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 SpendingPuls, produced on behalf of the four Dublin Local Authorities, the value of retail spending amongst consumers increased by 0.3 per cent quarter on quarter (QoQ) and 1.1 per cent year-on-year (YoY).
The 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 per cent) and necessities (+0.2 per cent) 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 per cent 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 per cent growth in spending was heavily influenced by the entertainment category.
Expenditure in hotels, bars and restaurants rose by 5.7 per cent 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 per cent YoY was the second strongest of the categories covered in the SpendingPulse. Growth was subdued in the remaining categories of discretionary (+0.3 per cent) and household goods (+0.2 per cent) in the quarter.
eCommerce spending in Dublin rose by 1.2 per cent 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.
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 per cent QoQ and 3.3 per cent 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 per cent 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 per cent 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 per cent) and nationally (+3.7 per cent) in the quarter.
The UK (+0.3 per cent) and German (-1 per cent) markets, which are especially vital for weekend breaks to the Irish Capital, recorded broadly stable spending patterns in the quarter.
