Savills Ireland: 'All Indicators' Pointing To Improvement in Retail Conditions
Published on Feb 5 2014 2:34 PM in Retail
A report from property consultancy Savills Ireland has said that 'all indicators' are pointing towards the first signs of a stabilisation in retail conditions since 2007.
Personal consumption expenditure, retail sales and VAT receipts have steadied and are showing improvement, Savills Ireland said.
Economist and Director of Research at Savills Ireland, Dr. John McCartney, commented: “Employment has risen by over 3% in the last year – a remarkable growth rate by international standards – and the private sector is creating almost 5,000 new jobs per month. This is feeding through to improved consumer confidence and is beginning to be seen at the tills.
"The consumer sentiment index has risen by over 60% in the last 12 months and is now at its highest point since June 2007. While consumers are undoubtedly still cautious, this does now appear to be contributing to stronger retail sales, with overall turnover up 1.6% in the year to November.”
Although overall conditions are recovering, Savills warns that it’s not consistent across all regions and store types. The firm noted that as disposable incomes are up to 20% higher in Dublin, there is an emergence of a two-tier market with most retail activity concentrating on prime shopping centres and high streets, whereas some of the vacancy rates in some provincial towns remain high.
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