Dáil Éireann Debate, Thursday - 13 November 2025
35. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment if his Department has undertaken any recent analysis of the challenges and future prospects for the retail sector in Ireland; and if he will make a statement on the matter. [61548/25]
Amharc ar fhreagraWhile my Department has not undertaken any specific economic assessment focused solely on the challenges and prospects for the Irish retail sector in 2025, the Government is actively and continuously monitoring trends affecting the sector. This includes tracking company registration and liquidation data, as well as broader economic and sectoral indicators.
Between January and May 2025, there were 74 liquidations in the retail sector, a 45% increase compared to the same period in 2024. However, only a portion of these closures were due to insolvencies, as there were 51 solvent liquidations during this time. It is also important to note that this has not occurred in isolation. 276 new retail businesses were registered during the same period, meaning that there has been a net increase in the number of these firms.
According to the latest CSO data, employment in the sector has expanded, increasing from just under 320,000 in Q2 2024 to just under 327,000 in Q2 2025, an increase of just over 2%. The Retail Sales Index shows a 3.5% increase in sales volumes in September 2025 compared to the same month in 2024. Card spending has also risen, with figures from the Central Bank of Ireland indicating an increase from just under €3.6 billion in September 2024 to just over €3.8 billion in September 2025, or about 6%.
Input costs are also easing on average, with the CSO’s Wholesale Price Index showing a 2.6% decline in the 12 months to September 2025. However, there has been a slight decline in consumer confidence, as reflected in the Credit Union Consumer Sentiment Index, which dropped from 74.1 in October 2024 to 59.9 in October 2025.
The Government acknowledges the challenges facing SMEs and the measures we have implemented to date, demonstrate our commitment to supporting enterprise, protecting jobs, and fostering a competitive, sustainable business environment. In particular, a series of measures have recently been adopted to help minimise cost pressures for Irish firms. These include extending the timeline for the introduction of the Living Wage by three years (to 2029) and a halt to any further increases under the Statutory Sick Leave scheme.
Most recently, the Government has taken action to address business costs through the publication of the Action Plan on Competitiveness and Productivity, and the convening of the Cost of Business Advisory Forum, both of which are commitments in the Programme for Government. The focus of the Action Plan on Competitiveness and Productivity is on actions that can be taken to strengthen Ireland’s competitiveness and productivity which in turn will lead to improvements in our economic performance.
Complementary to the Action Plan, the Cost of Business Advisory Forum delivers on the commitment to support small business, enterprise, and industries across a number of sectors. The Forums’ key objective is to examine and identify the concerns of enterprise around the impact of the rising cost of doing business in Ireland. The Forums is scheduled to report to Government in q3 2026.
