Future of SME retail sector 'bleak', warns ISME

The long-term future of the retail sector for SME traders within Ireland is "bleak" according to an industry group after the value of November sales dropped.
 
The Irish Small and Medium Enterprises Association (ISME), which represents the nation’s SMEs, has called for a strategy group to be established in order to give Irish retailers an opportunity to survive.
 
It predicts further job losses within the retail sector despite a gradual improvement in the wider national economy.
 
The Central Statistics Office (CSO) confirmed this week that the value of retail sales in November 2013 were 0.3 per cent lower despite an unchanged volume of sales at the tills.
 
Mark Fielding, head of ISME, said the body’s trends survey for Q4 2013 uncovered "worrying results" in relation to future employment indicators for retailers, with nine per cent of respondents confirming they would be reducing their workforce in 2014.
 
Mr Fielding believes the government is "idly standing by" whilst the retail sector continues to flounder and called for a long-awaited retail strategy group to be formed to tackle the growing problems SME traders are facing.
 
The CSO showed that retail sectors showing the biggest declines were books, newspapers and stationery, down 3.2 per cent, while motor vehicles were down 2.5 per cent and food, beverages and tobacco were down 1.8 per cent.
 
Alan McQuaid, economist at Merrion Stockbrokers, said: "Although consumer sentiment picked up in the most recent official survey, households are still very nervous about the economic climate and are more willing to save than spend until there is greater clarity about the outlook going forward."

Date published 14 Jan 2014 | Last updated 14 Jan 2014