Retail Market Snapshots

Ireland entered Q1 2026 with continued economic resilience, albeit against a backdrop of renewed global uncertainty. The latest economic forecasts from Ireland’s Department of Finance show GDP growth of approximately 3.1% in 2026, alongside consumer spending growth of around 2%. Inflation is expected to rise to 3.3% over the year, supporting continued growth in consumer expenditure and providing a stable foundation for retail activity.

Retail sales data from the Central Statistics Office indicates a positive start to the year, with sales volumes increasing by 1.5% month-on-month in January and 3% year-on-year. Growth was recorded across both discretionary and essential categories, including books, hardware and clothing. 

Consumer behavior continues to evolve in response to macroeconomic conditions. Households are increasingly value-conscious while still engaging with retail formats that offer experience, convenience and strong brand interaction. This balance is becoming a defining feature of the Irish retail market.

Leasing activity in Q1 reflects a continued convergence of value-led and experience-driven retail. The expansion of Normal is a clear example. Following its initial entry into the Irish market at the Ilac Centre, the brand has delivered strong trading performance on Henry Street and has since secured additional space at Northside Shopping Centre. Its merchandising model highlights the increasing overlap between value retail and experiential shopping. Indigenous operators are also expanding their physical presence. Pestle & Mortar, founded by Sonia Deasy, is set to open its second standalone store at Dundrum Town Centre, reflecting the growing use of physical retail by digitally native brands to strengthen direct consumer engagement.

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