Christmas cash boom from water refund and pay hikes
Busiest spree since Celtic Tiger Households to spend €2,600
WATER refunds and pay hikes are driving a Christmas boom that will see people splash the cash at a rate not seen since 2007.
Tills across the country are ringing as this year’s jobs and wage growth – and unexpected boosts from Irish Water refunds and tracker mortgage redress cheques – have put more cash into families’ wallets.
Consumer spending is expected to reach its highest level since 2007, according to Retail Ireland, the Ibec group that represents the sector.
The organisation’s director, Thomas Burke, said reports from shopkeepers pointed to spending being 2pc to 3pc ahead of Christmas last year, which was itself the biggest year for consumer spending at Christmas since 2007.
Irish households are expected to spend an average of €2,654 in shops this month. That is €870 more than in any other month this year.
Overall, Retail Ireland predicts an increase in total sales of more than €100m, with sales over the Christmas season expected to top €4.5bn, up from €4.4bn in 2016.
“Retailers are looking forward to the approaching Christmas period with renewed optimism. Rising disposable incomes, more people at work and falling prices will raise consumer spirits and enable greater spending power over the busy Christmas period,” Mr Burke said.
TILLS across the country are ringing at a pace not seen since the boom, with retailers expecting an extra €100m of sales this Christmas in the busiest festive shopping spree since 2007.
This year’s jobs and wage growth and unexpected boosts from Irish Water refunds and tracker mortgage redress cheques have put more cash into families’ wallets.
It’s resulted in consumer spending that’s expected to reach its highest level since 2007, according to Retail Ireland, the Ibec group that represents the sector.
The true scale of consumer spending won’t be known until after Christmas, but Retail Ireland director Thomas Burke told the Irish Independent reports from shopkeepers pointed to spending being 2pc to 3pc ahead of Christmas last year, which was itself the biggest year for consumer spending at Christmas since 2007.
Irish households are expected to spend an average of
€2,654 in shops this month. That is €870 more than in any other month this year.
Overall, the organisation predicts an increase in total sales of more than €100m, with sales over the Christmas season expected to top €4.5bn, up from
€4.4bn in 2016.
Figures
The figures are substantiated by data from the Central Statistics Office last month that showed that over a 12-month period, with the exclusion of the motor trade, there was a 6pc increase in overall sales.
“Retailers are looking forward to the approaching Christmas period with renewed optimism. Rising disposable incomes, more people at work, and falling prices will raise consumer spirits and enable greater spending power over the busy Christmas period,” Mr Burke said.
Michelle O’Sullivan, from Cork Chamber, said this year there was a “noticeable” increase in consumer spending due to the changing tide of the economic situation.
Ms O’Sullivan also said Cork City Council had extended its park-and-ride service to ferry shoppers in and out of the city.
In Sligo, there has been an increase in consumer spending across the board, said Aidan Doyle, chief executive of Sligo Chamber.
“It’s [spending] getting to 2007 activity, but we won’t know for definite until after Christmas,” Mr Doyle said.
However, online shopping continues to eat into the market here.
Retailers noted a greater number of Irish shoppers are now choosing to shop on foreign websites, a concern for Retail Excellence Ireland.
According to David Fitzsimons from the organisation there has been a “monumental shift” to online shopping this year, with €13.5bn spent online so far, the majority of the online spend going abroad.
Cash going out of the country is principally going to companies with UK websites as consumers take advantage of weakened sterling, especially on medium to high-end ticket items such as iPads and computers, he said.
Mr Fitzsimons expects online retail to be up around 30pc this year.