Figures released by Experian, the  information services company, illustrates what it terms the "stark predicament" facing the Irish retail sector at present, with footfall figures for March 2009 down a massive 8% on the corresponding month last year. As retailers battle rising rents and spiralling operating costs, the national Footfall Index* figures show 4.2% less people visited shopping centres and city centre stores in the first quarter of this year, compared to the first three months of 2008.

Figures have been dropping consistently year on year for the last 12 months, however a year on year drop of 8% is very significant. Easter fell early last year, which led to an inflated figure for March 08; however the magnitude of the decrease is startling. Conversely, footfall figures for Northern Ireland show that shopper numbers there have increased 7% in March this year, compared with March 08. Northern Ireland is the only area of the UK which has seen consistent year on year footfall growth, and is bucking the trends seen in the Republic of Ireland and the United Kingdom where poor consumer sentiment has led to reduced shoppers and falling retail sales.

Mark Mullally, Property Services Manager, Experian said,"A footfall reduction of 8% is very significant and confirms that trading conditions for retailers around the country are very difficult in the current economic downturn. The increases in PRSI and income levies announced in last week's mini-budget means that people will have even less disposable income now, and will refocus their spending onto essentials items such as food and fuel. When you consider this decrease in spending power, along with the increased costs facing retailers, 2009 is shaping up to be a very difficult year for shopping centres and the high street."

"It is interesting to note that the Footfall Index in Northern Ireland is consistently increasing this year compared to last. There is no doubt that retailers in the North are benefiting from increased shopping traffic from the south, with consumers anxious to maximise on favourable VAT and exchange rates."

"Recent CSO retail sales figures, which reflect the drop in retail sales across the euro zone, confirm that the sector is facing a very challenging year ahead and it is imperative that retailers now attempt to adapt to this changed environment by exploring customer retention strategies and communicating with customers in an appropriate and targeted manner.”

*Experian says the Footfall Index is endorsed by the BCSC, the membership organisation that represents the retail property industry, and, as such, is regarded as representative of Irish shopping habits. The Footfall Index is a national benchmark of visitor numbers to shopping centres geographically spread throughout Ireland.