The volume of retail sales rose by 1.1 per cent in December as consumers spent more on cars, clothing and footwear. However, sales in bars were down suggesting the cost-of-living squeeze has not fully lifted.
Figures from the Central Statistics Office (CSO) indicated sales volumes were up by 0.8 per cent on a 12-month basis. While the retail environment has been hit by inflation, consumer spending, linked to real wage growth, is expected to drive domestic activity in the medium term.
The CSO figures indicated that the sectors showing the highest volume growth year-on year-were clothing, footwear and textiles (+8.8 per cent), food, beverages and tobacco (+6.8 per cent), department stores (+6.4 per cent), hardware, paints and glass (+3.8 per cent), and pharmaceuticals, medical and cosmetics (+3.5 per cent).
However there were annual declines recorded in fuel (-7.8 per cent), bars (-4.6 per cent), books, newspapers and stationery (-0.3 per cent), and electrical goods (-0.2 per cent).
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The CSO said the proportion of retail sales transacted online was 6 per cent in both December 2024 and November 2024, compared with 5.4 per cent in December 2023. However these figures only cover Irish-registered retailers and exclude transactions on Amazon, the biggest online retailer.
When motor trades are excluded the volume of retail sales rose by 0.3 per cent in the month and increased by 1.1 per cent in the year when compared with December 2023, the CSO said.
Commenting on the latest figures, Colette Devey, consulting partner and consumer sector lead at EY Ireland, said both sales volumes and value were up 1.1 per cent on the back of a strong retail performance in November.
“This trend reflects a more confident Irish consumer benefiting from both greater economic certainty in the wake of the general election as well as the cost of living supports provided by Budget 2025.
“Sectors such as grocery, clothing and beauty all performed above expectations, driven in part by festive season gifting and entertaining, as well as the timing of Black Friday this year where much of the retail trading uplift for this sales event will have been accounted for in December’s books.”
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