Q4 2014 Recorded Largest Quarterly Gain in Irish Retail Industry Since 2007

23rd January, 2015

REI publish Q4 2014 Retail Productivity Review

Retail Excellence Ireland has this morning (Friday 23/01/2015) released its Irish Retail Industry Sales Review for the fourth quarter from October 1st to December 31st 2014. The data, which has been collected with inputs from GfK Retail and Technology Ireland, details a number of positives for the Retail industry in Ireland.

Speaking this morning, Seán Murphy, Deputy CEO said “Quarter Four 2014 recorded an annualised like for like growth in sales of 4.22%, the largest quarterly gain recorded in the Irish Retail Industry since Quarter Two 2007. Most sectors recorded strong gains with the Jewellery sector being the outstanding performer, recording a 14.91% increase against Quarter Four 2013. Key drivers of spending increases in this category have been both Asian Tourists coming to Ireland in ever increasing numbers to buy our competitively priced luxury goods as well as growth in demand for fashion brands such as Michael Kors, Alex and Ani and Pandora. Luxury retail can be a major source of tourism spend in the future, if we can profile it correctly. A further reassuring development is the instance of growth in all fashion and footwear sectors. The worst performing sectors were Photo and Pharmacy.”

Key headlines include:

  • · Q4 2014 enjoyed like for like gains of 4.22%, the largest annualised quarterly increase since Q2 2007
  • · Jewellery is the star performer recording like for like quarterly gains of 14.91%
  • · The Pharmacy sector remains under significant pressure due to Government intervention. This sector recouped some of the losses thanks to a robust December however closures are likely in 2015
  • · Fashion sector performed well with Menswear being the most productive sector recording like for like gains of 8.81%
  • · Footwear increased by 4.68% following on a poor end to Quarter Three due to the unseasonal clement weather
  • · The Home Renovation Scheme continues to reap reward with Furniture & Flooring recording quarterly gains of 8.20%
  • · The Photo | Camera market continues to suffer and shrinks by a further 35.00% in Q4 2014

“While the Quarter proved productive, it is important to note that much of the sales gains were at the cost of margin, with November and specifically Black Friday witnessing aggressive discounting activity” he concluded.