Consumer spending in the run-up to Christmas has been lower than expected and is only slightly up on the same time last year, according to Retail Excellence Ireland.
The organisation also says that sales margins have been lower because of early sales this month.
REI represents over 11,000 shops, and it says it is hard for consumers to break the habit of being frugal.
It had expected the last few days before Christmas would be buoyant, but says busy trading failed to happen across the country.
It added that customers were not buying as many things as usual, but spending money on one or two quality items instead.
REI expects shopping during the sales after Christmas to be very busy, as retailers try to reduce stock levels.
Business though in pubs and restaurants was up - with the Drinks Industry Group of Ireland reporting increased numbers in pubs and restaurants this Christmas.
It says more staff have been taken on this year both in cities and rural economies.
