Deloitte survey echo’s CSO figures on consumer sentiment

Irish households will spend on average €1,431 on Christmas this year, an increase of 6.9% on last year. Deloitte’s annual consumer survey of Christmas spending sees Ireland retain its top spot in Europe’s spending league. The UK is placed second behind Ireland with an average household spend of €1,007. The survey also reinforces figures release by the Central Statistics Office last week on consumer’s economic outlook.

Of this Irish figure, a total of €720 will be spent on gifts, €431 will be spent on food with €279 spent on socialising. Ireland tops the table in each category with some of Europe’s emerging countries featuring in the top half of the table. Despite the large spend, the amount of money spent by households in Ireland represents just less than 4% of household revenue.

Rising food costs has made its mark on the Irish consumer with 35% of consumers adopting different purchase strategies as a result of food price increases. Interestingly, the Irish consumers that feel affected by the increase in food prices will choose to buy fewer gifts in order to be able to buy the same quantity and quality of food.

Commenting on the results of the survey, Susan Birrell, Partner, Consumer Business, Deloitte said: “Traditionally, Irish people have been very big spenders thanks to the very strong Christmas traditions here in Ireland and the positive view of the economy and purchasing power has always supported this. This year, however, we are seeing uncertainty about the economic situation – 50% of the population think the economy will deteriorate in 2008 with 33% of respondents acknowledging that the economy is in recession. This is in stark contrast to the last year when 80% of Irish people satisfied that the economy was stable or improving.

Despite this, the survey shows that people do intend to spend more than ever this Christmas. It is interesting to note that the low confidence in the economy is not mirrored in personal financial positions – 42% of respondents say that their purchasing power will increase in 2008 – and 75% feel secure in their current job situation. This, coupled with a confidence in the political stability (75%) of the country can explain the high levels of spending.”

Christmas Wishlists

Santa Claus will be most generous to spouses and partners this year - 49% of respondents said that they would get the most expensive gift for their partner. When it comes to children, 23% said that their daughter or son would get the most expensive gift. These figures demonstrate a shift in the demographical structure of the Irish population. As the population continues to grow older, Christmas will continue to become more of an ‘adult’ event.

Books, gift vouchers and music are the most desired gifts by adults in Ireland according to this survey. The survey also shows that there will be some disappointment among women in Ireland this year – for example, while 58% of woman surveyed wish to receive jewellery, only 40% of men will be purchasing this for them!

Unfortunately children in Ireland may not receive what they want this year – as only 52% of those surveyed believe they know what their children want. The top three children’s gifts this year will be action figures and play sets, Bratz and computer games. On teenagers’ wish list this year are music/CDs, cash and MP3 players, reinforcing the establishment of the ‘2.0 teens’.

Where will they buy?

With regard to food purchases, supermarkets still remain the most popular choice with traditional food shops such as the butcher and baker and discount food shops in the top three favourite stores.

With regards to non-food products, 75% of respondents intend to buy non-food products in traditional department stores. Interestingly, 66% will also buy non-food products in supermarket chains, which is further evidence of the rise of hypermarkets in Ireland.

The ethical question continues to have an impact on consumer spending patterns with 65% of Europeans admitting that they are willing to pay more for an ethical product. Such a moral dilemma does not seem to affect Irish consumers as much with only 35% admitting a similar pull towards ethical purchasing.

Online spending

52% of respondents outlined their intention to buy on the internet. In fact, the Irish are the second biggest users of the Internet, just behind the Germans. 36% of respondents said that they will buy products and services over the internet with 25% using the internet to research and compare prices. The reasons behind this internet usage are greater product choice (36%) and to avoid crowded stores (34%). CDS, DVDS, books and tickets will be the top items purchased on the internet.

That said there are a number of deterrents from using the internet. 44% of respondents prefer to see or handle products. However, only 11% are concerned with fraud and online security.

The Early Bird gets the present

More than 6 out of 10 Irish people intend to start their 2007 year-end shopping before the end of November, predominantly to avoid crowds and queuing. However only 15% hope to have finished their Christmas shopping by December.

 Read the report here 

Ends

Notes to editors

About the research
The Christmas survey is carried out over the Internet and telephone, with a structured questionnaire to a sample of 400 individuals, within a controlled panel. Each consumer in the panel is identified through the following dimensions: Socio-demographic, personal interests and consumer behaviour. The study was mostly conducted during the first week of October. Respondents, who are 18 or older, regularly answer studies, and each consumer in the panel is identified through socio-demographics, personal interests and consumer behaviour.

This Deloitte Christmas survey is carried out in 20 countries from the EMEA region. Studies have been conducted in parallel, using similar methods, in Scandinavia, in the UK and in the USA.

About Deloitte

In Ireland, Deloitte is among the nation’s leading professional service firms, providing audit, tax, consulting and financial advisory services through more than 1,000 people in Dublin, Cork and Limerick. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and its people excel. “Deloitte” refers to Deloitte & Touche and any associated partnerships and companies established under the laws of Ireland. Deloitte is the Irish member firm of Deloitte Touche Tohmatsu. For more information, please visit the Irish member firm’s website at www.deloitte.com/ie.

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