest quarterly monitor reveals that the volume of sales (5.1% growth) far outpaced the value of sales (2.3%) in the third quarter of the year, with many Irish retailers continuing to engage in the deep discounting of goods. The findings of the report are said to reflect the impact Brexit related concerns have had on retail sales in the country throughout the year.
Director of Retail Ireland, Thomas Burke, commented: “Since 2016, the issue of Brexit has been a constant concern for business and consumers alike. While the recently agreed extension of the UK’s planned exit from the EU to January 2020 has given some respite to the retail sector, this is only a momentary one as all eyes will once again be trained on the UK as the country goes to the polls on December 12th. We now have the prospect of Brexit uncertainty continuing over the most important trading period of the year, Christmas.”
Speaking more generally about the current landscape of the retail industry in Ireland, Burke said: “One constant in the Irish retail industry for some time now has been the trend for deep discounting. Regardless of the category it appears that Irish consumers, and by default Irish retailers, are now addicted to price promotion as a sales driver and generator.
“This continues to pose a challenge for the retail sector, one which is likely to be exacerbated in the coming weeks as we approach the landmark discounting periods of Cyber Monday and Black Friday. Consumers are ever increasingly seeking discounting and sales throughout the year not just confined to these two periods which have now become a main stay of the retail landscape in Ireland.”
The report shows that the performance of supermarkets & convenience stores had been strong in the quarter Q3 with year-on-year value up 4.6% and volumes increasing 5.3%. This growth was mainly driven by convenience stores and the discounters.
