Households in Ireland are expected to spend an average of €1,555 more on retail in December compared to other months, marking a 1% increase from last year, according to new data released by Retail Ireland, the Ibec group representing the retail sector.
The group forecasts total retail spending for the month of December to reach €8.9 billion, which is €3 billion higher than typical monthly spending. Retail Ireland attributes part of this growth to the additional €2 billion injected into the economy in November and December through Budget 2025, aimed at easing the cost of living.
“Black Friday’s later timing and poor weather earlier in the month led some consumers to delay their Christmas shopping, but recent trends have been more promising,” said Arnold Dillon, Director of Retail Ireland. Despite this, Dillon noted that consumer behavior remains cautious, with many still prioritizing value and focusing on fewer, larger purchases.
He added that while concerns about the cost of living are still influencing shopping habits, there are signs of improving consumer sentiment as the festive season progresses. Shoppers, he said, are still determined to experience the full Christmas shopping experience.
Retail Ireland anticipates that this positive trend in spending will continue into 2025, but Dillon acknowledged the challenges that retailers faced in 2024. “It’s been a tough year for retail, with improving sentiment, but not as much as expected,” he said. “Business costs have risen sharply, and although inflation has significantly decreased in recent months, the more favorable inflation outlook and strong employment haven’t fully translated into increased retail spending.”
Despite these challenges, Dillon expressed hope that easing cost-of-living concerns would help boost spending in 2025. Retail Ireland’s data reflects a mixed year, with a slight uptick in consumer confidence but lingering uncertainty around household budgets.
With Christmas spending expected to peak over the coming days, retailers are hoping that the favorable trends observed in recent weeks will continue, providing a much-needed boost to the sector as the year draws to a close.