December Budget Shrinking Retail Sales by Over 7% Annually

December budget shrinking retail sales by over 7% annually, Timing badly affecting consumer confidence and Christmas sales, Alliance of retailers formed representing 17,656 stores and 200,511 workers.

The publication of the Budget each December is badly damaging retail sales according to research from a new coalition of Irish retail industry bodies, the National Retail Industry Alliance.

The National Retail Industry Alliance represents over 17,656 retail stores throughoutIreland, employing over 200,511 people. It is made up of the Associated of Craft Butchers of Ireland, Booksellers Association, Convenience Stores and Newsagents Association, Independent Shoe Retailers Association, Independent Sports Retailers Alliance, Irish Association of Health Stores, Irish Hardware and Building Materials Association, Irish Pharmacy Union, Irish Small and Medium Enterprises Association, National Off-licence Association, Retail Excellence Ireland and Retail Jewellers of Ireland.

The Alliance’s survey was responded to by 208 retail companies throughoutIreland, who operate 824 stores and employ 11,200 workers. The survey found that:

88% of these retailers reported that the scheduling of the Budget in December is negatively impacting on consumer sentiment and Christmas trading volumes.

The majority, 51%, report that the December Budget is causing a decline of over 7% in sales volumes.

A further 39% say the December Budget is causing a decline of between 4-7% in sales volumes

A National Retail Industry Alliance spokesperson commented: “The timing of the Budget in December is having a very negative effect on the retail industry. Equally damaging are the weeks of speculation preceding the Budget. Both are harming consumer sentiment during the Christmas trading period, the busiest time of the year for Irish retailers.”

“As a result, annual sales volumes are being reduced by over 7%. This is causing retail jobs losses, putting many retailers in a precarious position and others out of business. The retail industry employs over 200,000 inIreland. It is time that this Government listened to retailers recommendations in relation to the measures needed to help stop the massive jobs loss affecting the sector. Since 2008, over 44,000 retail jobs have been lost.”

“We are calling on the Government to either announce all major budgetary changes in November or else to reschedule the Budget to February. Clear advance notice of major planned Budget changes, particularly those affecting consumer demand, should be given in October or early November. This would allow consumers adjust their spending habits in advance of December. Alternatively, by moving the Budget to February, consumer spending during the peak November-December period will no longer suffer from a post-Budget dip.”

Source: ihbma - December Budget Shrinking Retail Sales by Over 7% Annually

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