The refusal of landlords to reduce rent costs is leading to significant job losses, according to the representative body for the retail sector.
A survey by Retail Excellence Ireland of 1,418 shops around the country found that reductions of between 3-4% were achieved over the past three years, but retail sales had decreased by 30%. The survey also revealed that over 50,000 jobs were lost in the last three years, with employment in the sector falling to 255,000.
The group's chief executive, David Fitzsimons, said the Government must act to address what he called "Celtic Tiger" era rent demands.
''This survey is clear proof that the vast majority of commercial landlords have no intention of adjusting rents and are desperately holding on to Celtic Tiger lease agreements,'' Mr Fitzsimons said.
He said what is most concerned is the fact that the new market entrants can command rents at rates 50% lower than legacy tenants, and so many long-established professional retailers are being forced out of business.
Retail Excellence Ireland said that Irish retail rents rose by 240% in the years from 2000 to 2007, while consumer prices increased by 30% during the same time.
''Irish retailers only want a level playing field and rents that are based on real market conditions. The retail industry is continuing to contract where sales have declined month on month now for over 45 months since the downturn began,' Mr Fitzsimons said.
