Record Christmas spending splurge

LATE shoppers and early sales are keeping checkouts busy as the country buys its way into another record Christmas spending splurge.

Despite the gloomy warnings from Budget Day earlier this month, spending has topped last year’s spectacular send-off to the punt.

The rate of increase in expenditure has slowed year-on-year after the hectic growth of the previous four or five years, but according to Dublin Chamber of Commerce communications manager Jerry Minihane, that was to be expected. “Something that impacted a lot on consumers was the Budget and the talk of downturn and cutbacks. It’s a psychological thing. If people have the impression that next year they will have less money, they’re inclined to hold back a bit.

“Many retailers have started full sales or at least major reductions and that too would indicate a bit of nervousness, but there will be growth, which is the important thing. There’s certainly no going backwards.”

The experience is similar elsewhere around the country with business in Cork so far described as “very positive” and possibly the busiest day of all yet to come today. “The elements were against us on Saturday and that had an effect on trading on what would normally have been a very busy day, but business was very brisk on Sunday; today is very positive and we’re expecting the same on Christmas Eve,” said Cork Business Association president James O’Sullivan.

In Galway, retailers were on course to reach their €100 million target for expenditure on Christmas shopping and the new year’s sales after a concerted “Spend Christmas in Galway” campaign.

Small Firms Association director Pat Delaney also noted a boost to restaurants, particularly in Dublin, and he said early predictions of a €3.4 billion national spend on Christmas treats could well be beaten when the final receipts are counted.

“There’s no one sector doing badly. The cities are busy and the out-of-town centres are doing well too. I have spoken to retailers in Cork, Limerick, Galway and Waterford today and they’re all performing well.”

The only downside to the spending spree is that the black market is expected to benefit from it to the tune of some €200 million. “About €104 million of that would have gone back to the Exchequer in taxes. That would fund a few hospital wards. But the more immediate problem for consumers is that they will probably be buying defective goods and they will have no comeback,” said Mr Delaney.

The Government might learn something from the average shopper about watching the cents, according to Irish Intercontinental Bank chief economist Austin Hughes.

“Consumers have been fairly sensible in terms of juggling their finances. The big shock this year is that the Government has virtually run out of money in terms of funds for public services, but consumers have been much more cautious, so they still have money in their pockets.”