The latest CSO retail sales numbers show that Ireland’s retail business environment remains challenging according to Retail Excellence Ireland. 

REI Deputy Chief Executive Sean Murphy says that retailers remain extremely cautious about hiring new staff and are very concerned regarding talk of any mandated wage increases in the absence of a stronger recuperation in the domestic economy. 

Headline sales were up 1.4% in the month in volume terms in March, and were up 9.2% year-on-year. The average annual rise in the first quarter was 8.9%.
 
Excluding motor trades, sales were down 1.0% in the month but were 4.7% higher in the year in March, but lower than the annual rise of 5.1% recorded in February. 
 
The sectors with the largest monthly volume rises in March were Motor Trades (+4.1%); Bars (+4.0%) and Other Retail Sales (+2.6%). Meanwhile, the sectors with the largest monthly falls were Department Stores (-3.2%); Non-Specialised Stores (-2.4%) and Fuel (-1.0%).
 
According to Merrion Economics, "A key domestic driver of personal spending going forward will be the state of the labour market, and the signs are positive on this front as we’ve seen with the most recent official employment and Live Register data. This bodes well for this year, especially with Budget 2015 having delivered some income tax relief for hard-pressed workers and the Government’s Spring “Economic Statement” due this afternoon set to outline further tax cuts over the next few years."  
 
Meanwhile the ISME has claimed that retail not re-election must be the focus of Government. ISME CEO, Mark Fielding said, "There has been much talk in recent months about town centre revitalization, with an Oireachtas report published but Government seems disinterested in actually pursuing the recommendations made. The recovery is little more than a notional concept outside of Dublin at the moment and small business owners are waiting for Government to finally act."

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