€4bn spend will see the tills ring out for Christmas

The tills are set to ring out this Christmas, with shoppers expected to splash close to €4bn this month — the best festive spend in five years.

Retail Ireland will publish details of its Retail Christmas Monitor today showing that, thanks to rising employment, increased disposable income, and rising consumer confidence, retailers are on course to record their best Christmas season since 2009.

The monitor, which tracks key trends across the economy and the retail sector, predicts €3.96bn will be spent in shops this month — up from €3.88bn last year.

It shows households will spend an extra €650 to €750 over the next three weeks compared to other months.

Retail sales in the first nine months of the year are up 1.5% in value terms on the same period last year, excluding the effects of buoyant car sales.

Retail Ireland said this is one of the first signs of recovery in the retail sector, where turnover has fallen by almost 25% since its peak in 2007.

The Ibec group’s report shows that, since last Christmas, about 35,000 extra people are working, with 96,000 more working than at Christmas 2012.

Disposable income is on the rise — up 3.3% in 2013 — with predictions it will grow by a further 3% next year, and consumer sentiment has recovered strongly to now be at its highest point since 2007.

The report says the consumer sentiment index is 30% higher than in 2013, 70% higher than it was between 2008 and 2009, and 10% higher than 2007.

These positive figures are further boosted by intense competition in the retail sector which is keeping prices down. Goods prices this month are on course to be at their lowest level since December 2002, with the bargains expected to continue into the post-Christmas sales.

Retail Ireland director Thomas Burke said: “The next few weeks are by far the most important trading period of the year, and key indicators are pointing in the right direction.”