Busy festive season to set Irish retailers’ tills ringing

The tills are set to ring out this Christmas with retailers predicting one of the busiest festive seasons in years.

The latest Retail Ireland Monitor suggests the economy will see the biggest boost in spending since 2008 as the budget changes to the Universal Social Charge kick-in, while the weak euro is also set to attract more tourists to Ireland.

A survey of more than 14,000 shoppers suggests almost half (46.9%) hope to get their Christmas shopping done in November.

Personal consumption expenditure on core retail goods during December will be equivalent to about €2,450 per household, an increase of approximately €600 compared to other months.

Retail Ireland said it expects core retail sales for December to reach €4bn, up 3.5% on 2014. Strengthening momentum means that consumer spending growth will top 3.1% this year.

Despite positive trends of growth across virtually all categories of retail during the first nine months of the year, retail sales this Christmas are still expected to be down 12.2% on 2007 levels.

“The fact that sales this Christmas will only be up 3.5% on the level of retail sales of Christmas a decade ago in value terms, despite rising costs and legacy debts, underlines the last decade’s status as a lost decade for the sector,” said Retail Ireland director Thomas Burke.

“While we are finally seeing light at the end of the tunnel, not all parts of the country are keeping pace. The recovery in Dublin and other major urban centres is significantly ahead of other parts of the country.”

Mr Burke welcomed the Government’s decision to double the tax-free allowance on gift vouchers from €250 to €500 describing it as a “progressive move”.