Average household Christmas spending revealed
Average household Christmas spending is forecast to reach €1,600 this year, according to Retail Ireland, as the sector records what it describes as a resilient trading performance rather than one of strong growth.
The figure, which refers to spending in addition to households’ everyday expenses, would represent a 3% increase on last year’s average and broadly aligns with the current rate of inflation.
Retail Ireland director Arnold Dillon said the outlook reflected the pressures faced by both consumers and businesses over the past year.
“I do think it has been more of a resilient performance from the retail sector this year as opposed to one of significant growth,” he said.
“That maybe is reflective of some of the challenges that have been out there – we have obviously seen cost pressures being quite significant in the supply chain, but also the cost pressures on business.
“One of the key challenges has been consumer sentiment, which has been lagging over the last year or so – and really below historical levels.”
Mr Dillon said uncertainty around the potential impact of US tariffs on the Irish economy had weighed on confidence, although he noted that these concerns now appeared less significant than previously feared.
He said this could support stronger consumer spending next year.
When combined across households, Ibec estimates that Christmas-related spending will inject more than €9bn into the economy in December alone, underlining the importance of the festive trading period not only for retailers but also for sectors such as leisure and hospitality.
Retail Ireland’s survey found that shopping habits have remained broadly stable year-on-year, with more than a third of adults waiting until December to make their main Christmas purchases.
Last-minute shoppers were more likely to be men aged 55 and over, with a third saying they shop late out of habit or tradition and almost a quarter indicating they have relatively little to buy.
Mr Dillon said the final days before Christmas continued to deliver the strongest trading.
“Probably the last couple of days would have been the most significant and the largest trading days of the year,” he said. “I think a lot of people have taken this week off so we've seen a sort of bounce over the last couple of days.
“Still some really positive feedback coming back from members – and inevitably a lot of last minute shoppers today.”
However, the survey also highlighted changes in shopping behaviour, with working from home reducing footfall in towns and cities and contributing to the continued growth of online retail.
Retail Ireland also pointed to a rise in what it termed the “precision shopper”, with consumers conducting extensive research before buying.
“There has been a significant disruption in shopping patterns since Covid,” Mr Dillon said.
Arnold Dillon, Retail Ireland
“What we have seen this year which is somewhat interesting is there's a real growth in what people have dubbed the precision shopper.
“A lot of people doing a lot of research online, and for the first time we've seen a lot of people doing research using AI, and then going in and spending in the shops.
"So a really informed shopper arriving in with a very clear list of what they want to buy.”
