Business And Leadership: Retailers to see dramatic drop in Christmas spending

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Retailers to see dramatic drop in Christmas spending

04.12.2009
Consumer spending over the Christmas season will reach €1.6 billion, down from €4.46 billion in 2008, according to an analysis of the retail sector by the Small Firms Association (SFA).

In light of the predicted drop, Assistant Director of the SFA Avine McNally (pictured) has called on all sections of Irish society to make a special effort to buy Irish this Christmas, stating that the forthcoming Christmas celebrations can add a major economic impetus to the country and help maintain jobs.

According to McNally, for many sectors, most notably the retail sector, the Christmas season presents the last opportunity to salvage something from what has been a very difficult year. “It is imperative that every opportunity is taken by business to offer the widest possible range of goods at the most competitive prices to the Irish consumer.

“Retailers must also bear in mind that current circumstances have changed the view of consumers. Retailers need to be attentive to this new consumer. Ireland’s consumer is now more rational. The focus is on easy accessible, practical, useful gifts. Customers will be purchasing on line for an easier access to choice and easy delivery, they will also be looking for promotions and attractive prices.”

The merchandising and advertising spend on Christmas will run to millions, she added. “Pubs, off licences, restaurants, toy stores, department stores, food suppliers, travel companies, airlines, businesses trading on line, taxis and others should see trade increase substantially on the run up to Christmas.

“Cross-border shopping has impacted on jobs within the retail sector and if the current cross-border shopping continues at its current rate during the remainder of December further jobs will be lost, particularly in the border counties. If everyone spent just €10 extra on Irish products the result would be an extra spend of over €20 million on Irish-made products during Christmas.”