SHOPPERS continued their post-Christmas spending spree across much of the province yesterday but there were stern warnings that, nationally, 2012 is going to be a bleak year on the high street.
Even as consumers carried on their search for a bargain in shopping and town centres around Northern Ireland, a UK-wide report from leading retail research firm Verdict predicted those same shoppers are set to slash nearly £1 billion from spending on non-essential goods such as electrical items, furniture and carpets next year.
Centres such as The Quays in Newry, Enniskillen’s Erneside, Bow Street Mall in Lisburn and Fairhill in Ballymena, all reported a healthy turnout of shoppers as the third day of sales got under way.
“Footfall is up 28 per cent on last year and the car park has been full for the third day in a row,” confirmed Fionnuala McEldowney, marketing and commercial manager at Fairhill.
Even taking into account last year’s weather she said it was clear that people were out in large numbers.
Preparations for the new year are also likely to buoy sales over the next day or so, but the Verdict report reflects a general view that business will be harder in the following weeks.
Retail sales are expected to grow by just 1.2 per cent to £295.3bn in 2012 – their third slowest year of growth in the past four decades – spelling more pain for the sector.
Sales of groceries will grow by 3.3 per cent as consumers eat more meals at home to save money, but spending on non-food items is set to shrink by about 0.5 per cent as the change in attitudes “from extravagant to austere” continues.
That would mean retail non-food sales will have fallen by £9.5bn since the recession of 2008.
Electricals, furniture, floor coverings, DIY and gardening goods will be hardest hit, with sales down by about £900 million, and are unlikely to improve until mid-2013.
Clothing and footwear will grow by just 2.4 per cent, or £14 extra per person, as a result of higher prices, but the rise in youth unemployment will hit fashion retailers.
The report, compiled in conjunction with business analysis firm SAS, will add to fears that major retailers are in danger of collapsing in coming weeks amid unprecedented levels of price reductions.
It warns that the first three months of 2012 will be the most difficult period for retailers, as consumers tighten their spending after the expensive Christmas period.
Verdict retail analyst Maureen Hinton said: “Conditions will ease slightly with events such as Easter, the Diamond Jubilee and the Olympics improving consumer sentiment, but overall confidence will still be low.
“Real improvement and growth are only likely from October onwards when, as long as the weather is seasonably cold, consumer will be driven to buy seasonal essentials before the end of the winter retail season in December and get back into the Christmas spirit.”