Savills have today released a report which shows that the volume of sales in Ireland’s retail sector continues to rise. However, the consumer is still benefitting from price discounting.
The report analysed the various subsets of the CSO Retail Sales Index and found that, while the volume of sales is up in all categories, prices are falling in almost every area of retail except bars and newsagents.
Although prices are still falling, discounting is beginning to ease in many sectors. In particular electrical goods, furniture and fashion retailers are having to cut prices much less steeply than a year ago to drive sales.
Savills believe this suggests a gradual return of pricing power to retailers as the economy strengthens.
Director of Research at Savills, John McCartney said, "The fact that prices are continuing to fall does not imply that retailers’ viability is being squeezed –lower commodity prices, reduced overheads and efficiency gains have made it possible for shopkeepers to cut prices at the till.
"However, the fact that they have had to pass these gains on to the consumer confirms just how competitive the retail sector remains."