Ibec: Households set to spend €2,800 each in shops this month

Irish households will spend an average of €2,800 in shops this December, about €940 more than any other month of this year, according to business lobby group Ibec.

The average spend is about 3.4 per cent higher than Christmas 2018 with consumer spending this month on track to top €4.9 billion, the research from Retail Ireland suggests. Retail Ireland is a unit of Ibec.

Separately, data from ecommerce platform eShopWorld shows that the boost in spending isn’t confined to bricks and mortar retailers. It found that orders on Black Friday were up 33 per cent year on year.

Retail Ireland’s research found that growth in the online sales channel is six times higher than that of traditional bricks and mortar outlets.

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The Central Bank of Ireland expects total e-commerce spending to exceed €21 billion before the year end.

Retail Ireland director Arnold Dillon said that although Brexit concerns weighed on consumer sentiment in recent months, this didn't translate into a fall in sales.

“With the risk of an imminent no-deal Brexit gone, Christmas 2019 looks set to deliver a strong performance for the retail sector,” he said. “Rising disposable incomes, record numbers at work and falling prices have all combined to give consumers greater spending power than ever before.”

The success this month follows a relatively steady year for retailers. Sales in the first 10 months of the year were up 2.8 per cent in value terms with volume up 5 per cent compared to the same period in 2018. However, consumer goods prices in the same period fell by 1.7 per cent.

“Retailers have reported strong trading over the recent fortnight, making up for a slower start in some categories. The spending power is there in the economy, but retailers are having to compete aggressively to attract consumers to their offering,” said Mr Dillon.

The survey noted that overall employment in the Irish economy grew by 45,000 in the year to the end of the September 2019. The total number employed is now in excess of 2.3 million.