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      Irish consumers are preparing for a more challenging Christmas this year, reflecting ongoing economic uncertainties.

      The latest KPMG Next Gen Retail Survey reveals that 77 percent of Irish shoppers expect Christmas shopping to be significantly more expensive this year, compared to 72 percent in 2024.

      While two in five (40 percent) plan to spend less compared to last Christmas, this marks an increase in cautious spending habits.

      Price is still the primary factor influencing consumers when choosing where to shop, with 56 percent ranking it as a crucial consideration. Quality follows as the second most important driver, with 17 percent prioritising it when selecting a retailer.

      Additionally, individuals aged 35 to 54 are particularly inclined to rank finding the best price in their shopping decisions.

      For retailers, winning Christmas will be about hitting the sweet spot on pricing that understands the pressure on disposable income but also gets it right on margin, range, stock and technology. It’s a fine balance in a hugely competitive sector.
      David O’Kelly

      Head of Consumer, Retail & Manufacturing

      Key findings

      77% expect Christmas shopping to be more expensive this year
      45% will actively seek out Black Friday and Cyber Monday deals online
      9 in 10 rate value for money as their top shopping priority
      2 in 3 like to read online product reviews from other customers before buying a product
      8 in 10 use the deposit return scheme
      1 in 3 believe AI will transform how consumers purchase products and services
      55% will reduce their spending in restaurants and pubs
      2 in 5 intend spending less this Christmas
      83% prefer to buy groceries in store
      56% rank price as their top priority when choosing where to shop
      53% say brands should go beyond being sustainable and take responsibility for reversing environmental damage
      14% intend to use generative AI for their Christmas shopping

      Attitudes to Christmas shopping

      Our findings suggest that this Christmas will be marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers.

      The research highlights shifting spending habits, with over half (54 percent) planning to reduce their Christmas shopping, due to having less disposable income, and 55 percent intending to cut back on dining out to save money.

      Shoppers are increasingly turning to online shopping in search of better deals this Christmas. Nearly half (49 percent) report that they are shopping online more frequently due to inflation and rising prices.

      Specifically, 45 percent indicate that they will search for Black Friday and Cyber Monday deals online, while 39 percent plan to shop in-store for these promotions.

      As a result of cost-of-living pressures, over half (56 percent) anticipate giving smaller gifts this year compared to 54 percent last year and 6 in 10 say higher prices have made shopping more stressful.

      Additionally, 1 in 5 consumers (19 percent) are seeking credit facilities to help pay for Christmas expenses. Of particular concern is that a third of those aged 18 to 24 (32 percent) plan to fund their Christmas through credit, highlighting ongoing issues related to cost and affordability.

      55% will reduce their spending in restaurants and pubs
      45% will actively seek out Black Friday and Cyber Monday deals online

      Shoppers continue to cut back

      Irish consumers are feeling less financially secure than they did this time last year. Nearly one-third (32 percent) report feeling less financially secure now than at the beginning of the year, compared to 27 percent in 2024.

      This insecurity has led to an intensified focus on price and value for money in their shopping behaviours, particularly among those aged 55 to 64 and residents of Connacht and Ulster.

      In response to these economic challenges, over half (52 percent) are purchasing fewer items compared to the previous year.

      Additionally, a significant portion are buying more products on promotion or discount (47 percent), opting for more own brand / value products (47 percent), using retailer loyalty schemes (46 percent) and cancelling monthly subscriptions (35 percent) to manage their budgets more effectively.

      Irish shoppers may be tightening their belts this Christmas, but retailers should remain cautiously optimistic. Recent CSO data for September 2025 indicate consumers spent more on clothing, electrical goods and in department stores and the monthly volume of retail sales (excluding car sales) rose by 0.6 percent in September.
      David O’Kelly

      Head of Consumer, Retail & Manufacturing

      Growth in online shopping

      Despite the growing popularity of online shopping, the survey reveals that 83 percent of adults still prefer purchasing groceries in-store, highlighting the importance of the tactile shopping experience.

      Nevertheless, interest in online shopping is on the rise, with more than half (55 percent) considering it generally cheaper than in-store options and 49 percent stating that buying products online is easier than shopping in-store.

      Additionally, two-thirds (67 percent) of consumers appreciate reading online product reviews from other customers before making a purchase. However, challenges remain, as 26 percent of shoppers avoid online purchases due to complicated return processes.

      The survey also highlights that 61 percent of respondents prefer to shop in a physical store so they can touch and see the products before making a purchase. This trend reflects the continued importance of physical retail experiences.

      As a result of competition from leading e-commerce firms, European retailers are enhancing their physical stores to boost both online and offline sales, taking advantage of the growing consumer enthusiasm for shopping in person.

      83% prefer to buy groceries in store

      Shoppers are expecting more from brands

      Most (90 percent) of consumers identify "value for money" as the most crucial factor when choosing their favourite retailers, followed closely by quality at 71 percent. Additional important elements include product choice (48 percent), loyalty benefits (47 percent), and customer service (46 percent).

      As consumer expectations evolve, there is an increasing demand for brands and retailers to enhance their online and social media presence. Notably, 2 in 5 expect to be able to contact brands 24/7 through channels such as online web chats.

      Sustainability awareness and usage grows

      Sustainability awareness among Irish consumers continues to rise, with 82 percent now using the Deposit Return Scheme, an increase from 77 percent last year.

      Shoppers are placing greater expectations on brands to take meaningful action, as over half (53 percent) believe brands should go beyond being sustainable and take responsibility for reversing environmental damage.

      There is also strong support for retailers to offer incentives or discounts for choosing eco-friendly or circular economy products, with 62 percent in favour.

      Additionally, 53 percent feel brands should provide more information about their sustainability efforts, while 48 percent believe retailers should actively educate consumers on the environmental impacts of their purchasing choices.

      Notably, over a quarter (27 percent) of shoppers are willing to pay a premium for sustainably produced goods.

      8 in 10 use the deposit return scheme
      53% say brands should go beyond being sustainable and take responsibility for reversing environmental damage

      AI uncertainty persists

      Irish shoppers are divided on the potential benefits of AI in their shopping experiences. Older consumers and those in rural areas display significant hesitation, while younger generations embrace AI's advantages.

      Notably, 2 in 5 believe that trust in how retailers use AI will significantly influence their future shopping choices. Additionally, a third (32 percent) anticipate AI will transform how consumers purchase products and services, with 28 percent agreeing that it will improve online shopping experiences and 21 percent saying it will help reduce fraudulent transactions.

      Only 14 percent plan to leverage generative AI for their Christmas shopping this year.

      14% intend to use generative AI for their Christmas shopping

      Survey objectives and methodology

      KPMG’s survey of consumer retail attitudes was conducted via RED C. It focuses on understanding evolving consumer behaviours and market trends to guide businesses in adapting to the future of retail.

      Quotas were set on age, gender, social class, and region to ensure a nationally representative sample of 1,001 adults 18+. Fieldwork was carried out between 2nd – 7th October 2025.

      Where available, results are compared to previous waves of the retail tracker carried in out in Apr ’25, Oct ’24, Apr ’24 and Oct ’23.

      Get in touch

      Do you have any queries about the findings of our KPMG Next Gen Retail survey, or the impacts for your business? Our team of seasoned industry specialists is here to empower your business with invaluable advice and solutions.

      To find out more about how KPMG perspectives and fresh thinking can help you, please get in touch with David O’Kelly, Head of Consumer, Retail & Manufacturing. We’d be delighted to hear from you.

      David O'Kelly
      David O'Kelly

      Partner, Head of M&A, Head of Consumer, Retail & Manufacturing

      KPMG in Ireland

      Helping businesses adapt, execute and maximise growth strategies while mitigating risk
      Read more

      Media queries

      If you’re a media professional and have any questions about this article or would like to speak to one of our experts for background or interview purposes, please don't hesitate to reach out to us.

      Contact Sandra Farrell of our Communications team for more information.

      Sandra Farrell
      Sandra Farrell

      Associate Director of Communications

      KPMG in Ireland

      Read more in Retail & Manufacturing

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