A new survey says 54% of shoppers are planning to reduce their Christmas shopping this year, with two in five planning to spend less compared to last Christmas.
The respondents to the latest KPMG Next Gen Retail survey cited having less disposable income for the decision.
The study of just over 1,000 adults also found that over half of consumers, or 55%, said they will be cutting back on dining out and entertainment in a bid to save money.
56% of those surveyed also expect to give smaller gifts due to "the impact of cost of living challenges".
Of those surveyed, 77% of consumers expect Christmas shopping to be "significantly more expensive" this year, compared to a level of 72% last year.
Higher prices, 60% of respondents said, have made shopping more stressful, while 19% said they are seeking credit facilities to help pay for Christmas expenses.
KPMG said a finding of particular concern is that a third, or 32%, of those aged 18 to 24 "plan to fund their Christmas through credit, highlighting ongoing issues related to cost and affordability".
The company said the findings suggest this Christmas will be "marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers".
The Head of Consumer, Retail and Manufacturing at KPMG said for retailers "winning Christmas will be about hitting the sweet spot on pricing that understands the pressure on disposable income but also gets it right on margin, range, stock and technology".
David O'Kelly also said while Irish shoppers may be tightening their belts this Christmas, "retailers should remain cautiously optimistic".
"Recent CSO data for September 2025 indicates consumers spent more on clothing, electrical goods and in department stores," Mr O’Kelly said.
"And the monthly volume of retail sales (excluding car sales) rose by 0.6% in September," he added.
The survey also found that price is still the primary factor influencing consumers when choosing where to shop, with 56% ranking it as a crucial consideration.
Quality follows as the second most important driver at 17%.
The study showed that despite the popularity of online shopping, 83% of adults still prefer purchasing groceries in store.
