The volume of retail sales fell by 0.6 per cent in May, as consumer spending in department stores along with food, beverage and tobacco feeling the largest decline.
Despite the monthly drop, retail sales volume still advanced 1.6 per cent in the past 12 months, according to the latest data from the Central Statistics Office (CSO).
“When motor trades are excluded, the volume of retail sales rose by 0.5 per cent in the month and by 0.9 per cent in the year when compared with May 2024,” said CSO statistician Tommy Allen.
“The value of retail sales was 0.7 per cent lower in May 2025 than in April 2025 and was up by 1.7 per cent when compared with May 2024.”
The drop in retail sales come as US import tariffs continue to weigh heavily on consumer spending decisions, and after a rise in retail sales volume of 1.1 per cent in April.
The latest economic forecasts expect the domestic Irish economy to grow by around 3 per cent in 2025 buoyed by a strong labour market - primarily on back of an increase in real wages (with nominal wages outstripping inflation) and an associated increase in consumer spending.
The drop in spending comes against the backdrop of average weekly earnings in the Irish economy surpassing €1,000, for the first time ever, in the first quarter of the year.
The CSO figures showed the largest monthly volume decreases in May were department stores – down 3.7 per cent; specialised food, beverages and tobacco stores which saw sales drop 2.2 per cent, as well as hardware, paints and glass – down 1.5 per cent.
In May, the biggest beneficiaries of retail sales trends were the fuel industry which rose 2.2 per cent, bars which gained 1.2 per cent, other retail sales (up 3.0 per cent), and Furniture & Lighting (up 1.2 per cent).
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Mr Allen of the CSO noted, on an annual basis, that furniture and lighting experienced the greatest volume growth at 10 per cent, followed by the hardware sector at 5.4 per cent and medical and cosmetics which gained 4.2 per cent sales volume.
On an annual basis, bars (down 6.8 per cent), department stores (dropped 4.2 per cent) and electrical goods (decreased 2.7 per cent) saw the largest decrease in sales volume).
The CSO said the proportion of retail sales transacted online was 4.7 per cent in May 2025, a slight decline on 5 per cent the month prior and 4.8 per cent in May 2024.
The metric saw a significant spike around the festive period, when online retail sales amounted to 6.1 per cent of total sales, or 8 per cent excluding motor trade.
