Retail sales growth picked up in December as shoppers increased spending on clothing, footwear, and cars, according to new figures from the Central Statistics Office (CSO). The data showed a 1.1% rise in retail sales volume, signalling a modest rebound in consumer confidence.
However, while several retail sectors experienced gains, spending in bars continued to decline, highlighting the lingering effects of the cost-of-living crisis.
Fashion, Cars, and Home Improvement Lead Retail Gains
On an annual basis, retail sales volumes climbed 0.8% compared to December 2023. Inflation has put pressure on consumer spending over the past year, but real wage growth is expected to sustain domestic demand in the coming months.
Key retail categories that saw strong growth year-on-year included:
- Clothing, footwear, and textiles: +8.8%
- Food, beverages, and tobacco: +6.8%
- Department stores: +6.4%
- Hardware, paints, and glass: +3.8%
- Pharmaceuticals, medical, and cosmetics: +3.5%
These increases suggest that holiday shopping, seasonal promotions, and greater economic confidence encouraged spending across various sectors.
Declining Sectors Reflect Shifting Consumer Priorities
Not all areas of retail experienced positive growth. Sales volumes declined in several sectors, including:
- Fuel: -7.8%
- Bars: -4.6%
- Books, newspapers, and stationery: -0.3%
- Electrical goods: -0.2%
The drop in fuel sales may reflect improved energy efficiency and a shift towards hybrid and electric vehicles. Meanwhile, weaker spending in bars suggests that higher household costs may still be limiting discretionary spending on leisure activities.
Online Sales Maintain Growth
E-commerce continued to play a key role in the retail sector, with online sales accounting for 6% of total retail transactions in both December and November 2024. This figure was up from 5.4% in December 2023, though it only includes transactions from Irish-registered retailers and excludes major platforms like Amazon.
When excluding motor trades, the retail sector still showed positive momentum, with a 0.3% rise in monthly sales and a 1.1% annual increase compared to December 2023.
Expert Insights on Consumer Confidence
Colette Devey, consulting partner and consumer sector lead at EY Ireland, highlighted that the December sales uptick was partly driven by strong retail performance in November.
“This trend reflects a more confident Irish consumer benefiting from both greater economic certainty after the general election and the cost-of-living supports from Budget 2025,” Devey explained.
She also noted that grocery, clothing, and beauty products exceeded expectations, with festive season shopping, holiday gifting, and Black Friday deals contributing to the sales boost.
As 2025 progresses, retailers will be watching closely to see if consumer confidence remains strong or if inflationary pressures continue to dampen spending.
