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November Sees Third Successive Decrease In Irish Consumer Spending

Published on Dec 19 2019 10:04 AM in Retail tagged: Featured Post / Visa / Visa's Irish Consumer Spending Index / IHS Markit

November Sees Third Successive Decrease In Irish Consumer Spending

Irish consumer spending has fallen for the third month in a row in November, research shows.

Last month spending decreased by 1.9% year-on-year, the reduction was slightly stronger than that seen in October which fell by 1.4% compared to the same period for the previous year, but softer than in September, the latest Visa’s Irish Consumer Spending Index, produced by IHS Markit, highlighted.

For the first time since February 2018, the eCommerce channel registered a worse performance than face-to-face.

Online V's Face-to-Face

Ecommerce spending fell by 4.1% year-on-year, following a 0.8% rise in expenditure during October.

This marked the sharpest reduction in spending in the series so far.

According to the report, the solid decline in spending in November potentially reflects the fact that Black Friday occurred at the end of November in 2019, with Cyber Monday falling in December.

“Although eCommerce fared badly in terms of spend across November, the sharp decline was likely influenced by the later than usual timing of Cyber Monday," said Philip Konopik,
Ireland Country manager, Visa.

Commenting on the 0.6% in Face-to-Face spending during the period, Konopik added: "Having said that, the high street seems to have weathered the storm much better, experiencing only a marginal decline."

The sentiment suggests a positive outlook for face-to-face spending across December, which may give rise to stronger consumer spending overall as people prepare for Christmas and the New Year.

'Where You Shop Matters'

According to research carried out by Visa earlier this month, shoppers in Ireland value the personal touch provided by local retailers and recognise the value they bring to communities.

The survey commissioned by Visa titled 'Where You Shop Matters' has highlighted Irish shoppers’ affinity for their local retailers, with 82% of the public surveyed on first name terms with staff in a local store, and almost seven out of ten (68%) adults surveyed being so familiar with local retailers that staff know their order without having to ask.

This personalised shopping experience was highlighted by 58% of consumers questioned as one of the top reasons why they will shop locally this Christmas.

"As our research shows, Irish shoppers are more inclined to shop locally during the festive season, so retailers will be hoping this translates into a positive sales performance in the last month of the year.” He added.

A modest 2.1% improvement was seen in the Food & Drink category during the period and Household Goods showed a 0.1% increase during the period.

© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.

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