THE BUDGET has sparked a modest revival in retail fortunes with many leading shops reporting an improvement in spending in the run-up to Christmas.
Entering the last days of the festive shopping season, retailers say that while sales are down on last year, the drop is not as big as feared. Shoppers are out in force – finally – and while they are not spending as much as in previous years, the last fortnight has seen a surge in sales volumes.
Arnotts said December had proved better than expected and, though still down on last Christmas, trading was significantly better than the rest of the year.
“It’s much stronger than we anticipated and we’re very pleased with our performance so far this month,” said chief executive David Riddiford. “Whether it’s just people having a last spend before 2010 or a genuine upsurge in confidence, it’s too early to say.”
Mr Riddiford said the Budget had helped to boost consumer confidence by providing a sense of stability. While the 0.5 per cent cut in VAT from January would have only a marginal effect, sales in the first quarter of 2010 would show if a real recovery was under way.
Don Nugent, manager of the Dundrum Town Centre, said business was “non-stop” since the Budget. “Whether people liked it or not, there is an acceptance there and a realisation that they at least know where they’re at.”
He said an improvement had been noted across all areas, even menswear which had struggled during the year. A spokeswoman for BT said the two weeks of trading since the Budget had been brisk.
Dublin City Centre Business Association said the Christmas shopping season had begun in earnest and it expected most retailers to have done reasonably well. It said footfall in the city centre had increased 1.5 per cent a week since September, when the “bus gate” banning cars from College Green was removed in the evenings.
However, Retail Excellence Ireland (REI) said the Christmas sales season “hasn’t happened” for many shops, particularly at the luxury end. Chief executive David Fitzsimons said figures for the first half of December indicated a drop of 20-25 per cent in sales, on top of a similar fall last year. He acknowledged costs for business had dropped, although rent remained a big issue for many retailers.
A report by REI has found that some sectors are faring better than others. Mobile phones, toys, giftware and jewellery are holding steady, but electrical goods, men’s and women’s fashion and the pharmacy sector are struggling.
This year, for the first time in many stores, the sales begin on St Stephen’s Day. The Dundrum Town Centre, for example, will have at least 12 shops open on the day.
BT says its winter sale begins in Dublin and Cork at 10am on St Stephen’s Day and in Limerick and Galway the next day. The Arnotts sale will be opened by “a celebrity” at 10am on St Stephen’s Day.
