Almost three-quarters of consumers expect Christmas to be more expensive this year

Close to three-quarters of Irish consumers expect Christmas shopping to be more expensive this year, with more than a third planning to spend less over the festive season as a result, according to a new study.
The KPMG survey of consumer retail attitudes shows more than half of those asked will spend less on Christmas shopping due to having less disposable income.
The survey’s conclusions suggest Christmas is going to be “marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers”, said head of retail at KPMG Keith Watt.
The change in spending habits is also highlighted elsewhere, with 52 per cent of people saying they plan to reduce the amount they spend on shopping during the festive season, according to the survey. Some 56 per cent of respondents do not plan to go out to dinner as often in order to save money.
The survey also shows that 54 per cent of consumers plan to give people smaller presents this year, also highlighting the change in spending habits.
With the explosion of Black Friday and Cyber Monday in Ireland in recent years, 45 per cent of respondents said they plan to look for deals online over those few days. Some 38 per cent said they would do the same in stores across the country.
Mr Watt said that “with easing inflation, a strong labour market and a rising real incomes, there’s positive momentum for retail as the busiest time of the year approaches”. According to recent data from the Central Statistics Office, inflation for goods and services in Ireland rose by 0.7 per cent in October 2024, compared with the same month the previous year, continuing its downward trend.