The latest monthly consumer spending report by Revolut, the global financial super app with more than 2 million customers in Ireland, reveals that the average consumer in Ireland is spending 17.8% more, year on year.
The relaxation of covid restrictions and a surge in holiday bookings led to strong performances across travel (67.7%), entertainment (15.8%), and shopping (22.6%). However, the rate of inflation also saw spending on utilities increase by 15%, year on year.
Despite the rise in the cost of living, consumers in Ireland have boosted their generosity. Donations to charity increased by 14.6%, and 8.9% more people gave to charity in January 2023, compared to January the previous year.
In January 2023, supermarket consumer spending increased 14.3%, year on year. The rise in supermarket consumer spending is even more significant in the context of last year’s covid restrictions. Furthermore, bakeries continue to grow in popularity, as the number of customers increased 43.3%, year on year, and consumer spending increased 47.6%.
Restaurants saw a 32.5% increase in consumer spending, as the number of transactions increased 30.4%, year on year. Fast food restaurants saw a more modest increase in consumer spending of 19.1%, year on year.
Additionally, takeaway delivery services saw a 30.9% increase in consumer spending, year on year, despite the average customer not spending more in this year in comparison to 2022. The rise in consumer spending can be attributed to the rise in the number of customers, which has increased by 33.3%, year on year.
In entertainment, museums increased their number of customers by 70.2%, year on year, and saw consumer spending increase by 120.4%. Cinemas (28.3%) and theatres (59.6%) saw increases in the number of transactions, and consumer spending increased by 35% and 45.3%, year on year.
Despite the rise in spending on entertainment outside of the home, spending on digital entertainment including films, tv and music also increased by 13.8%, year on year. However, spending at book shops decreased by 17.2%.
Revolut travel data suggests the resurgence of the travel agency. In January, the number of customers booking holidays with travel agencies increased by 178.3%, year on year, and consumer spending increased by 158.1%. Additionally, spending on hotels (35.8%) and airlines (55.5%) increased, year on year. Spending on cruises increased by 144.5% and saw a 39.9% increase in the number of customers making bookings.
The January sales helped to increase shopping, as clothing stores saw a 23.5% increase in consumer spending, and 20.5% more transactions, year on year. Similarly department stores saw a 14.9% increase in spending, and furniture stores saw a 21.5% increase. Furthermore, it was cosmetics stores that saw the biggest increase, with spending up by 40.8% and transactions up by 38.9%, year on year.
Stores that didn’t fare so well were florists which saw spending decrease by 2.5%, and sweet shops where spending decreased by 11%, year on year.
A Revolut spokesperson said: “Despite inflation boosting the rise in consumer spending, the relaxation of covid restrictions has contributed to the increased number of customers and transactions across several industries.
“From trips to the theatre, refreshing wardrobes in the January sales, and dining out, it’s encouraging to see that consumers are finding ways to budget for treats and experiences. Furthermore, January saw a huge rise in travel spending and the revival of the travel agency.”