Retail jobs at risk after pre-Xmas sales dip

By FIONA McGARRY JOB losses in Tuam's retail sector are likely in 2011, as retailers come to terms with the impact of a disappointing pre-Christmas trading period. Assessing the affects of two spells of arctic weather, the Budget and road closures as part of the Big Dig, the town's retailers have described the outlook for next year as gloomy. Several shopping initiatives have been pioneered in Tuam, including a local â€Ëœgift card', and while these have been very successful, many traders are reeling from the dint to December sales. Shop owners across North Galway are reporting lower than average trade in the lead-in to Christmas. While the adverse weather kept many shoppers closer to home and less inclined to make the hazardous trek to Galway and Dublin, the end-of-year trading period has been slack in Tuam with people spending less than in previous years. For most retailers, the volume of trade over the closing weeks of December provides a welcome boost to annual sales figures, but that's unlikely to be the case this year. Sarah Roarty, CEO of Tuam Chamber of Commerce, described the pressure on local businesses as 'horrendous'. She said that while many retailers would face tough decisions in 2011, people were beginning to realise the importance of shopping locally. 'Most retailers just need to put this Christmas behind them and see where they are at,' she told The Tuam Herald. 'There was no rates concession and without a doubt, that will increase pressure on business in 2011.' Ms Roarty said that initiatives such as the Tuam Gift Card were very well received and likely to grow in popularity next year. 'We sold around €10,000 worth of these and that's proof that people want to spend locally. People now realise that shopping locally equates to keeping people in jobs. It's vital to remember that.' Traders on the Dublin Road have had an added obstacle to contend with in the shape of the Big Dig, which was extended unexpectedly when sub-zero temperatures delayed the resurfacing and reopening of the road. John Feely told The Tuam Herald that the impact of the dig had a detrimental impact on pre-Christmas sales. 'We lost some of our most important trading days while the road was closed. Our pre-Christmas trading period traditionally begins on November 1, but with the ongoing recession, the weather, the dig and the Budget, sales were dramatically im­pacted,' Mr Feely said. 'Retailers are learning that they can no longer rely on the end-of-year trading period to provide a boost. We begin to plan in June for this period, other retailers begin even earlier. When the volume of sales doesn't materialise, we're left with serious issues.' Mr Feely said he feared that many retailers would have no option in 2011 but to cut expenditure, including staff costs. Business costs high 'Despite the adverse trading conditions, the cost of doing business remains very high. There has been no rates cut in Tuam and no concession to the business community. When the figures are analysed, many retailers will be forced to look at cutting costs. It's a very tough decision, but there will be retailers who won't have a choice, unfortunately.' Ms Roarty noted that the Big Dig had had an impact on trade, but said that the contractors Coffey Construction had done everything possible to limit the impact on business. 'The delay with the Dublin Road was weather-related and nobody's fault,' she said. 'We brought Galway Bay FM in to create a buzz in the area and get people out and about.' Across the country, December 2010 looks set to be the weakest period of trading in recent history. Retail Excellence Ireland, the group representing 8,000 stores, said this week that factors including 'IMF intervention, budget 2011, abject consumer sentiment, and the arrival of the adverse weather has decimated consumer activity and purchasing'. Meanwhile Retail Excellence Ireland has revealed that the end-of-year trading period was one of the worst ever experienced. According to the survey, the west had a generally poor trading period on the last weekend before Christmas â€â€ traditionally the height of the shopping season. However, between Monday, December 23 and Christmas Eve, shoppers in the west had decided to brave the elements and a slight increase in retail sales was experienced. The report also found that late night trading was 'decimated' over the pre-Christmas period, with shoppers aiming to get home as early as possible. The early onset of snow is also believed to have contributed directly to a big increase this year in online shopping â€â€ particularly by consumers in this area. According to the company which is tasked with rolling out the National Broadband Scheme (NBS), the vast majority of internet users in the western region opted to do at least some of their Christmas shopping online as sub-zero temperatures began to bite at the end of November. A survey by 3 Broadband revealed that more than 80 per cent of internet users surveyed in this region had decided to shop online over concerns that a prolonged cold spell would leave them house-bound. The fact that snow hit the west of the country first is reflected in the finding that internet users in other regions were less likely to shop online over November and December. The survey revealed that traditional book and record shops were most likely to be impacted by competition from online retailers. More than 40 per cent of those surveyed said they would be buying books online, while 35 per cent said they would buy DVDs and 30 per cent said they would purchase CDs over the internet.