Consumers should support Irish businesses to help create new jobs.
Sterling devaluation and sentiment impacting sales.
With the release of the CSO retail sales figures for October today (28th November), ISME, the Irish Small and Medium Enterprises Association, encourages Irish consumers to buy local and support indigenous SMEs when shopping for Christmas. The Association reminded consumers that buying goods produced, manufactured and sold locally is the easiest way to support the Irish economic recovery.
Retail sales figures for October show an annual increase of 4.1% in Volume and 2.2% in Value. When motor sales are excluded there was a 3.8% increase in Volume and 1.8% increase in Value in the year. The monthly figures show a decrease of 0.3% in Volume, and 0.4% in Value.
ISME, CEO, Neil McDonnell said, “Irish consumers need to support retailers and local businesses. The devaluation of sterling is having an impact on sales and on consumer sentiment. With cross-border shopping on the increase and consumer sentiment at a 20 month low, Irish consumers need to get behind and support Irish businesses. The continued monthly decline in volume and value is a matter of concern”
The main issues facing retailers are:
Very low margins, as evidenced by the CSO figures.
Negative cross border trade.
Excessive business costs such as insurance, rates, and development charges.
Insufficient bank credit availability for retail SMEs.
“When we buy indigenous goods, we support local businesses and create new jobs. It is important in the run up to the Christmas season that consumers buy local, in doing so they are supporting the home-grown economy.” concluded McDonnell.