€3.49bn to be spent by Christmas shoppers, say SFA

THE SFA say we are going to shop our socks off this Christmas spending a record €3.49 billion — €18 million an hour — but business gurus Deloitte say it will be a frosty Yule for retailers with spending down 23%.

Regardless of how much people spend Small Firms Association director Pat Delaney wants people to buy more Irish products this year.

“If everyone spent just 60 extra on Irish products the result would be an extra spend of over €100 million on Irish-made products during Christmas.

"This would have a significant impact for small business and Irish jobs. Given that notified redundancies this year will be the worst since 1984 we need to make a special effort to protect existing Irish jobs,” he said.

In contrast the Annual Deloitte Christmas Survey found nearly a quarter (23%) of Irish consumers expect to spend less this Christmas than last year. This year, the survey found, the average Irish household will spend only €1,066 down from last year’s €1,395.

Yet, Deloitte say Irish consumers still plan to spend more than their European counterparts with the average spend across Europe only €706.

Head of consumer business at Deloitte Brendan Jennings said: “Consumer spending at Christmas relates to how confident people feel about their income and job security.

The majority of Irish consumers (75%) believe that the Irish economy is either flat or in recession now; 15% feel that their job is ‘not secure’; and 21% expect a fall in household income in 2004. Against this background it is not surprising that Irish consumers are tightening their belts.”

Deloitte’s director of consulting Cormac Hughes said its not all doom and gloom for retailers.

“The average amount spent on gifts was €567 in 2002, but this is expected to rise to €607 this year,” he said.

Spending on most other categories is expected to be lower with an average spend on clothes of €153 this year while €136 will be spent on food and drink, and €174 on socialising.

Last-minute shopping is also evident, with 48% of consumers saying they will start shopping late this season, mainly in the hope of obtaining discounts.