People seek ‘big value’ ahead of VAT hike

WITH just 13 shopping days before Christmas, there has been an unexpected rise in people buying “big value” goods as they try to dodge the 2% VAT hike due in January.

Chambers of Commerce organisations across the country have said that “larger ticket” items are selling better than normal, especially if the goods are also on sale.

“Electrical and white good items that have been discounted in the run-up to Christmas are selling better than they normally would,” said Conor Healy, chief executive of the Cork Chamber of Commerce.

Dublin has said footfall in the capital has increased on last year when heavy snowfall transformed the city centre.

Dublin Chamber spokesman Andrew Smyth said he was hearing that “sales are up across the city and that people are getting out to buy bigger value goods before the VAT increases kick in”.

Traders such as Clery’s, he said, have told him Irish-made goods are selling particularly well — something they are attributing to an effort on behalf of shoppers to support their own.

Mr Healy said he would describe trading in Cork as “reasonably positive”: “It’s early days now but there is certainly some level of spend and I’d say it’s at the same level as last year. We are encouraging everybody to shop locally if they can as this time of year is so important to retailers.”

The city council’s festival, A Cork Christmas Celebration, has transformed Bishop Lucey Park, with a Willie Wonka-inspired garden. Shoppers can also enjoy the Christmas food and crafts market on the Grand Parade.

The festival will open for the final time from next Friday to Wednesday, December 21.

And, in an effort to attract customers to the Milk Market in Limerick, manager David O’Brien has developed a Santa Grotto.

Choirs have also been encouraged to perform at the Christmas market, which will run every Thursday to Sunday before Christmas.

“There is much more activity being put on at the market but we probably still only have the same numbers coming in.” Mr O’Brien said.

“And the older traders will tell you that spending is down by 40-50% on what it was before the downturn. So you have the same pot but spread much more thinly. The staples, like fish, food and vegetables will sell, as will Christmas artefacts, but the more spontaneous purchases like a piece of art or crafts just aren’t there,” he added.