Business

Political uncertainty casts heavy shadow on positive retail results

Shoppers were out in force again across Northern Ireland in December according to Springboard
Shoppers were out in force again across Northern Ireland in December according to Springboard Shoppers were out in force again across Northern Ireland in December according to Springboard

THE north's political impasse seem certain to cast a shadow over people's shopping patterns and push prices up in shops and supermarkets, a leading retailer analysis believes.

And in a withering assessment of the current deadlock, Northern Ireland Retail Consortium director Aodhán Connolly fears that not having proper leadership and a functioning Assembly to fight the region's corner on Brexit will have a disastrous impact on the local economy.

His comments came as Northern Ireland, for the second month running, saw the strongest footfall growth of any UK region.

The number of people out shopping up by 4.1 per cent on the previous December - significantly above the three-month average of 1.2 per cent and 12-month average of minus-0.6 per cent, analysis firm Springboard said.

And that growth in shopper numbers was consistent across the three measured destinations of high street, retail parks and shopping centres.

It was described by Connolly as "sparkling growth", underlining that retailers have listened to what consumers wanted, and shoppers in turn then voted with their feet and their cash.

But he cautioned: “However, the political developments of the past few days have cast a shadow over these positive results.

"With only two months to the triggering of Brexit’s Article 50, what we need now more than ever is strong political leadership.

"As the only part of the UK with a EU zone land border, the retail industry here and the hard pressed Northern Ireland consumer will be affected more than anywhere else."

He added: "Our households already have only around half of the discretionary income of our counterparts in GB, and that is why we need the Assembly government to make case for tariff free-trade to negotiators and to put consumers first in the forthcoming Brexit talks by ensuring their sights are firmly set on keeping shop prices low once the UK leaves the European Union.

“Currently we have no programme for government, nor do we have a budget. What the retail industry needs now is not only certainty but a strategic partnership to deliver, jobs, growth, investment and exports.

"With other administrations in UK beginning to consider a more coherent approach towards their domestic retail industry we need the Stormont government to do likewise - otherwise we are looking at falling behind our neighbours both to the east and the south.

“So our message is simple: our industry and the Northern Ireland consumer cannot afford this political instability to continue.”

Springboard's Diane Wehrle described the big rise in footfall in Northern Ireland "a positive fillip" for retailers.