Business

Almost three-quarters of consumers expect Christmas to be more expensive this year

Slew of shoppers preparing to spend less amid hit to disposable income

Consumers see Christmas as being more expensive this year File photo dated 24/12/2016 of a man carrying bags in the Broadmead shopping area of Bristol. Footfall in Scottish shops increased last month, new figures show, boosting hopes of good results for retailers over the traditional "golden quarter" leading up to Christmas. The latest Scottish Retail Consortium (SRC)-Sensormatic data shows footfall rose 0.8% year on year in October, better than the UK average decrease of 1.1%. Issue date: Friday November 1, 2024. PA Photo. The figures, which cover the four weeks from September 29 to October 26, show shopping centre footfall increased by 3.5% year on year in October. See PA story SCOTLAND Retail. Photo credit should read: Ben Birchall/PA Wire
Consumers see Christmas as being more expensive this year File photo dated 24/12/2016 of a man carrying bags in the Broadmead shopping area of Bristol. Footfall in Scottish shops increased last month, new figures show, boosting hopes of good results for retailers over the traditional "golden quarter" leading up to Christmas. The latest Scottish Retail Consortium (SRC)-Sensormatic data shows footfall rose 0.8% year on year in October, better than the UK average decrease of 1.1%. Issue date: Friday November 1, 2024. PA Photo. The figures, which cover the four weeks from September 29 to October 26, show shopping centre footfall increased by 3.5% year on year in October. See PA story SCOTLAND Retail. Photo credit should read: Ben Birchall/PA Wire
Fiona Keeley
Tue Nov 12 2024 - 00:01

Close to three-quarters of Irish consumers expect Christmas shopping to be more expensive this year, with more than a third planning to spend less over the festive season as a result, according to a new study.

The KPMG survey of consumer retail attitudes shows more than half of those asked will spend less on Christmas shopping due to having less disposable income.

The survey’s conclusions suggest Christmas is going to be “marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers”, said head of retail at KPMG Keith Watt.

The change in spending habits is also highlighted elsewhere, with 52 per cent of people saying they plan to reduce the amount they spend on shopping during the festive season, according to the survey. Some 56 per cent of respondents do not plan to go out to dinner as often in order to save money.

READ MORE

The survey also shows that 54 per cent of consumers plan to give people smaller presents this year, also highlighting the change in spending habits.

With the explosion of Black Friday and Cyber Monday in Ireland in recent years, 45 per cent of respondents said they plan to look for deals online over those few days. Some 38 per cent said they would do the same in stores across the country.

Mr Watt said that “with easing inflation, a strong labour market and a rising real incomes, there’s positive momentum for retail as the busiest time of the year approaches”. According to recent data from the Central Statistics Office, inflation for goods and services in Ireland rose by 0.7 per cent in October 2024, compared with the same month the previous year, continuing its downward trend.

  • Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
  • Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
  • Join The Irish Times on WhatsApp and stay up to date
  • Our Inside Business podcast is published weekly – Find the latest episode here
Business Today

Business Today

Get the latest business news and commentary from our expert business team in your inbox every weekday morning