Sales fever will follow end of big freeze

THE business community throughout the city and county are now committed to extending the New Year sales well into 2010 – with consumers set to reap the benefits of further discounts.

Normally the winter sales would peter out towards the end of January but they will still be in full swing during February and maybe even March as the retail sector try to compensate for a poor 2009 on the sales front.

The recession, followed by severe flooding, then the Budget and more recently the big freeze all conspired to provide grim tidings for the retail rector who are now determined to fight back.

While most businesses did well during the first few days of the post Christmas sales, the situation deteriorated as the cold snap intensified and road conditions deteriorated.

Retailers across the county say that sales have slumped by between 10% and 50% with those serving the construction trade – like hardware shops – being worst affected.

In Galway city, sales over the Christmas and New Year were down by around 10% across the board. There were some job losses and this mainly affected part time staff and those working on contract arrangements.

Michael Coyle, CEO of Galway Chamber of Commerce, said that the emphasis was now on providing value for customers and this was why the sales would effectively continue well into 2010.

“Some shops will be applying discounts on top of discounts in an effort to generate trade and in the long term hope of restoring consumer confidence.

“But even apart from the retail sector, the hospitality industry is also playing its part. It is cheaper to dine out in Galway now than it has been for many years”, Mr. Coyle said. He said that the job losses over the past couple of years coupled with the severe cuts in the Budget had resulted in consumers being more cautious about their spending.

Meanwhile, Ballinasloe is still trying to come to terms with the devastation caused by the end of year flooding which had a disastrous effect on the business sector.

But Damien Clarke, president of Ballinasloe Chamber of Commerce, is quietly optimistic that a recovery can be made although he described 2010 as a challenging year ahead.

He said that some businesses took a major hit because of the flooding and many still had not reopened. But he stressed that the traders were making a determined effort to attract shoppers to the town.

Mr. Clarke said that February sales were being planned by the businesses but expressed disappointment that Ballinasloe Town Council did not reduce the rates for commercial premises at this difficult time.