Shift to e-commerce continues as click and collect suspended

Irish consumers' online spending reached record highs in November, accounting for half of all PoS spending 

Total e-commerce expenditure amounted to €2.7 billion in November 2020, a 35% increase when compared to the same month in 2019.

Irish consumers' online spending continues to grow as Covid-19 restrictions limit opportunities for in-person shopping with e-commerce spending reaching record highs in November to account for half of all point of sale (PoS) card spending, according to new figures from the Central Bank of Ireland.

Total e-commerce expenditure amounted to €2.7bn in November 2020, a 35% increase when compared to the same month in 2019.

While this new series high is only marginally larger than the previous high recorded in April 2020, at 49 per cent, in value terms, e-commerce spending was up 61 per cent, the Central Bank noted.

Total spending was €6.5bn in November 2020, a negligible increase of 0.3% on the same period last year.

Card spending fell in both the services and social sectors with transport (down 54%), accommodation (down 64%) and restaurants and dining (down 28%).

However, in the retail sector card spending increased by 6% on a monthly basis and 22% on a yearly basis, with the electrical goods sector (up 50%) and the groceries sector (up 29%) seeing the greatest benefits.

Click and collect 

However, some retailers are to face further challenges as the Government has agreed to temporarily ban click and collect services for non-essential retailers in new measures aimed at curbing the spread of the Covid-19 virus.

Retail Excellence, the largest representative body for the retail industry in Ireland, described the move as “another setback” for retailers.

Duncan Graham, managing director of Retail Excellence, said while he believed the decision was “well-intentioned”, it would have a disproportionately negative effect on smaller retailers.

It is clear that the country is facing an enormous challenge and, of course, we acknowledge that the Government must act to halt the spread of Covid-19 but there is little public health risk in allowing customers collect goods from non-essential retailers who remain shuttered because of the lockdown.

“We need to move now to substantial discussions as to how Government can support retailers, particularly in respect of rents and other fixed costs. Many of our members will have been closed for almost half a year by the time we get to the anniversary of the pandemic in March, and they need help urgently if they are to reopen when this emergency passes,” he added.