Irish Families Set to Spend €1,600 This Christmas Despite Economic Pressures

Irish households are expected to spend an average of €1,600 on Christmas festivities this year, representing a modest 3% increase from 2023 levels, according to new research from Retail Ireland.

This additional spending, which comes on top of regular household expenses, mirrors the current inflation rate and highlights the resilience of Irish families during challenging economic times.

Retail Sector Shows Resilience Amid Pressures

Arnold Dillon, director at Retail Ireland, described this year's performance as "more of a resilient performance from the retail sector as opposed to one of significant growth." This measured growth reflects the various economic pressures facing both businesses and consumers across Ireland.

"We have obviously seen cost pressures being quite significant in the supply chain, but also the cost pressures on business," Dillon explained. "One of the key challenges has been consumer sentiment, which has been lagging over the last year or so and really below historical levels."

Economic Impact and Future Outlook

The collective Christmas spending by Irish households injects more than €9 billion into the economy during December alone, underlining the critical importance of the festive trading period for retailers, hospitality, and leisure sectors.

Dillon noted that concerns about potential US tariffs impacting the Irish economy had dampened consumer confidence. However, as these fears appear less significant than initially anticipated, there is cautious optimism for increased spending in 2025.

Changing Shopping Patterns

The research reveals that Irish shopping habits remain remarkably consistent, with over a third of adults leaving their main Christmas purchases until December. Last-minute shoppers are predominantly men aged 55 and over, with many citing tradition and habit as their primary motivations.

"Probably the last couple of days would have been the most significant and the largest trading days of the year," Dillon observed, noting positive feedback from retail members despite the time pressures.

Digital Transformation in Retail

The pandemic has fundamentally altered shopping patterns, with remote working reducing footfall in town and city centres while boosting online retail growth. A particularly notable trend is the emergence of what Dillon terms 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," he explained. "So a really informed shopper arriving in with a very clear list of what they want to buy."

This shift towards informed, research-driven purchasing decisions represents a significant evolution in Irish consumer behaviour, combining digital tools with traditional in-store shopping experiences.