The latest Consumer Market Monitor, published by The Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School, reveals that consumer spending is making a significant contribution to Ireland’s economic growth, with increased spends on big ticket items a major factor.
According to the quarterly report, which was released on Monday, (November 16th) the already high sales volume of new cars continued to grow in the first nine months of 2015, with 114,446 new cars licensed across the first three quarters of the year.
Retail sales are also seeing significant improvement, as sales volumes rose by 7.2% in Q3 year-on-year. Household Goods saw an especially strong performance in volume sales, with furniture and lighting sales up 18.7% in volume, and electrical goods up 13%.
Another interesting finding from the report is how online retailing now accounts for as much as 15% of business for many retailers. Worth €5.6 billion in 2014, online retailing is predicted to grow to €21 billion by 2017.
Supermarkets have seen volume sales rise by 5.1% in Q3 year-on-year, with value sales also rising by 3.5%.
The trends highlighted by the Consumer Market Monitor are supported by improving levels of employment in Ireland, which brings with it a positive effect on disposable incomes. There are now 1.96 million people working in Ireland, which represents an increase of 130,000 since the low point in 2012.
Mary Lambkin, Professor of Marketing, UCD Smurfit School, and one of the authors of the Monitor, commented, “Disposable incomes are at last beginning to show modest growth as a result of jobs growth.”
She added that this, “coupled with greater availability of credit” is leading to accelerated spending across many categories.
© 2015 - Checkout Magazine by Jenny Whelan