Just how much does M&S love Ireland?

Consumers might be slowly coming out from their bunkers, but Ireland remains a slog for some of Britain’s biggest retailers.

Tesco reported this week that its Irish sales over Christmas fell 5.5 per cent, although its decline is slowing and at least it has a new turnaround plan.

But what about Marks & Spencer, which has 17 stores here after closing four in a recent restructuring? It has already implemented most of its turnaround plan, but on Thursday it reported a dire set of quarterly group trading figures.

It mostly held its ground on food sales but its “general merchandise”, mainly clothing sales, were down 5.4 per cent. Its trading update this week didn’t mention Ireland, but the international division, of which Ireland is part, recorded a sales dip of 5.8 per cent on a constant currency basis. On an actual currency basis, however, sales fell by 8.8 per cent, the statement reveals. The international division includes Asia, but you can bet your bottom cent the discrepancy between the constant and actual figures is accounted for by a weakening euro. The euro’s slide against sterling means the Irish operation will have to boost sales just to maintain its revenue contribution to the parent company. With quantitative easing now firmly on the agenda for Europe in 2015 as the European Central Bank battles deflation, the euro will weaken further and the task for the Irish operation of M&S will get harder.

M&S never breaks out its Irish sales, but its annual revenues here are reputed to be between €300 million and €350 million – only a tiny slice of its group revenues of £10.3 billion (€13.2 billion). Tesco’s Irish operation is comparatively much more significant to the group, and is its most important European market outside of Britain.