Introduction of euro reduces spending power, say shoppers

SHOPPERS gearing up for an €1.8 billion Christmas shopping spree believe the introduction of the euro has reduced their spending power dramatically.

A Deloitte & Touche Consumer Business Group survey of 300 shoppers shows 78% feel the introduction of the euro has had a negative effect on their spending power, with "everything becoming more expensive."

Shoppers believe that the introduction of the euro has made purchases 21% more expensive on average. Only 1% of consumers believe the euro has made things cheaper. Deloitte and Touche's head of consumer business Brendan Jennings said: "Even allowing for an actual inflation rate of 4% to 5% this year, it is clear many consumers believe that manufacturers and retailers have used the introduction of the euro to increase prices beyond that.

"Retailers, in particular, need to consider how they might educate their customers in relation to the real facts about prices.

"More than half the respondents to the survey (52%) said that they would do much more comparison shopping this year and this may due in part to a perception of euro-inflation." As many as 15% of shoppers will put off most of the Christmas shopping until the last minute to obtain last-minute bargains and others will put off some of their shopping until after Christmas Day expect to achieve discounts of 17.5% on average.

The survey found traditional department stores and multi-product supermarkets such as Arnotts, Brown Thomas, Clerys, Dunnes Stores, Roches Stores and Shaws remain the top of the list as the consumers' preferred shopping locations with 74% of adults planning to shop in those types of store. Specialised chains such as Dixons, Golden Discs and Power City will also be popular, with 65% of respondents mentioning them. A third of shoppers plan to use traditional street markets or Christmas markets this year. The survey found that most consumers already have some experience of online shopping, with 72% saying that they have purchased goods or services on the internet in the past year. As many as 27% say they will use the internet to shop this Christmas.

This Christmas, 26% of shoppers expect to spend more money on the internet than last year, while 19% will spend the same amount, 9% will spend less money, and 31% will not make any purchases on the internet at all.