Dublin Get's Early Xmas Lights - But, As Property Prices Slump, It's Doom & Gloom For Xmas 2008 In Ireland...
Dublin's early Xmas lights failing to dispel high street gloom...
Christmas is coming early to Dublin this year as city officials try to dispel the gloom from the country's first recession in two decades.
Mayor Eibhlin Byrne will switch on the Irish capital's festive lights display on Nov. 9, before cities such as London, New York and Edinburgh, after bringing the ceremony forward by three weeks from last year.
''For retailers, it's not an easy time,'' said Byrne. ''We are harking back to John F. Kennedy and we are asking not what your city can do for you but what you can do for your city.''
Irish shoppers powered the fastest-growing economy in Western Europe over the last five years. Now, consumers are cutting spending as unemployment rises and property prices slump.
Gerry Harvey, chairman of Sydney-based electronics and furniture retailer Harvey Norman Holdings Ltd., which has four Dublin stores, described Ireland's economy as ''a basket case.''
''They are putting on the lights early to make people spend their money,'' said Margaret O'Hara, 70, browsing on Henry Street, one of the city's main shopping boulevards. ''The shops are not doing business. There's no bustle there.''
There are signs of the slowdown throughout the city of 1 million people. Across the River Liffey, which divides Dublin, a 22,000 square-foot store housed in a converted 18th century building lies idle, after a franchise of London-based furniture retailer Habitat Ltd. closed down its outlet in May, blaming declining sales on a slump in the property market.
Crunch lunch
Nearby, on the city's quays, Yamamori Noodles is offering a credit crunch special: a bento box including sushi, rice, miso soup and a glass of champagne for €18.95 euros.
''Putting the lights on early may have a psychological impact, persuade people to have a last fling,'' said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. ''But there's such negativity around, it'll have a marginal impact.''
Irish retail sales fell the most in almost a quarter-century in August and consumer spending will drop around 1 percent this year, according to McQuaid. By contrast, spending rose 6.5 percent on average in the previous two years.
''Our like-for-like sales in Ireland are down and if the same thing was happening in Australia we wouldn't be making any money,'' Harvey of Harvey Norman said on Sept. 30. ''I've never seen a situation where like-for-like sales fall more than 20 percent, that's what is happening in Ireland.''
Sarah Kells, a 26-year-old nurse, said she plans to cut her Christmas spending by as much as 40 percent to about €300.
''I've a huge family,'' said Kells. ''We've all decided not to buy each other presents.''
Patriot
The Irish didn't confine themselves to home, either. Last year, 291,000 Irish shoppers traveled to New York, spending about €500 million, according to Dublin-based lobby group, the Irish Small and Medium Enterprises Association.
''Show a little bit of patriotism,'' said Byrne. ''There is no point saying 'I love Dublin' but shopping in New York.''
As part of a campaign to keep shoppers spending in Dublin, businesses in the city are spending €1 million on Christmas lights, including an 18-meter, five-ton structure made up of 100,000 bulbs on O'Connell Street, Dublin's main thoroughfare. Not everyone backs the decision.
''I hate to see Christmas trees going up too early,'' said Louis Copeland, who runs five men's clothing stores in Dublin. ''Christmas always happens, there's no reason it won't happen this year.'
The slowdown is benefiting at least some Irish retailers. Copeland, who lines his store walls with photos of celebrity clients including actor Kevin Spacey, says sales are recovering after falling by as much as 20 percent in May.
''With the recession, people are starting to be more conscious of what they wear,'' said Copeland. ''For a while, people were dressing down, everyone got sloppy.'' (Bloomberg)
Report by Louisa Nesbitt - Irish Independent Newspaper
Christmas is coming early to Dublin this year as city officials try to dispel the gloom from the country's first recession in two decades.
Mayor Eibhlin Byrne will switch on the Irish capital's festive lights display on Nov. 9, before cities such as London, New York and Edinburgh, after bringing the ceremony forward by three weeks from last year.
''For retailers, it's not an easy time,'' said Byrne. ''We are harking back to John F. Kennedy and we are asking not what your city can do for you but what you can do for your city.''
Irish shoppers powered the fastest-growing economy in Western Europe over the last five years. Now, consumers are cutting spending as unemployment rises and property prices slump.
Gerry Harvey, chairman of Sydney-based electronics and furniture retailer Harvey Norman Holdings Ltd., which has four Dublin stores, described Ireland's economy as ''a basket case.''
''They are putting on the lights early to make people spend their money,'' said Margaret O'Hara, 70, browsing on Henry Street, one of the city's main shopping boulevards. ''The shops are not doing business. There's no bustle there.''
There are signs of the slowdown throughout the city of 1 million people. Across the River Liffey, which divides Dublin, a 22,000 square-foot store housed in a converted 18th century building lies idle, after a franchise of London-based furniture retailer Habitat Ltd. closed down its outlet in May, blaming declining sales on a slump in the property market.
Crunch lunch
Nearby, on the city's quays, Yamamori Noodles is offering a credit crunch special: a bento box including sushi, rice, miso soup and a glass of champagne for €18.95 euros.
''Putting the lights on early may have a psychological impact, persuade people to have a last fling,'' said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. ''But there's such negativity around, it'll have a marginal impact.''
Irish retail sales fell the most in almost a quarter-century in August and consumer spending will drop around 1 percent this year, according to McQuaid. By contrast, spending rose 6.5 percent on average in the previous two years.
''Our like-for-like sales in Ireland are down and if the same thing was happening in Australia we wouldn't be making any money,'' Harvey of Harvey Norman said on Sept. 30. ''I've never seen a situation where like-for-like sales fall more than 20 percent, that's what is happening in Ireland.''
Sarah Kells, a 26-year-old nurse, said she plans to cut her Christmas spending by as much as 40 percent to about €300.
''I've a huge family,'' said Kells. ''We've all decided not to buy each other presents.''
Patriot
The Irish didn't confine themselves to home, either. Last year, 291,000 Irish shoppers traveled to New York, spending about €500 million, according to Dublin-based lobby group, the Irish Small and Medium Enterprises Association.
''Show a little bit of patriotism,'' said Byrne. ''There is no point saying 'I love Dublin' but shopping in New York.''
As part of a campaign to keep shoppers spending in Dublin, businesses in the city are spending €1 million on Christmas lights, including an 18-meter, five-ton structure made up of 100,000 bulbs on O'Connell Street, Dublin's main thoroughfare. Not everyone backs the decision.
''I hate to see Christmas trees going up too early,'' said Louis Copeland, who runs five men's clothing stores in Dublin. ''Christmas always happens, there's no reason it won't happen this year.'
The slowdown is benefiting at least some Irish retailers. Copeland, who lines his store walls with photos of celebrity clients including actor Kevin Spacey, says sales are recovering after falling by as much as 20 percent in May.
''With the recession, people are starting to be more conscious of what they wear,'' said Copeland. ''For a while, people were dressing down, everyone got sloppy.'' (Bloomberg)
Report by Louisa Nesbitt - Irish Independent Newspaper