IBEC - Newsroom

Retail Ireland, the IBEC group that represents the Irish retail sector, today commented on the retail sales figures published by Central Statistics Office (CSO).

Director of Retail Ireland Torlach Denihan said: “Things continue to be very tough in the retail sector because sales by shops fell by 8.1% in volume terms in March by comparison with March last year. This is consistent with the 6.6% moving average fall in sales volumes for December-February.

"Retail sales fell by the largest annual drop ever recorded last year and the trend continues during 2009. Retailers are suffering more than anybody because of this. We project that 25,000 more retail staff will go on the Live Register this year because consumer spending will probably fall by about 9% due to the impact of the two budgets, cross border shopping and the recession generally.

“Action is required now. Government should:

· reduce VAT to 18% for a specific period to stimulate retail sales;

· proactively encourage a reduction in State controlled costs on the retail sector, such as commercial rates, waste disposal and electricity;

· reduce the excise levels on alcohol because alcohol is the single biggest motivation for cross border shopping trips.”