Irish retailers have reported stronger-than-expected Christmas sales activity helped by cost-of-living supports and increased political certainty in the wake of the general election.
“Feedback on Christmas sales has been broadly positive,” head of the Ibec-affiliated group Retail Ireland Arnold Dillon said on Friday.
“Black Friday falling a week later than last year and bad weather earlier in the month meant some delayed their Christmas shopping, but there was a significant surge in the days just before Christmas, which more than made up for the slow start.”
He also noted that Christmas spending growth was supported by Budget 2025, which gave €2 billion to consumers in November and December in additional cost-of-living supports.
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“Despite a challenging year, we end the year in a better place than where we started. Cost of living concerns remain, but they are certainly easing,” he said.
Mr Dillon cited Ibec data, suggesting the average household was expected to spend €1,555 more in retail during the month of December compared to other months, up 1 per cent on last year.
“We expect to see about €8.9 billion in retail spending in December, €3 billion and 50 per cent more than the typical spend in other months,” he said.
Jean McCabe of Retail Excellence Ireland said December sales were boosted in the wake of the general election and by the double child benefit payment, which landed in the same month.
“We had two positive reinforcements that gave people a bit of confidence,” she said.
“This year has been a challenge for retailers managing costs – so a good December will certainly be welcomed ahead of another scheduled increase in the minimum wage,” Ms McCabe said.
The national minimum hourly rate will rise by another 80 cents to €13.50 from next month.
While overall sentiment among retailers for December has been quite good, some smaller SMEs were still reporting difficulties while the multiples seem to have benefited more from Black Friday.
She also noted that some fashion outlets had not sold as much stock as expected because of the unusually milder weather.
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