It’s official, then. Champagne sales have increased in Ireland which, according to an economic paradox, signals the country is heading for a recession.

Sales of sparkling wines atSuperquinn have risen by 9.5% this year, fuelled mostly by champagne and not, as might be expected, the much cheaper prosecco.

Richard Waring of Lansdowne Market Research said this is because consumers with dwindling spending power like to treat themselves: “It’s well known, as you head intorecession, that people look for ways to cheer themselves up.

“If you are struggling to pay off a mortgage or debts, you figure that life can’t be all gloom and doom. Champagne might be expensive, but in the grand scheme of things it probably isn’t.”

While even sales of champagne will fall as the recession takes hold, smaller-ticket items such as nail varnish, lipstick or chocolate become inexpensive treats, said Waring.

Anne Morris, product manager for L’Oréal Paris — the brand that convinced millions of women that they were “worth it” — said women whose finances can’t stretch to a new outfit will always find money for a new lipstick or nail polish: “I think a lot of women will keep up with trends by buying make-up, where before they’d have bought a new dress.”

At the Harvey Nichols summer sale in the Dundrum shopping centre, Dublin, manager Dee Breen also noticed a change in spending patterns. “People are still investing in luxury goods and products, but they have to think a bit more about it. If they have a strong designer-led wardrobe, they’ll update it with the latest accessory. We’ve seen a big increase in accessory sales — sunglasses and jewellery in particular.”

Conspicuous consumption hasn’t disappeared completely, however. An Italian designer who visited Harvey Nichols last week selling Botox-injected python-skin handbags for between ¤3,000 and ¤12,000 managed to attract a few customers.

“People still want that glamour factor,” said Breen, who concedes that a recession is likely to affect the luxury store.

Yvonne Laird, who owns the Beauty Parlour in Terenure, Dublin, claims her regular clients are spending more than ever. “The volume of clients is down, but the spend by regular customers has increased. I think it’s a bit of defiance, and I feel the same way myself.”

Older people are taking recession in their stride, according to research by Lansdowne. “We’ve found those in their mid-forties plus are less perturbed about what’s happening,” said Waring. “Belt-tightening is something they’ve known because they grew up with it. If you’re in your twenties, it’s a new phenomenon.”

Waring believes the changed economic outlook will see DIY make a comeback. “People will think again about renovating their houses, especially as they’re less likely to consider moving,” he said. “So they’ll repaint their living room and buy a new piece for it. Again, they want to feel that it’s not all doom and gloom.”

However, many purchases, particularly white goods or electrical appliances, will be delayed, according to Waring. “People will put off buying things like new fridges and freezers,” he said. “They’ll put up with what they have, especially if it doesn’t actually need replacing.”

Another indication of harder times in the coming months is the dramatic increase in the interest in people growing their own fruit and vegetables. Suttons, the seed seller, said vegetables now account for 70% of all seeds sold in Ireland. Five years ago, flower seeds were the big seller, with vegetables accounting for just 40%.

Food prices are also responsible for the rising popularity of discount supermarkets. In the first six months of this year, 30% of grocery shoppers changed their buying habits, according to a recent survey by the National Consumer Agency.

About 26% of people are buying cheaper brands of their favourite products. The same percentage of shoppers are also spreading their budget across a range of supermarkets, including discounters such as Aldi or Lidl. Meanwhile, Amarach, another market research company, predicts that 70% of grocery shoppers will soon be doing the same.

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