Retail spending in Dublin falls by 8.1% from late last yearGary Ibbotson 04 May 2022
Retail spending in Dublin fell in the first quarter of 2022, according to a report published by Mastercard on behalf of the four local councils.
The report shows that total retail spending in the capital fell by 8.1 percent in the first quarter of 2022, compared to quarter four of 2021.
Dublin City Council says that “this is likely a result of increased cost of living pressures linked to soaring energy prices due to the war in Ukraine.
“Despite the quarter-on-quarter decline (QoQ), the lifting of most remaining Covid-19 restrictions in January contributed to a year-on-year (YoY) increase in consumer spending of 3.4 percent.”
The most significant quarter one fall in Dublin was seen in department and clothing stores where discretionary spending dropped by 28.3 percent.
“Necessities spending also reduced, though this was somewhat expected as the lifting of restrictions provided consumers with additional opportunities to eat and drink outside the home,” the council says.
“By contrast, spending increased in Entertainment and Household Goods in the quarter, growing by 7.2 percent and 4.4 percent QoQ respectively.
“The eCommerce channel also continued its upward trajectory expanding by 7.2 percent QoQ.”
Spending on the entertainment and discretionary categories also grew YoY with an 84.6 percent and 70.1 percent increase seen respectively.
Household Goods sales increased by 9 percent, though spending on Necessities fell by 5.1 percent.
According to the report, retail spending by overseas tourists in Dublin rose by 29.9 percent since last quarter, and by over 230 percent since quarter one in 2021.
2This positive development is largely attributable to the successful rolling out of vaccines and the easing of travel restrictions both in Ireland and internationally,” the council says.
“Germany has continued to be the single strongest source of growth for retail spending by visitors to Dublin with a YoY expansion of over 670 percent in Q1, albeit from a low base.”
Michael McNamara, Global Head of SpendingPulse, MasterCard, said on consumer spending: “The first quarter experienced an impressive rebound in year-over-year growth across retail sales driven by the recovery of sales in the discretionary and entertainment sectors.
“As Covid restrictions are eased compared to 2021 the most impacted sectors are roaring back to life.
“Tourism spending is also staging a comeback with growth from tourists coming in from across Europe including Germany, France and the UK. Growth rates have to be taken in context with the depressed spending levels from a year ago, however they are a strong sign of the pent-up demand for Dublin and Ireland as a destination.”