Spending in Dublin retailers contracted in the fourth quarter of the year, falling by 4.8 per cent compared to the previous three-month period, as non-essential retail was shuttered to help slow the spread of coronavirus.
The data, from Mastercard Spending Pulse, covered the four local authorities in Dublin.
The decline came after a strong third quarter, with spending on necessities remaining stable. But there were substantial swings in other sectors, driven by ongoing closures in November. Discretionary spending, which includes department and clothing stores, fell by almost 50 per cent quarter-on-quarter, and spending on entertainment also declined.
Sales
But online sales rose 7 per cent in the three months, following a slight decline in the third quarter.
On an annual basis, overall retail spending rose by 1 per cent for the year, fuelled by rises in ecommerce, necessities and household goods. Entertainment spending was 70 per cent lower than the previous year, and discretionary spending was down 47.2 per cent year-on-year, but the survey predicted high Irish household saving rates would drive increased retail sales once conditions permit.
Tourist spending was also weak as ongoing travel restrictions slowed activity, falling 19.4 per cent on the quarter and 62 per cent over the year. Spending from the UK increased during the three-month period, which was attributed to Irish emigrants returning for Christmas.
Necessities
“Elevated spending on necessities and household goods helped overall retail sales activity in Dublin make a small gain at the end of 2020. Meanwhile restrictions continue to place tremendous pressure on the discretionary, travel and entertainment sectors,” said Michael McNamara, Mastercard’s global head of SpendingPulse.
“Online sales continued to experience increases through the 2020 holiday season, consistent with spending patterns in other countries. There is speculation that once restrictions are lifted, pent-up demand could help the travel, entertainment and restaurant sectors to recover.”
The Central Statistics Office showed overall retail sales in Ireland jumped 14 per cent in December as coronavirus restrictions were eased in the run-up to Christmas. That followed a plunge of 13 per cent in November as tightened restrictions saw shopper numbers fall significantly.
