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ECommerce pushes Irish household spending to new high

Ireland News.Net - Tuesday 12th September, 2017

DUBLIN, Ireland - According to latest numbers released by Visa Ireland Consumer Spending Index, Irish household spending rose in the month of August, receiving a major boost by eCommerce.

The index showed that the country’s household spending rose 2.5 percent year-on-year in August - witnessing an increase year-on-year for the past six consecutive months.

However, the figures also indicated that the latest expansion remained weaker than the average since the series began in September 2014.

According to the spending index which measures expenditure across all payment types, the increase was driven by eCommerce spending which increased 11.5 percent year-on-year.

It noted meanwhile that face-to-face expenditure continued to under perform, seeing a decline in spending for the eleventh successive month.

Further, August’s rate of decline in face-to-face expenditure, at 2 percent year-on-year, was the most marked since May.

According to the index, for the month of August, spending on household goods emerged as the best-performing sector, with spending in the sector rising 10.8 percent.

Meanwhile, spending on clothing and footwear also saw a continued revival, rising 5.5 percent year-on-year.

In contrast, other sectors with slower growth in spending were recreation and culture, that witnessed spending increases of 2.9 percent year-on-year, and hotels, restaurants, and bars which saw spending increases of just 1 percent year-on-year.

Health and education and transport and communication categories, returned to growth during the month, posting solid increases of 5 percent and 3.4 percent respectively.

The index showed that food and drink was the only category that did not see a rise, as the spending in the sector was completely unchanged year-on-year. 

Philip Konopik, country manager, Visa Ireland said in the report, "This month’s Consumer Spending Index continues to post a picture of positive growth, with eCommerce at the heart of the expansion. The increased popularity of online shopping has not necessarily come at the expense of the traditional bricks and mortar of the retail sector, with many businesses incorporating electronic payment methods.”

Konopik added, “For example, people are using apps on their smartphones to pay for goods and services like taxis or takeaways, where they would only have been using cash in the past. Needless to say that it is vital that merchants need to ensure that they are able to accept digital payments or run the risk of missing out on sales."

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