January retail sales fall as cost of living crisis continues to bite

The volume of retail sales in January fell 0.3 per cent compared to the same month last year, suggesting the cost of living crisis is far from over.

Shops also saw sales dip 0.5 per cent compared with December, new data from the Central Statistics Office (CSO) shows, although this would have been expected following the pre-Christmas rush.

When motor trades are stripped out, the monthly volume of retail sales was down 1.5 per cent compared to December.

While the retail environment has been hit by inflation, consumer spending, linked to real wage growth, had been expected to drive domestic activity in the medium term.

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However, the value of retail sales was also down, falling 0.6 per cent in the month and 0.2 per cent in year.

Excluding motor trades, the value of retail sales fell 1.3 per cent in the month and 0.6 per cent on an annual basis.

The largest annual volume declines were recorded in electrical goods, which saw an 8.8 per cent decline.

There were also annual declines for books, newspapers and stationery (4.8 per cent); fuel (4.6 per cent); department stores (3.5 per cent); and pharmaceuticals, medical and cosmetics (2.3 per cent).

Sectors showing the highest annual volume growth were furniture and lighting (up 7 per cent); other retail sales (1.3 per cent); and clothing, footwear and textiles (0.7 per cent).

The proportion of online sales was 5.6 per cent in January and 6.1 per cent in December, compared with 5.7 per cent in January last year.

Excluding motor trades, the proportion of retail sales online was 7.3 per cent in January and 8 per cent in December, compared with 7.5 per cent in January 2024.

The largest volume decreases compared to December were recorded in pharmaceuticals, medical and cosmetic articles (8.6 per cent); department stores (5 per cent); electrical goods (4.4 per cent); hardware, paints and glass (3.5 per cent); and bars (2.7 per cent).

The sectors showing monthly volume increases were furniture and lighting (1 per cent); clothing, footwear and textiles (0.4 per cent); books, newspapers and stationery (0.4 per cent); and motor trades (0.3 per cent).