Spending in bars drops significantly during peak summertime period
The Ahead The A Uping Calls Drop Among Es The Of Amid Hospitality Groups Repeated For 9% Rate Of Sector's Budget Sharp Reintroduction Vat
Spending in bars dropped significantly in July with the latest figures from the Central Statistics Office (CSO) showing a sharp fall in sales during the industry's peak summertime period.
In its latest retail sales index, the CSO found the volume of bar spending dropped by more than 16% annually, likely underpinned by bad weather during the key trading month. On a monthly basis, the volume of bar sales dropped by 13.5%.
The sharp drop comes amid repeated calls among hospitality groups for a reintroduction of the sector's 9% VAT rate ahead of the upcoming Budget.
Despite widespread support across the industry, the move has been deemed unlikely due to its estimated price tag of €535m.
Overall, the total volume of retail sales increased by 0.1% in the month and was up by 0.4% in the 12 months from July 2023. However, excluding motor trades, the CSO said the monthly sale volumes rose by 0.2% on both month-on-month and annually.
The largest monthly volume increases were recorded in clothing, footwear and textiles at 4.8%, pharmaceuticals, medical and cosmetic articles at 2.2%, furniture and lighting at 2.1%, and motor trades at 2%.
Meanwhile, sectors showing the highest monthly volume decreases were bars, falling by 13.5%, books, newspapers & stationery which dropped by 5.1%, and electrical goods, down 2.4%.
The proportion of retail sales transacted online from Irish registered companies was 4.7% in July 2024, compared with 4.9% in the previous month and 4.8% in July 2023.
The value of retail sales rose by 0.2% in the month and by 1.2% in the 12 months to July 2024, the CSO added.