Next Gen Retail Vol. 5

Like 2022, our survey indicates continued concerns about the affordability of Christmas shopping this year, with 70 percent of adults expecting it to be more expensive than in 2022 and 62 percent saying these increased costs will make the holiday season more stressful to them.

This year, 58 percent of consumers will reduce their Christmas shopping spending due to less disposable income and higher prices. While 6 in 10 have or will be reducing their spending in restaurants and pubs, compared to last year, to save costs.

Regarding budget allocation, consumers plan to spend more on gifts than food for the Christmas season. The average food shop spend is estimated at €254.70, while the average gift shop spend will be €407.40.

Those aged 35-54 have a bigger budget for gift shopping than most, planning to spend €475 on gifts and €277 on food. In contrast, those aged 18-24 are more conservative with their budgets, estimating €261.60 on gifts and €193 on food.

35–44-year-olds and females are most likely to start Christmas shopping early, while 6 percent of shoppers avoid all the stress and don’t do any Christmas shopping.

The shopping behaviours of consumers in Ireland have remained the same since the total lift of Covid regulations in early 2022 and most expect their shopping behaviours to remain the same over the coming 12 months.

Groceries remain the least likely category to be shopped online, while clothes and gifts drive online purchasing. The majority (85 percent) of consumers still prefer to buy groceries in-store, and 58 percent opt for in-store shopping for homeware.

However, 28 percent of consumers prefer to purchase clothes/fashion online, and 26 percent choose to buy gifts online, with younger cohorts showing a higher likelihood of shopping online across various categories.

Most consumers (43 percent) still prefer to shop at large shopping centres, an increase from 40 percent in 2022, followed by 27 percent who prefer to shop locally and city centres remain unchanged at 16 percent. 

Our survey reveals nearly 2 in 5 Irish adults prefer to use credit and debit cards as their most preferred method of payment, followed by 34 percent using cash, 15 percent using mobile payments like Apple/Android pay, and 1 in 10 Irish shoppers use Revolut as their preferred payment method for shopping online and sending money to/from friends and family. 

Under 35s are more likely to buy more often across all channels, whilst over 55s less likely to use online for any part of the buying journey. Those under 35 also view online shopping as a more convenient and cost-effective way to buy goods.

While over half of consumers (54 percent) agree that buying products online is cheaper, more than 60 percent still prefer to buy in-store to see and feel the product before making a purchase. Approximately 41 percent of consumers admit to occasionally abandoning online transactions due to complicated or lengthy website navigation and payment forms.