Most Irish people willing to spend ‘a little more’ on local products

Most Irish people say they are willing to spend “a little more” on local products, a study published on Monday shows.

Consumer confidence is growing with 64 per cent of Irish people more willing to go to bricks-and-mortar shops than two weeks ago, says accounting firm Deloitte’s State of the Consumer.

According to the study, 51 per cent of people are willing to spend more on products that are sourced locally, 1 per cent more than in previous studies, the firm notes.

News of the lift in consumer confidence follows last week’s prediction by the Economic and Social Research Institute (ESRI) that shoppers could spend an extra €8.7 billion next year as they tap cash hoarded during Covid-19 lockdowns.

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Consumers also say that they prefer shopping in-store for certain goods, including electronics and clothes, with 46 per cent saying that this is cheaper than paying for deliveries.

More people say they intend spending cash on nights out, with a 35 per cent increase in the number saying they will visit restaurants and 22 per cent more saying they intended buying alcohol.

Attitudes to travel, one of businesses most hit by the pandemic, are also shifting. Confidence in air travel rose to 26 per cent from 23 per cent in the last survey, while four out of 10 people say they would stay in a hotel.

However, 44 per cent of people still believe it is not safe to stay in a hotel, and 42 per cent are holding off on taking a holiday until the pandemic situation improves, the survey says.

Retailers

Speaking ahead of its publication, Daniel Murray, partner and head of consumer at Deloitte, said that the study indicated that retailers should have a busy Christmas.

“The findings of the latest survey also indicate that many Irish consumers are making conscious decisions to spend pent-up savings from the year at local businesses, which will provide a welcome boost.”

He predicted that Covid-19 transmission rates as the Republic emerged from the Christmas break would affect confidence into the early part of 2021.

Mr Murray noted that the trends showed shoppers were more willing to spend their cash with businesses that had responded well to Covid-19’s impact.

“Consumers are acutely aware of the economic impact of the pandemic and this is likely to continue to influence their spending decisions in the long term,” he said.