Average household Christmas spend is forecast to hit €1,600 this year, according to Retail Ireland.
The figure – which is spending made in addition to households’ everyday expenses – would represent a 3% increase on the average spend recorded last year.
That would put it roughly in line with the rate of inflation.
“I do think it has been more of a resilient performance from the retail sector this year as opposed to one of significant growth,” said Arnold Dillon, director at Retail Ireland, which is part of Ibec. “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 Arnold said that some of that was down to concerns about the impact US tariffs would have on the Irish economy. As that appears to be less significant than had been feared, he hoped it might lead to an increase in spending next year.
Overall the Ibec group says that, when combined, household Christmas spending represents more than €9 billion extra going into the economy in December alone.
This, it said, highlighted the importance of the Christmas trading period for retailers, as well as other sectors like leisure and hospitality.
The Retail Ireland survey found that people’s shopping habits had remained stable year-on-year – with more than a third of adults waiting until December before making their main purchases.
It said last-minute shoppers were more likely to be men aged 55 and over, with a third doing so out of habit or tradition, and almost a quarter waiting until the last minute because they did not have much to buy.
“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 it said there were changes in other shopping habits – with the growth of working from home impacting on footfall in towns and cities, and contributing to the growth of online shopping.
The survey also found a growth in the number of shoppers who had done considerable research on their purchases.
“There has been a significant disruption in shopping patterns since Covid,” said Mr Dillon. “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.”
