Price Inflation Drives Dublin Retail Spending Growth
Published on 8th November 2022
The value of retail spending by consumers in Dublin continued to grow in Q3 2022, driven by price inflation. The latest MasterCard SpendingPulse™, produced on behalf of the four Dublin Local Authorities, shows that total retail spending in the Capital increased by 1.3% QoQ and 6.5% YoY (SA) - though there is evidence that consumers are purchasing smaller volumes of products, albeit at higher prices.
Growth was positive yet modest in the five categories covered by the MasterCard SpendingPulse. Discretionary expenditure rose by the greatest proportion with a QoQ expansion of 3.4%. This was followed by growth of 2.4% QoQ in the Necessities category and 1.1% in Household Goods. Entertainment spending, which had recorded double-digit QoQ expansions in each of the preceding six quarters, eased considerably with growth of just 0.7% QoQ.
The 6.5% YoY growth in retail spending in the Capital was driven to a large extent by a 58% increase in the Entertainment category as hotels, bars and restaurants recovered. Household Goods expenditure rose by 4.2%.
Spending via eCommerce has been on a constant upward trajectory since 2014 and maintained a positive growth rate of 1.6% QoQ and 10.7% YoY.
Total retail spending nationally grew at a slower rate of 3.5% YoY. This was also mainly driven by Entertainment spending which expanded, but at a marginally weaker rate (54.9% YoY) than that seen in Dublin. Household Goods sales also performed strongly with a growth rate of 3.5% YoY. eCommerce spending across Ireland has largely tracked the Dublin trend in recent quarters, and also grew by 10.7% YoY.
Dublin Lags Ireland in Tourist Spending Growth
Spending by visitors to Dublin remained stable in Q3 2022 in a somewhat disappointing return for the Capital’s economy. Growth in tourist spending of just 0.4% QoQ in the late summer season is below expectations for a tourism sector which is still recovering post-pandemic. The modest YoY expansion in Dublin tourist spending was substantially exceeded at the national level where expenditure grew by 11.9% QoQ. Receding expenditure by French visitors (-26.5% QoQ) was the main contributor to weak growth in Dublin in Q3, though there was double-digit growth from the US (+27.3%), UK (+15.3%) and Chinese (+11.9%) markets. The German market recorded growth of 5.8% QoQ in Q3 – its strongest thus far in 2022.
Michael McNamara, Global Head of SpendingPulse, MasterCard, said on tourism spending:
“The latest estimates from SpendingPulse are showing more moderate retail sales activity with YoY growth rates at 6.5% for Dublin and 3.5% for Ireland overall. Higher prices compared to a year ago helped to drive retail sales growth rates over the past 3 months across the country. The growth in Necessities, Household Goods as well as Discretionary spending are all up in the low single digits, while the recovery in tourism spending drove 58% growth in the Entertainment sector in Dublin and 55% growth in Ireland overall.”
Notes to the Editor
SpendingPulse™ is provided by MasterCard Advisors and produced in conjunction with Grant Thornton on behalf of the four Dublin Local Authorities to report on national and Dublin retail sales performance. Data is seasonally adjusted but is not adjusted for inflation. MasterCard SpendingPulse™ does not represent MasterCard financial performance.
To access the full report please click on the following link: www.dublineconomy.ie
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