A frugal festive season

WHAT'S THE STORY WITH CHRISTMAS BARGAINS?

A lot is being asked of the dramatically unfestive 60ft "Christmas tree" which was unveiled on Dublin's O'Connell Street last week. Made up of nearly 100,000 energy-efficient bulbs, the northodox tree was put in place weeks earlier than usual in order to get people in the mood for the festive splurge by running up credit card bills.

The tree was turned on by Lord Mayor Eibhlin Byrne. She called on Dubliners to do their civic duty by ignoring the allure of Newry or New York this year and spending whatever money they have in Dublin, despite the fact that it might not be the most competitively priced place in the world.

"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."

It has undeniably been a bad year for retailers, with spending falling every month of the year except for January, but, as Ireland prepares to celebrate its first recessionary Christmas for nearly 20 years, consumers who have been bled dry for a decade are unlikely to heed Byrne's call to alms.

According to the annual Deloitte spending survey, shoppers will spend an average of 5.3 per cent less this Christmas compared with last year. This year the average household spend will be €1,354, with a generous €688 set to be spent on gifts, €422 on food and €264 on partying. The survey also suggests that 14 per cent of consumers will buy their Christmas treats in the discount retailers - twice last year's number. Among the other big winners this Christmas will be Penneys, where the canny Christmas shopper in search of expensive-looking but ridiculously cheap Christmas decorations, trees and lights and budget party frocks is sure to go.

WHILE THE PROFITSin other retailers were falling, Primark, a unit of Associated British Foods, which trades as Penneys in Ireland, was increasing its profit by 17 per cent to £233 million (€286 million) on the back of a 21 per cent increase in sales. "Primark has done well in previous downturns," said AB Foods chief executive George Weston, adding that the retailer was "well-placed for the recession".

Aldi is also pulling out all the stops to ensure the suddenly sensible Irish consumer comes through its doors this year and, judging from the Aldi Christmas brochure that was released last week, the store is keenly aware of opportunities a recessionary Chrismas presents for it.

In the run-up to Christmas, the supposedly downmarket shop is selling a range of distinctly upmarket products. It has increased its stock of Irish products including Bord Bia-approved dry-aged steaks, selling for 30 per cent less than comparable products elsewhere, free-range poultry and Irish cheese boards for €6. It is also selling frozen whole goose for €24.99, part-boned pheasant stuffed with pork and apple and topped with a bacon lattice for €10.99 and whole Canadian lobsters for €8.99.

The move towards more upmarket ranges has not been "an all-of-a-sudden decision", says Tony Baines, Aldi's head of buying for Ireland and the UK. He and a number of other executives flew into Ireland on a major charm offensive last week, breaking the store's long-standing tradition of not speaking to the press.

Baines says Aldi is trying to create a "broad-church appeal", with the aim of making "the luxury affordable". He claims Irish and UK stores have "led the Aldi world in this area and some of our sister companies in Germany and Austria, for instance, are starting to follow as we have shown how we can encourage customers to buy everyday products but also products of a premium nature."

Aldi is, however, at pains to point out that it is not rubbing its hands with glee at the prospect of a downturn. Baines says the store is "very conscious that the recession is not a good time and we don't want to be seen to be making hay while the sun doesn't shine. We are very keen to offer the customer a benefit to come to us when they have less money in their pocket."

ONE OF THE MOSTpopular destinations for weekend shoppers in the weeks leading up to Christmas will be the big shopping centres in Newry, with Sainsbury's proving to be the biggest draw for people stocking up on booze. The price differentials are remarkable.

A bottle of Jameson Irish whiskey, which costs €24.99 in Tesco in the Republic, costs the euro equivalent of €17.22 in Sainsburys in Newry. Eight 500ml cans of Carlsberg have a price tag of €14.99 south of the border, while eight slightly smaller 440ml cans of the same beer cost just €6.72 in the North. Meanwhile a bottle of Bailey's Original Irish Cream, which costs €18.69 in Tescos in the Republic, costs €13.45 in Sainsbury's in the North, while a bottle of Oyster Bay Merlot costs €14.69 in Tesco in the Republic and €11 in the North.

If you plan to get through two bottles of whiskey, 24 cans of beer, two bottles of Baileys and six bottles of wine over the entire Christmas period (not all on your own, hopefully), you will save yourself €72.97 by doing the booze shopping across the Border. And if you plan to host a Christmas party, the savings will be a whole lot more dramatic.

Incidentally, it is worth doing your homework before heading across the Border to do your Christmas shopping, because certain products - including many dairy items - actually cost more in the North. And on more than one occasion recently, we have heard tell of Irish-registered cars queuing up to buy petrol in Newry even though petrol prices have long been significantly higher there.

It would also be a mistake to assume that toys are always cheaper up North. The toy trade is incredibly competitive in Ireland with retailers watching each other very, very closely in the run-up to Christmas, anxious to ensure they are not undercut or left with a reputation for being expensive. The high level of competition means that toy prices south of the Border are broadly similar to those in the North, although it is still worth comparing the prices online to see if there are bargains that can be found and checking out the likes of www.amazon.co.uk, which is very difficult to beat when it comes to books, CDs, DVDs and board games.