Consumer confidence (as measured by the ESRI) has been on a positive track in Ireland for the past two years (albeit from an historically low point). This is good news for Irish retailers as Amárach Research analysis shows a strong correlation between the level of consumer confidence and the year-on-year trend in retail sales volumes (seasonally adjusted):
But not all retail sectors are equally influenced by consumer confidence. The table below ranks the historical correlation between consumer confidence and sales volumes in a range of retail sectors, ranked highest to lowest:
Those sectors at the top will gain most soonest from the continuing improvement in consumer confidence. But don’t worry if you are in one of the other sectors – the correlations with confidence may be weaker but they are nevertheless significant. Improving confidence is a tide that should raise most retailers’ boats…