Omicron to hit 'Irish Christmas retail, but supply chains in much better shape'

Shoppers on Oxford Street, London, on the final Saturday before Christmas. Fewer shoppers are out this week because of the surge in Omicron, which will 'dampen activity' for many retailers.
Picture: Dominic Lipinski/PA

The surge of the Omicron variant will hit Irish shops this Christmas, but supply chains will likely avoid the major disruption of last year, despite lockdowns in a number of European countries, experts have said. 

Senior economist Jim Power said retailers were already telling him of their fears for Christmas trading, after footfall had fallen in recent days, with fewer shoppers and with people withdrawing from social gatherings because of the upsurge of Omicron.       

With so few days to Christmas, the Omicron threat and hospitality restrictions will "dampen activity for many people and the online option is not there for businesses in what is an incredibly important week for retailers", Mr Power said. 

There is potentially better news from hauliers that the worst of last year's long queues at ports in England, which held up Irish imports and exports, will not be repeated this January.                         

However, Aidan Flynn, chief executive of Freight Transport Association Ireland, said European countries are making unilateral decisions on restrictions that affect trucks getting between the continent and Ireland. Nonetheless, supply chains have been through so much in the last year and have become more flexible, he said.  

Last year, the 11th-hour signing on Christmas Eve of the Brexit deal between Britain and the EU contributed to many snarl-ups for truck drivers travelling the so-called UK land bridge between Ireland and the continent. 

Meanwhile, evidence of the hit from Omicron for retailers is mounting in Britain.

New figures show the number of people visiting London's major shopping area was down by 20% this weekend, a sign of the toll the spread of the variant is taking on beleaguered UK retailers. 

Footfall in London's West End was 17% lower on Saturday and Sunday than the equivalent period in 2019, and 5% down on the previous weekend, according to data from the New West End Company. For the week, footfall slumped 29% relative to two years ago. 

"West End retail and hospitality businesses will have been disappointed with the turnout on the critical final weekend of Christmas trading," said Jace Tyrrell, CEO of New West End Company, which represents businesses in Oxford St, Regent St, and Bond St.  

"The retail and leisure sector is now facing a huge amount of financial uncertainty, when it should be enjoying a much-needed shot in the arm,"  he said.

• Additional reporting Bloomberg