Average household Christmas spending in Ireland is forecast to reach €1,600 this year, according to Retail Ireland, part of Ibec. The figure, which is in addition to regular household expenses, represents a 3% increase compared with last year and roughly matches the current rate of inflation.
Arnold Dillon, director at Retail Ireland, described the performance of the retail sector as “resilient” rather than one of significant growth. He noted that cost pressures across supply chains and on businesses, as well as subdued consumer sentiment, have shaped spending patterns over the past year. “Consumer sentiment has been lagging and really below historical levels,” Dillon said, highlighting concerns over economic factors such as US tariffs, which appear to have less impact than initially feared. He expressed hope that easing worries could lead to higher spending in 2026.
Retail Ireland said total household Christmas spending injects more than €9 billion into the economy in December, underscoring the importance of the holiday period for retailers as well as other sectors, including leisure and hospitality.
The survey found that shopping habits remained largely stable year-on-year, with over a third of adults waiting until December to make their main purchases. Last-minute shoppers were more likely to be men aged 55 and older, with a third citing habit or tradition, while almost a quarter reported shopping late due to having fewer gifts to buy. Dillon said the final days before Christmas were the busiest trading period of the year, with many people taking time off work and contributing to a noticeable increase in footfall.
Changes in broader shopping patterns were also evident. The rise of remote work has affected footfall in towns and cities, contributing to growth in online shopping. The survey highlighted a growing trend of highly informed consumers. “There has been significant disruption in shopping patterns since Covid,” Dillon said. “This year we have seen a real growth in what people call the precision shopper. Many are conducting research online, including using AI, before visiting stores and buying exactly what they want.”
Retailers reported positive feedback as the holiday shopping season progressed, noting both strong in-store sales and the influence of digital tools on consumer decisions. Dillon emphasized that understanding these new shopping behaviors is critical for businesses seeking to capitalize on the lucrative Christmas period.
The findings suggest that while the retail sector faced challenges this year, Irish households are maintaining spending on festive items, balancing tradition with careful planning and informed purchasing decisions. The results also highlight the growing integration of online research and technology into the in-store shopping experience, signaling an evolving retail landscape for the years ahead.
