Dublin Retail Spending Shows Slowing Momentum in Q3 2024
Published on 6th November 2024
Retail spending in the Dublin economy increased in Q3 2024 for the 17th consecutive quarter, albeit at a more subdued rate than the previous quarter. According to the latest MasterCard SpendingPulse™, produced on behalf of the four Dublin Local Authorities, the value of retail spending amongst consumers increased by 0.3% QoQ and 1.1% YoY. This ongoing growth signifies continued consumer confidence and willingness to spend, tempered somewhat by cost of living issues and interest rates which are at relatively high levels compared to recent years.
Spending growth in Q3 was subdued in the four major categories of the retail sector which are tracked. Entertainment (+0.3%) and Necessities (+0.2%) were the only categories in which expenditure rose in the quarter. Discretionary and Household Goods sales were flat.
Growth in spending via eCommerce platforms stood at 0.8% QoQ. While this represented a modest acceleration from the preceding quarter, it remained below longer term growth rates.
On an annual basis, the 1.1% growth in spending was heavily influenced by the Entertainment category. Expenditure in hotels, bars and restaurants rose by 5.7% YoY, likely influenced by several factors, including the ongoing recovery in the tourism sector, and the hosting of big ticket events such as Coldplay’s sold-out four night run between August and September 2024.
Spending on Necessities in Dublin in Q3 expanded largely in line with the current grocery inflation rate nationally. An increase of 2.6% YoY was the second strongest of the categories covered in the SpendingPulse. Growth was subdued in the remaining categories of Discretionary (+0.3%) and Household Goods (+0.2%) in the quarter.
eCommerce spending in Dublin rose by 1.2% YoY – a notable outturn which was one of the weakest increases in online spending since the series began, and may be a sign of maturing spending patterns after the unprecedented growth of the pandemic period.
Tourism Contributes Positively to Q3 Spending Growth
The international tourist market was a driver of retail spending growth in Dublin in Q3 2024. Expenditure by visitors to the Capital rose by 1.3% QoQ and 3.3% YoY, providing a timely fillip for the tourism sector and economy more generally in what is a somewhat challenging operating environment.
The US market, so crucial to Irish tourism, was once again a strong contributor towards QoQ growth. An expansion of 4.1% in spending by US tourists was the largest proportional increase amongst the source markets covered in the SpendingPulse. While robust, the increase was notably short of the growth rate of 15.2% nationally. This underlines a dichotomy between Dublin and the rest of the country in this crucial tourism segment.
While only representing a small portion of total retail expenditure, Chinese tourist spending expanded by similar rates in Dublin (+3.6%) and nationally (+3.7%) in the quarter. The UK (+0.3%) and German (-1%) markets, which are especially vital for weekend breaks to the Irish Capital, recorded broadly stable spending patterns in the quarter.
The French market was an outlier in Q3 with significant QoQ contractions in spending of 22.9% and 18.6% in Dublin and nationally respectively. This may be a reflection of the relatively subdued performance of the French economy in 2024 to-date, and the impact of the Paris Olympics on numbers travelling outside the country in the quarter.
Juliet Passmore, Economist, Dublin City Council, said on the latest findings:
“Dublin’s retail sector continued to grow in Q3. While growth rates softened, this was the 17th consecutive quarter of growth, in spite of high cost of living and inflation levels. The Entertainment sector continued to be a key driver in this regard. Increasing 5.7% YoY, spend in hotels, bars and restaurants remained crucial for the economy, as discretionary and e-commerce spend slowed.”
ENDS
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