This Christmas season is on track to be the best for retailers since 2008, according to Ibec group Retail Ireland.
In spending projections released in advance of today’s (Thursday 8th October) Retail Ireland Summit 2015, the group anticipates the best festive performance for Irish retailers in seven years, boosted by the expected tax cuts in next week’s budget.
Retail Ireland expects core retail sales for December 2015 to reach €4.05 billion, up by 3.5% compared to the same period in 2014.
This new projection comes after a steady recovery over the year to date, following a torrid few crisis years, which saw collapsing sales, store closures and job losses.
Indications that Budget 2016 will put more money into the Irish public’s pockets look set to further boost already-improved consumer confidence even more.
Retail Ireland also says that consumer spending growth will top 3.1% in the full year of 2015 versus last year, out-performing its earlier estimates.
However, despite these positive figures, retail sales for this festive season are still expected to be 12.2% (representing €550 million) lower than 2007 levels, underlining the sector’s losses over the last decade.
Date for the first eight month of this year reveal steady growth across many retail categories. While a weaker euro
Retail Ireland now estimates that personal consumption expenditure on core retail goods across December 2015 will be an average of €2,450 per household, nearly €600 more spending per household than in any other month of the year.
Director of Retail Ireland Thomas Burke commented, "Positive trends during the year and a budget that will put money back into the economy create a positive backdrop as we enter the crucial Christmas trading period.”
Adding that its is vital to maximise the benefits of the recovering economy by making it more attractive for employers to take on new staff and reducing income tax, he warned that, “Any reduction should not be funded through increases in other taxes such as excise duties or VAT.”
© 2015 - Checkout Magazine by Jenny Whelan.