Dublin retail spending stages ‘modest fightback’ in Q2 2021

Dublin retail spending showed signs of a modest recovery in Q2 2021 as the easing of Covid-19 restrictions aided the sector.

This is according to the latest MasterCard SpendingPulse™, produced on behalf of the four Dublin Local Authorities, shows that total retail expenditure increased by 5.1% QoQ in the quarter.

The main trends were towards bricks-and-mortar outlets with expenditure in the Discretionary and Entertainment categories expanding QoQ by 61% and 21.3% respectively – albeit from historically low bases.

Growth in Household Goods expenditure was also exceptionally strong, rising by 20.6% QoQ.

This is significant as it underlines the continued confidence of Dublin consumers to spend on ‘big ticket’ items – in spite of increased opportunities to spend elsewhere in the economy.

eCommerce, which surged during the depths of the pandemic, fell back by 2.6% QoQ in what is likely a signal of a modest migration back towards bricks-and-mortar retail.

On a YoY basis, growth of 17.1% was recorded in Dublin retail spending, though the same quarter in 2020 was the lowest ebb for the domestic economy. The substantial YoY expansion was mainly driven by Household Goods (+77.6%), Entertainment (+75.2%) and Discretionary (+53.4%) spending.

A striking differential in spending patterns between consumers in Dublin and at the national level emerged in Q2. A swifter recovery was recorded nationally in the quarter (+13.4% QoQ, +31.6% YoY), mainly driven by Discretionary spending growth.

Spending by overseas tourists in the Dublin economy showed signs of revival in Q2 2021 with an expansion of 25.6% QoQ and 184.4% YoY.

This was driven by growth in spending by tourists from each of the main markets. European markets were integral and strong rebounds were recorded in spending by tourists from the UK (+158.2% YoY), France (+123.4%) and Germany (+58.9%) in particular.

Michael McNamara, Global Head of SpendingPulse, MasterCard, said on consumer spending:

“Overall the retail sales environment in Dublin as well as Ireland has improved with growth rates exceeding 17% compared to Q2 2020.

“The extreme positive growth rates for overall retail sales were expected as we compare with the Covid-19 related restrictions of 2020.

“From a sector perspective we are seeing spending rebalance with a return to the discretionary sector that was largely shut down over the past year.

“For Dublin, tourism spending is showing huge growth rates compared to Q2 2020 from European based countries.  The international tourism volumes from the USA are still lagging though the hope is that trans-Atlantic tourism will resume soon.”