Retailers benefit from sales boost with 18% spending hike

Retailers across Ireland benefitted from a sales boost last month after spending jumped by 18% compared to December 2021, new figures show.

The Bank of Ireland debit and credit card spending in December rose by 5% overall when compared to November’s outlay as consumers embraced the Christmas rush.

The rise in spending was fuelled by festive shopping and the World Cup, with social spending last month increasing by 10% month-on-month and retail spending spiking by 10% in the same period.

It was a positive month across all business sectors, with a yearly jump of 18% in spending compared to December 2021.

Despite growing concerns over the impact of the cost of living, houses nationwide filled up with tasty treats in December as bakery spending rose by 33%.

And barber shops experienced a boost as men got themselves groomed for the holiday season – with outlay rising by 32%.

Conversely, with many people ill in December, spending in pharmacies increased by 42%, while those who could not be tempted out to socialise decided to curl up reading at home, with spending in bookstores up 29%.

Pub spending rose significantly by 28% last month, with daily World Cup matches and Christmas parties providing people with even more incentive to meet friends and colleagues.

Monthly restaurant spending went up by 9% in December, while outlay on fast food rose by 3%.

Notably, Bank of Ireland card spending in Qatar rose by 40% during December as the lure of watching footballers like Lionel Messi and Kylian Mbappe at the World Cup attracted fans to the Doha-based football extravaganza.

Across the counties, December spending rose, with Cavan shoppers leading the way with a monthly 9% spending hike.

Consumers splashed out in a number of counties including Carlow, which saw rises of 8%, Monaghan (also 8%) Sligo (7%) and Tipperary (also 7%), with people in Longford being the most circumspect with their spending – with the county only recording a 1% rise.

Jilly Clarkin, head of customer journeys and small and medium-sized enterprise markets at the Bank of Ireland, said the boost in spending “will have come as a welcome relief” for retailers.

She said: “Yearly spending rises on both clothing (+15%) and groceries (+13%) for December are strong indicators that the festive period was busier for businesses nationwide than in 2021, and it’s always nice to end the year on a high.

“In-person spend was recorded at 62% in December, a rise of 4% on the previous month, with shoppers comfortable to hit the high streets instead of shopping online.

“Increased footfall in cities and towns across Ireland underpins this data, a boost to indigenous retailers striving for more market share.

“It will be interesting to see if a level of ‘belt-tightening’ occurs in the early stages of the new year or if consumer demand remains steady over the coming months.”