Retailers Must Now 'Sell Twice As Much Product For Return'
Irish retailers need to sell twice as much product than in previous years 'to secure a return at a time of growing input costs', according to Retail Ireland in a statement it issued today (29 June).
The group cautioned against a 'widening gap between sales volume growth and sales value growth.'
This follows the recent publication of the May sales numbers released by the Central Statistics Office.
Director Thomas Burke, director, Retail Ireland stated: "Retail sales patterns in recent months have been erratic, but one consistent feature has been the disparity between the rate of growth in sales volumes and sales values.
"Retail sales values, excluding bars and car sales, increased by 4% in May when compared to the same period in 2016, whereas sales volumes rose by almost twice that amount in the same period, at 7.8%."
Burke said this is mainly due to the deep discounting which has become a feature of the Irish retail market in recent years.
He explained, "With prices now back at 2009 levels, consumers can avail of great value in store. But it means retailers now have to sell twice as much product than they did in previous years to secure the same return, which is significantly increasing their input costs."
© 2017 - Checkout Magazine by Donna Ahern