According to a new report, sales of clothing and beauty products surged in the second quarter of this year as rescheduled weddings and social events took off in earnest, but as many people returned to the office. , demand for electrical appliances slowed.
According to the latest AIB Retail Spend Outlook Report, overall sales remained stable in the fourth quarter, registering a modest 1% year-on-year decline. In-store sales were up 5% last year, compared to a 17% decline in online channels.
The move between in-store and online spending should be viewed in the context of restrictions on some elements of the retail sector last year.
Clothing and cosmetics sales have rebounded significantly this year as weddings have been rescheduled. In particular, spending in categories such as cosmetics, dresses, shoes, and men’s formalwear increased significantly.
Clothing saw the most dramatic increase in spending, with the category as a whole up 13% from last year. This included a huge shift in consumer behavior, with in-store sales up 55% and online sales down 18%.
However, many trends have reversed compared to a year ago. Demand for electronics has slowed as more people return to offices and hybrid ways of working.
Additionally, as hospitality opened up, sales declined in grocery stores (-2%), electronics (-18%), and off-licensing (-19%).
Alan McKim, Head of Retail at AIB, said:
“The data show evidence of some behavioral changes, such as consumers returning to in-person shopping after a monopoly online environment was offered in parts of the sector in the first half of last year.
“While the data points to some positives, given the current inflation environment, which is likely to impact consumer discretionary purchasing power and attitudes going forward, It also suggests elements that require attention.”
Duncan Graham, Managing Director of Retail Excellence Ireland, said further government steps will be needed to help businesses in the coming months.
“As the quarter came to a close, summer sales started early, adding further discounts to clear inventory,” he said.
“We expect further price increases into the fall as manufacturing, transportation, energy and labor costs all continue to rise. will be.”
