Deflationary Pressure Eases For Grocery Retailers, Report Shows
Published on Aug 9 2017 10:15 AM
Retail sales figures for supermarkets and convenience stores is the early signs that deflationary pressures are easing, according to the latest Retail Monitor, published today by Retail Ireland.
The Ibec group that represents the retail sector, outlined that this is the first time this category of retail has not seen volume growth lead value growth in 12 months or more.
“While retail sales values grew by 3.7% in the first half of 2017 compared to the same period in 2016, retailers remain cautious and uncertain about what the second half of the year will bring in terms of trading performance." Thomas Burke, director, Retail Ireland said.
"With prices now below 2008 levels, retailers remain addicted to deep discounting as a means of driving footfall and additional spend."
Looking ahead, the group suggested that 2018 budget should 'support the modernisation of the retail sector: Retailers require support to establish a meaningful presence online and allow them to compete for the 75% of total online trade currently done with firms outside of the State.'
In this post-Brexit era, control of costs and a focus on our competitiveness will be essential to sustain the recovery in Irish retail, and avoid placing the sector at a major competitive disadvantage compared to counterparts in Northern Ireland or pure play online-only retailers based in the UK”, Mr Burke said.
The publication also said that the upcoming budget should continue to ease the tax burden on Irish consumers and retailers.
It recommended, 'retaining the 9% VAT rate which has supported certain retail categories, such as food service, newspaper sales and hairdressing and grow disposable consumer income through reductions in income tax.'
© 2017 - Checkout Magazine by Donna Ahern