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The traditionally strong January sales season let retailers down this year, as the value of sales fell compared to last year despite the rise in VAT. Gareth Chaney/Photocall Ireland

Retail sales dip in January compared to last year

The value of retail sales was down by 3.7 per cent compared to December, but by 0.3 per cent compared to January 2011.

THE RETAIL TRADE is continuing to struggle as customers opt to hang onto their cash, the latest CSO figures have shown.

The Retail Sales Index, published this morning, shows that both the value and volume of sales fell in January 2012 when compared both to December 2011 (boosted by the Christmas shopping season) and January 2011.

The volume of sales was down by 3.7 per cent when compared to December, but by 0.8 per cent when compared to January 2011.

Similarly, the value of sales is down by 3.7 per cent from December, but down by a modest 0.3 per cent compared to the first month of last year.

January marked the first month of increase in VAT rates from 21 to 23 per cent, which would account for the slightly smaller drop in the value of transactions.

With January a traditionally strong month for New Year shoppers, however, the figures will be worrying for the sector.

The figures show that the retail sector remains largely in flux, with sales figures continually growing and contracting across 2011 as the Irish public wavered between confidence in the financial outlook and nerves about the effects of the government’s ongoing austerity drive.

Retail Ireland director Stephen Lynam said the VAT hike had probably encouraged consumers to buy in December instead of January, with the end result that the January sales were broadly shunned.

“The high cost of rents, rates, tax and labour are causing retailers real difficulties and depressing consumer demand. Action is needed on all these fronts, including a review of VAT returns at the end of next month,” Lynam said.

Retail Excellence Ireland’s chief executive David Fitzsimons said retail sales had been in consistent decline since 2008, and that the January figures showed that “another very challenging year, with business closure and additional redundancies, is unavoidable”.

“Following the launch of the Action Plan for Jobs, we would urge local authorities and Government departments to speedily implement the recommendation that business costs are reduced,” he said.

The Irish Small and Medium Enterprises Association demanded that the government takes a lead to tackle “the crisis in the retail trade”.

Chief executive Mark Fielding said retail was responsible for over 10 per cent of GDP and 15 per cent of all jobs, but that the government’s jobs plan had “skated over the sector with barely a mention”.

Read: Consumer sentiment picks up after December dip – but shoppers still gloomy

More: Cost of living fell by 0.5 per cent in January

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11 Comments
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    Mute Rob Henderson Jr
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    Apr 8th 2013, 2:36 PM

    This type of crime is becoming wide spread .

    659
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    Mute Paul Doyle
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    Apr 8th 2013, 3:34 PM

    That’s nuts!

    192
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    Mute Jeff Kennedy
    Favourite Jeff Kennedy
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    Apr 8th 2013, 9:59 PM

    Chocolate spread,coffee and red bull ,its a student shopping basket minus the bread and vodka :)

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    Mute Ashley Fleming
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    Apr 9th 2013, 12:41 PM

    yeah hazelnuts lol

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    Mute Louise Coffey
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    Apr 8th 2013, 3:02 PM

    Someone, somewhere has a swimming pool filled with nutella and is fulfilling a life long dream!

    237
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    Mute Pierce2020
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    Apr 8th 2013, 2:33 PM

    That’s nuts

    224
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    Mute Pierce2020
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    Apr 8th 2013, 2:34 PM

    Hazel-nuts

    47
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    Mute John Murphy
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    Apr 8th 2013, 4:14 PM

    Should have quit while you were ahead.

    147
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    Mute Keith Fay
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    Apr 8th 2013, 6:01 PM

    yolande visser stole them

    7
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    Mute Continent Simian
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    Apr 8th 2013, 2:39 PM

    Owners of pancake shops will be sleeping with one eye open tonight.

    168
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    Mute Continent Simian
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    Apr 8th 2013, 3:25 PM

    Gah! Red thumbs from the “lemon & sugar” purists, no doubt. They’re a militant lot.

    173
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    Mute Graham Mace
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    Apr 8th 2013, 7:39 PM

    You are under surveillance by the Maple Syrup Mob!!

    27
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    Mute Mark Gaynor
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    Apr 8th 2013, 2:38 PM

    I reckon theyre gamers. Nutella, coffee and energy drinks. I’ll be wary of any Germans playing Modern Warfare or Battlefield on line;-)

    105
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    Mute Larry Sneeg
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    Apr 8th 2013, 2:41 PM

    Feckin squirrels,

    76
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    Mute RP McMurphy
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    Apr 8th 2013, 4:24 PM

    And Tayto just brought out the Choco-Tayto bar….where did the choc come from??? Very sus!

    72
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    Mute MrBuzzB
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    Apr 8th 2013, 2:39 PM

    Oompa Loompas put on protective notice at the Willie Wonka factory!

    57
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    Mute Glenn O'hAilpín
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    Apr 8th 2013, 2:46 PM

    Hilarious, those Germans have such a great sense of humour.

    46
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    Mute Tim O'Sullivan
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    Apr 8th 2013, 3:21 PM

    Did you hear about the guy who put his penis in a jar of Nutella?
    Doctors say he was F**king nuts!

    43
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    Mute Glenn O'hAilpín
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    Apr 8th 2013, 2:38 PM

    thats the second funniest news you guys have posted today. Your on a role keep it up.

    36
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    Mute Seamus Foskin
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    Apr 8th 2013, 2:46 PM

    police are searching local creches and playschool a gang of toddlers is thought to be behind the heist

    33
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    Mute john g mcgrath
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    Apr 8th 2013, 3:16 PM

    The police are spreading the search nationwide !!!

    26
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    Mute Hugo Sanchez
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    Apr 8th 2013, 6:25 PM

    Did anyone do a nut joke yet?

    23
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    Mute Genius
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    Apr 8th 2013, 2:41 PM

    Merkel is the nutella monster.

    22
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    Mute Jason Bourne
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    Apr 8th 2013, 4:25 PM

    Thata lousy on Nutella.

    9
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    Mute Fintan O HEifernain
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    Apr 8th 2013, 3:25 PM

    Someone’s been watching too much “Intermission”

    20
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    Mute Reddy_Bondwick
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    Apr 8th 2013, 2:41 PM

    Das est ein conundrum!

    20
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    Mute robert purfield
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    Apr 8th 2013, 4:03 PM

    Really hope the german police arent spread too thin investigating this and have some sweet success in their work

    17
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    Mute mammy
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    Apr 8th 2013, 7:44 PM

    Couldn’t give a crud to be honest I only read this story for the funny comments . Thanks for cheering me up

    14
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    Mute Martin O'b
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    Apr 8th 2013, 7:28 PM

    Nut, nutella’ a haon’ a do, a tri, a ………………

    11
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    Mute Dylan Prendergast
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    Apr 8th 2013, 4:46 PM

    IT VWAS ME

    11
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    Mute Mark Salmon
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    Apr 8th 2013, 5:13 PM

    To the conspiracy theorists, was there a squirrel on a grassy knoll.????

    9
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    Mute Adam Sheridan
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    Apr 8th 2013, 2:34 PM

    I’d say that was Crimer!!! @crimershow

    7
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    Mute BigChanntelle55
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    Apr 8th 2013, 7:17 PM

    I love nuts

    7
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    Mute Mandie Young
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    Apr 8th 2013, 3:16 PM

    Nnnnoooooooooo!!!!!

    7
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    Mute Liam Mc Meel
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    Apr 8th 2013, 3:22 PM

    There all NUTS if you as me

    5
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    Mute Conor Coady
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    Apr 8th 2013, 4:39 PM

    I believe Der looking for someone with a sweet tooth!

    5
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    Mute Martin Morad
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    Apr 8th 2013, 3:16 PM

    Hope they send it North Korea!

    5
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    Mute Liam Mc Meel
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    Apr 8th 2013, 3:21 PM

    There all NUTS if you ask me

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    Mute Shay Lawlor
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    Apr 8th 2013, 6:35 PM

    Can you report a comment for being bad twice??

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    Mute Catherine Crotty Brett
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    Apr 8th 2013, 3:33 PM

    Why. Numb nuts the lot of them

    4
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    Mute Liz (10) (^_^)
    Favourite Liz (10) (^_^)
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    Apr 8th 2013, 5:43 PM

    Nooooooooooo, not the Nutella :(

    4
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    Mute William Delaney
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    Apr 8th 2013, 3:19 PM

    Are they bucking nuts…….

    4
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    Mute Pat Murphy
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    Apr 8th 2013, 6:01 PM

    panda chocolate spread or Nutella ??????…….mmmmmm????

    4
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    Mute PerkyBeans
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    Apr 9th 2013, 6:47 AM

    I’m Nutella’n ya where it is..it’s all MINE!!!

    3
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    Mute Caitriona
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    Apr 8th 2013, 9:39 PM

    must of had a serious dose of the munchies….

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    Mute Paul Clancy
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    Apr 8th 2013, 10:16 PM

    Burp

    2
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    Mute Randy Fisher
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    Apr 8th 2013, 8:40 PM

    Getting high on red bull and nuts lol

    1
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    Mute John O'Neill
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    Apr 13th 2013, 12:08 PM

    Now that’s a case for the cops to get their teeth into…

    1
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