In the face of towering interest rates and shrinking household budgets, consumers reduced expenditure on items such as automobiles, attire, and department store products in February, resulting in a dip in retail sales. Data released by the Central Statistics Office (CSO) highlights a 2% decrease in sales volume within the month, counterbalanced partly by an annualised growth rate of 1.1%.
The figures, discounting motor sales, reveal an unaltered monthly sales volume, which escalated by 0.7% on an annual scale. Retail metrics indicate the most significant monthly volume drops within the motor trades (down by 9%), department stores (declined by 7.1%) and the clothing, footwear, and textiles sector (discreased by 6.3%).
Conversely, bars witnessed a monthly volume upsurge of 11.8%, trailed by shops selling hardware, paints, and glass at 10.5%, and non-specialist businesses including supermarkets observing a minor 0.3% elevation.
Projections had hinted at a retail slump in response to the recent inflation jolt and ten interest rate increments by the European Central Bank (ECB). However, the fallout has been more subdued owing to robust employment figures and the utilisation of savings accumulated throughout the COVID-19 crisis.
CSO reports indicate a 0.7% February increase in the value of retail sales, which ascended 3% across the year leading up to February. Price fluxes may account for some of this year-on-year value augmentation.
February’s online retail sales constituted 4.9% of the total, purchased from Ireland-registered firms. This figure contrasts with January’s 5.7% and February 2023’s 5.2% online retail proportions.