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Press Release

The REI Shopping Centre Productivity Review 2010
Retail sales decline evident again - survey

A new survey shows that second quarter retail sales figures failed to deliver the expected return to growth.

The Irish Retail Industry Performance Review for the second quarter, carried out by Retail Excellence Ireland, shows that the month-on-month sales decline actually started to rise again, reversing the trends seen in February and March.

The review says that like-for-like sales fell by 2.02% in April, 4.9% in May and 5.47% in June.

However, the decline in retail sales eased to 5% in the second quarter of the year compared to the same time last year.

'While it would be alarmist to describe the monthly pattern of rising decline as a 'double-dip', the figures prove that the market and the industry remain volatile,' commented Retail Excellence Ireland's CEO David Fitzsimons.

Today's review shows that jewellery was the strongest performing sector in the retail industry in the second quarter and the only one to eke out a growth figure of 0.07%.

Footwear sales rose by almost 3.5% in April and by 0.34% in May, but this was completely offset by a June drop of 12.6%.

Menswear continued to be the worst performing sector in terms of sales, reporting a more than 9% drop in the second quarter compared to the same time last year. This, however, was an improvement from the 12% fall in the first three months of the year.

The grocery sector also continued its decline, dropping by over 7%. But this again was an improvement from the decline of 11.6% in the first quarter of 2010.

Retail Excellence Ireland also says that the average transaction value continued to decline in the second quarter of the year. It is now €41.92 compared to €47.55 the same time last year, down 12%. Sales per square foot also declined in the latest three month period surveyed.

'The chance of growth in the retail industry in the second half of this year is now much less likely given these results,' commented David Fitzsimons.

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