Belts tighten

One More Thing:It looks like it could be a tough Christmas for Irish retailers. Barely a day goes by without one of the large supermarket groups pushing glossy fliers through the letterbox highlighting their special offers - a recognition that shoppers are now more price conscious and that they have to work harder to earn a buck.

Even large tins of biscuits and boxes of chocolate - a staple in every Irish household at Christmas time - have been marked down in price. Anecdotal evidence in the trade suggests that business at Aldi and Lidl has picked up recently, another sign that value is king.

The splurge of recent years is over and record numbers of Irish are travelling to the US in search of a bargain.

Yesterday, Experian said the number of people visiting shopping centres and city stores in Ireland has declined this year. Footfall figures for the year to date are down 3.2 per cent on 2006 and Experian is predicting a quieter Christmas for shops in 2007.

This is in spite of June and July being bumper months for retailers, Experian said. "It may be as a result of ECB interest rates rise taking affect, or it may display a lack of consumer confidence," it said.

Consumer sentiment is at its lowest level for four years, according to the November IIB/ESRI index published yesterday. "The results show that the decline is due to a more negative perception by consumers of both their current environment and their economic expectations," said David Duffy of the ESRI.

It was bound to happen with oil prices soaring close to $100 a barrel, share prices on the floor, jobs cuts at high-profile companies like Waterford Crystal and C&C, and an expectation of a tough budget.

Joe and Josephine Average are tightening their belts.