Christmas trading fell flat for Irish retailers as consumers remained cautious amid lingering concerns over the cost of living, according to data from the Central Statistics Office.
Hopes of a Christmas surge in sales proved misplaced as the volumes actually fell 0.4 per cent compared to November. The seasonally adjusted annual decline was 0.1 per cent compared to December 2024.
Sales volumes were dragged down by a dip in the sales of books and newspapers, and a fall-off in clothing sales.
The December data is traditionally seen as an indicator of how willing consumers are to spend in the run up to Christmas – the key time of year for most retailers.
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A 9.4 per cent decline in the sale of books, newspapers and stationery, along with a 4.4 per cent fall in clothing and footwear contributed to the dip in sales. However, the motor trades showed a 7.8 per cent rise in sales year on year in a month not traditionally seen as key for that sector, while non-specialised stores added 0.5 per cent.
Excluding the motor trade, the overall fall in retail sales accelerated to 0.9 per cent year-on-year.
While sales were 0.4 per cent down by volume on November, they slipped by a more modest 0.2 per cent in value terms.
Volumes were influenced by a 9 per cent decline in the sales of books, newspapers and stationery, while fuel also decreased by 2.6 per cent, and hardware, paints and glass declined by 2.5 per cent. That was partially offset by a 2 per cent increase in the sales of electrical goods and a 1.7 per cent rise in the food and beverage sector.
Excluding the motor trade, which saw a rise in volume of 2.5 per cent, monthly sales volumes fell 0.8 per cent and value was unchanged.
On an annual basis sales by value increased by 1.5 per cent on December 2024, lifted by the motor trade. When that was discounted, the increase moderated 0.8 per cent.
Consumer sentiment took a hit in 2025, with the credit union consumer index for December at 61.2, markedly lower than the previous year.
The report’s author Austin Hughes said that while the Irish economy was still growing strongly, the jobs market was slowing. The data pointed to a slowdown in job creation while there were ongoing warnings about losses of jobs in the tech sector.
Sentiment edged higher in January but remained well down on a year earlier as “nervousness” continued to dominate the mood of Irish shoppers.
