Ireland’s retail sector delivered “steady, if unspectacular growth” in the second quarter of 2019, with performance held back by a wet and cool start to the summer and Brexit-related concerns impacting consumer sentiment.
Data from Retail Ireland, the Ibec group that represents the sector in the country, showed that sales values grew by 2.4%, while sales volumes rose 4.1% over the period.
Director of Retail Ireland, Thomas Burke commented: “While, fortunately, there were no majorly disruptive weather events so far this year, it is the non-appearance of any meaningful warm spell of weather that has been the major influencer of retail sales so far this summer. As the country sizzled in the sustained spell of warm weather in 2018, retailers experienced a significant uptick in sales. This has not been matched in 2019 and many retail categories are struggling to replicate 2018’s performance as a result.”
The Retail Monitor report also highlighted the impact Brexit-related concerns have had on retail sales in the first half of the year.
Burke said: “After a brief respite during late spring and early summer from almost saturation levels of Brexit coverage in the first quarter of the year, we are now again entering into a further period of intense Brexit debate ahead of the October 31st deadline. The trajectory of consumer sentiment has matched this public concern with an initial recovery over the late spring and summer period now subsiding as consumers begin to reflect once more on how Brexit might impact their personal finances. This has led to a softening in sales and is a cause for concern as the sector looks toward its busiest period of the year.”
In looking forward to the rest of the year, he concluded: “There is no doubt that choppy waters lie ahead for the retail sector. The type of Brexit we experience will likely shape our ambitions for growth in the sector for the remainder of 2019 and 2020. Our consumer is now hyper conscious of the negative impact a no deal Brexit could have on their personal finances and that means they are likely to react quickly to any sub optimum outcome. We too must plan for the worst but hope for the best.”
