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Dublin: 9 °C Thursday 17 October, 2019

Hard times, soft border: Dundalk fights back against cross-border shopping

Sterling is about 10% lower against the euro compared to before the 23 June referendum.

File photo.
File photo.

IN THE WAKE of the Brexit referendum earthquake, few people felt the aftershocks as keenly as the shopkeepers of Dundalk.

Following the plunge in the value of the pound, residents of this town of 37,000 people have been heading across to the border do their shopping and the movement has only intensified in the run-up to Christmas.

But while the politicians are still trying to figure out what Brexit will look like, retailers in Dundalk are fighting back with gift vouchers – a form of alternative currency aimed at boosting local shopping.

Dundalk Chamber of Commerce chairman Michael Gaynor told AFP:

The vouchers allow businesses to give their employees up to €500 as a Christmas bonus tax free, making it a win for employers, a win for employees and a win for local businesses.

Sterling is about 10% lower against the euro compared to before the 23 June referendum.

The Dundalk vouchers are available online or from the Dundalk Chamber of Commerce’s office and can be obtained either by individuals as regular gift vouchers for Christmas presents or by employers for bonuses.

The colourful ‘shop local’ vouchers are printed in denominations of €5, €10, €20 and €50, and are accepted in more than 200 Dundalk stores, from jewellers to electrical outlets to cafes.

So far this year vouchers to the value of more than €300,000 have been purchased, and the chamber of commerce expects this to top out at over €500,000 by the end of the festive period in early January — a welcome boost to a local economy under severe pressure.

Dundalk vouchers The Dundalk gift vouchers. Source: Dundalk Chamber of Commerce

Hard border

The border promises to be a central part of Brexit negotiations, with many on both sides fearing a return of customs and police checks – the “hard” border present during decades of conflict on the island.

The border is currently open and checks would be “hugely problematic”, including for many people from Northern Ireland who work in Dundalk, Gaynor said.

In recent months, shoppers from the Irish Republic have been crossing the border in waves to take advantage of the favourable exchange rate, particularly on alcohol, toys and groceries.

A recent Red C poll indicated that as many as 56% of shoppers in border counties intended to travel to Northern Ireland for Christmas shopping.

A report by Goodbody Stockbrokers showed traffic flows from south to north on Saturday mornings had surged 29% in the wake of the referendum.

Although there are strong appeals to support the local economy, even people walking the streets of Dundalk are voting with their pockets.

“Everything up north for toys is a lot cheaper and there is more variety — it’s definitely worth taking the trip up to get something a little different and save a few euros,” said Chris Cumiskey, a housewife who said she can save around 25% on food shopping in the nearby Northern Ireland town of Newry.

Eugene Kelly, an unemployed man, said:

At the end of the day, you’re going to go for the bargains.
They can say the economy here is going to be affected but at the end of the day you’ve got to go for your own pocket.

shutterstock_346145927 File photo of businesses in Dundalk. Source: Shutterstock


Lorraine Prenty, a human resources executive, said she chose to shop local but noted the increase in cars heading across the border in recent months.

“Around Dundalk there just isn’t the same volume of traffic or the number of people this year,” she said.

Gaynor tried to strike an upbeat tone, saying that a modest recovery in the value of the pound since the referendum meltdown had managed to avert disaster.

“We have managed to weather the storm, for now at least,” he said.

© – AFP, 2016

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