Cross-border shopping now on ‘even keel’, business leaders say

After decades of “boom and bust”, cross-border retail in Newry and Dundalk is on “an even keel”, according to business leaders in the area.

Although price differences on products including alcohol and medicines continue to draw southern shoppers north, Dundalk Chamber of Commerce said most cross-border shopping is now for a day out rather than the expectation of making large savings.

Newry in Northern Ireland and Dundalk in the Republic of Ireland sit just 13 miles apart, roughly halfway along the main Belfast to Dublin corridor.

In the past, both have seen huge waves of cross-border shopping as a result of significant price differentials on key items including fuel, alcohol and groceries.

Paddy Malone from Dundalk Chamber of Commerce has seen his town thrive and struggle over the years. Today Dundalk is bright and vibrant with healthy occupancy, strong footfall and well-presented shops.

Back in 1999 thousands of northern shoppers were packing the County Louth town as border checks relented and price differentials offered huge savings on products such as fuel and alcohol.

A decade later, in 2009, the traffic was headed north to Newry in County Down where savings of up to 40% could be made on alcohol, tobacco and groceries.

At the time it was estimated that ‘the Newry effect’ was costing the Irish Exchequer up to €400m (£351m) a year.

“Today there’s northern cars parked here in Dundalk and there’s southern cars parked in Newry,” Paddy said.

“There’s different products that will be slightly different on one side than the other and people are also always looking a day out in the other town – but there is none of this dramatic pull one way or the other. It’s on an even keel.

“And that’s what Newry Chamber and Dundalk Chamber want. We don’t want this boom and bust, it doesn’t make life easy for either of us. So this stability is exactly what we want.”

That is not to say cross-border shoppers do not remain crucial to both towns’ economies.

Peter Murray at Newry’s Buttercrane Centre said: “We’ve been here for 30 plus years and always through that we’ve had a healthy amount of cross-border shopping.

“We’ve seen an increase over the summer months and into quarter four. That shopper tends to stay longer and spend more.”

For savvy shoppers who use both towns, there is an understanding of what products offer value, and where.

Caitriona McCaughey from Dundalk said: “Before, the north was cheaper but it’s got more expensive. It’s pretty equal at the moment but it depends on what you are looking for.

“Alcohol is cheaper up there. But some grocery items are cheaper here.”

Sean McQuaid from Carrickmacross in County Monaghan agreed people living close to the border keep a close eye on prices on both sides.

“A pint is cheaper in the north, but by the time you change your money over it kind of works out the same,” he said.

“Clothes, tops and jeans especially, are cheaper in Dundalk. I think they can be a lot cheaper.”

Up the road in Newry, Sabrina Devlin was out shopping with her son Cillian. She also goes clothes shopping in Dundalk.

“It’s maybe just for the day out but I think there is better value on clothes in Dundalk and I think there is more stock as well.”

Also shopping in Newry were Dympna and Frank Brady who live in Carlingford, County Louth.

They said many people in the border area still keep two purses, one for Sterling and a separate one for Euros.

“We have two,” Dympna said.

“And before we leave the house we check we have the Sterling one if we are going to Newry and we also enjoy going into Dundalk.”

Frank added: “Maybe for drink it’s cheaper in the north but other than that you wouldn’t be driving a big distance because there isn’t a big difference anymore.”

That is not to say significant savings cannot be made on certain products.

Pharmacist Aine McNulty estimates that up to 40% of customers coming to Newry’s pharmacies are from south of the border.

“We’ve shops in Newry, Armagh and Aughnacloy – border towns and we’ve noticed a lot more people crossing the border – maybe up to 40%,” she said.

“That’s increased over the past 18 months from 20%. It’s private prescriptions.

“We have people maybe travelling from Kerry for treatment for migraines and they are saving maybe a third of the cost. And they could be paying maybe £300 for them here.

“We’re also seeing people coming with prescriptions for weight loss medication.”

But back in Dundalk, Paddy Malone is content.

“I’ve been shouting about this town for many years and you and I have had chats before and they haven’t always been too great – but now is a different situation and it hasn’t been at the expense of Newry and that pleases me greatly.”