Retail Monitor, a quarterly survey produced by the Irish Business and Employers Confederation (IBEC), shows that growth in the retail sector is stalling as it “lags behind [the] general recovery”.

When measured by value, the report reveals that sales are up by a meagre 0.9 percent when compared to the same period last year.

According to the Retail Ireland division of the employers’ lobby group, the report’s findings showcase a “concerning lack of real growth”.

“The report highlights that certain categories such as furniture and homewares are outperforming the general retail sector largely as a result of the release of pent-up demand, while others including supermarkets, books, news and stationery continue to struggle,” said Tom Burke, Retail Ireland director.

“Value for money is still the key determinant,” said Mr Burke, who said the weak euro had brought pressure on retailers.

“Retailers are [also] very concerned about proposed increases in other costs, specifically wage increases. With recovery in retail still fragile, Retail Ireland warns that any increased costs could further destabilise a sector which has endured a torrid last six years.”

Wage increases were also a cause of concern for the European Commission recently (as we reported here) as they warned it could lead to fewer jobs and a higher unemployment rate. If you are unemployed or searching for work make sure to submit your CV to Sales Placement and visit our Jobs Board.

Despite the slight increase in sales measured by value, the volume of sales are actually up by 5 percent, which suggests that retailers are heavily discounting. A weak Euro and the fierce growth in the supermarket sector, as outlined by Contract People here, is thought to be a major factor in this.

“Value for money is still the key determinant,” said Mr Burke. The global recession brought about a surge in growth for the likes of Aldi and Lidl.

“Retailers are [also] very concerned about proposed increases in other costs, specifically wage increases. With recovery in retail still fragile, Retail Ireland warns that any increased costs could further destabilise a sector which has endured a torrid last six years.”