Irish consumer spending rose by 2% in May compared to the previous year, according to data from Allied Irish Banks (AIB) based on 83 million card transactions. While energy and transport costs remained high, shoppers shifted spending toward cinema, dining, and the secondhand retail market, which saw a 197% increase in volume on resale platforms.
Why are Irish consumers shifting toward secondhand retail?
Shoppers are increasingly prioritizing value and sustainability, as evidenced by a 197% jump in spending at resale platforms and thrift-style outlets, according to AIB. This surge contrasts sharply with a 9% decline in traditional clothing store spending. According to industry analysis, this pivot allows consumers to maintain their purchasing habits while bypassing the higher price points of new inventory. By choosing used goods, shoppers also mitigate the environmental impact of textile waste associated with the fashion industry’s overproduction.
The shift toward resale is not just a trend for clothing. Consumers are increasingly utilizing community exchange networks and apps to source furniture, kitchenware, and children’s essentials, effectively reducing household expenses without sacrificing quality.
How is discretionary spending changing in the current economy?
Despite persistent inflation in energy and fuel sectors, Irish households are opting for “small indulgences” rather than broad cutbacks, according to AIB. Cinema spending saw a 53% increase, with May 3 marked as the year’s busiest day for theater attendance, driven by new film releases. Restaurant spending climbed 10%, while pub and fast-food expenditures rose by 5% and 7%, respectively. Adrian Moynihan, AIB head of consumer, noted that these figures demonstrate a clear resilience in consumer behavior following the initial shock of rising energy costs.
What is the future outlook for travel and transport spending?
Consumers are becoming more selective with travel, favoring local entertainment over expensive international trips. AIB reports that while service station spending grew by 8% and toll usage by 7%, high-ticket travel categories suffered. Cruise line spending plummeted 29%, and travel agency bookings fell 3%. Additionally, the 74% increase in spending on electric vehicle charging signals a long-term transition in how Irish residents manage transportation costs, even as traditional fuel prices remain elevated.
Comparison: Traditional Retail vs. Resale Growth
| Category | Spending Change |
|---|---|
| Traditional Clothing Stores | -9% |
| Resale & Thrift Platforms | +197% |
To maximize your savings, rotate your seasonal wardrobe through resale apps. Selling items you no longer wear can offset the cost of purchasing new-to-you pieces, creating a circular budget that minimizes out-of-pocket expenses.
Frequently Asked Questions
Why did cinema spending rise so sharply in May?
According to AIB, the 53% spike was driven by high-profile film releases, including the Michael Jackson biopic and “The Devil Wears Prada 2,” making May 3 the peak day for cinema spending in the calendar year.
Is the rise in secondhand shopping purely about cost?
While cost is a primary driver, AIB data and broader market trends suggest that consumers are also motivated by the desire to reduce waste and find unique, high-quality items that are no longer available in standard retail outlets.
Are Irish consumers still traveling?
Yes, but preferences have shifted. Consumers are scaling back on expensive, long-haul travel like cruises (-29%) and professional travel agency bookings (-3%) in favor of local dining and entertainment experiences.
How are you adjusting your budget this year? Share your tips for finding the best thrift deals or managing rising costs in the comments below, or subscribe to our weekly newsletter for more financial insights.
