Retail sales show renewed resilience in lockdown Ireland

DUBLIN: Irish retail sales jumped 13.9% month-on-month in February, even though the country remained under strict lockdown, and were only 3.2% lower compared with the same period a year ago when the economy was fully open, data showed on Monday.

The government sought to slow a massive spike in COVID-19 cases in late December by shutting down all but essential retail, most building sites and the entire hospitality sector, leading to a 15% year-on-year fall in retail sales in January.

The much lower annual drop in February suggested consumers began behaving in a manner similar to the second, less severe shutdown last November, rather than the more damaging initial lockdown a year ago.

Retail sales fell by 4% year-on-year in November compared to record falls of 44% and 25% in April and May.

"Similar to what we would have seen in the second lockdown relative to the first, consumers are adapting to life under lockdown," said Dermot O'Leary, chief economist at Goodbody Stockbrokers.

"It's obviously still down year-on-year but in the context of the lockdown, it's probably not that bad a result."

O'Leary said a shift in spending showed the strength of the underlying Irish economy, that when consumers were unable to shop in one retail outlet, they spent their money elsewhere.

As a result, electrical goods rose 34% on the year, hardware, paints and glass were up 26% and food, beverages and tobacco increased by 24% while there was a 91% collapse in bar sales, a 45% decline in department stores and 21% drop in fuel.

Electrical, homewares and do-it-yourself (DIY) products were also responsible for the largest monthly increases, even as most stores were limited to online and delivery sales for a second straight month.

The proportion of retail sales transacted online from Irish registered companies increased to 13% in February from 3.5% a year earlier, the Central Statistics Office said.

The government is set to only slightly ease the tough nationwide restrictions from next week, with non-essential retail likely to remain closed until at least mid-May.