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IRISH CONSUMERS ARE flocking to Northern Ireland to purchase products and services in the run-up to the Christmas season.
Shoppers south of the border have been taking advantage of some post-Brexit weakening of sterling against the euro, according to behaviour tracked in a survey conducted at the end of October.
26% of those Irish adults surveyed in a nationwide poll said they have travelled or intended to do so to the UK or Northern Ireland in the next three months (November, December, January) to purchase a product or service.
Some Northern Irish shopping centres have noted an increase in the number of Republic of Ireland-registered cars parked at their sites, and the survey confirms the intention of shoppers to seek out deals based on generous exchange rates. (Although it is worth noting that in the wake of the Trump victory in the US presidential race, sterling regained some ground as market concerns moved further afield.)
The majority of those who said they would look to Northern Ireland or the UK for bargains when surveyed by iReach on behalf of media agency MediaCom said they would do so to buy Christmas presents (63% of those planning to travel).
Other popular purchases in the sterling zone included clothing (60% of those planning a purchase), alcohol (43%) and groceries (40%). Personal electronics, cosmetics and toys figured slightly lower down on the list.
These shoppers tend to plan out their trips carefully. They said that they compare product prices in euro and sterling online before targeting which purchases to travel for. They then research which sterling outlet has the best deal in that product before travelling to buy, a phenomenon known as ‘reverse-showrooming’.
And in a finding that should be of concern to Irish companies, almost two-third of Irish shoppers – 64% – said that they had shopped online with non-Irish retailers. A third of these had paid in sterling. Half of those surveyed agreed with the statement that ‘paying in sterling online lets me get the best possible price’.
MD of MediaCom Ireland, Ian McGrath, noted: This is alarming when you consider the larger online market, where more people are continuing to spend more money, and spend more often.”
Retail Ireland had warned in mid-August of trends that had emerged in Irish consumer behaviour after the decision to Brexit, which hinted at a threat to Irish outlets from the lure a weaker sterling. A devaluing of sterling, RI stated, “raises the spectre of a potential return to cross-border shopping”.
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So a no-deal Brexit would be bad for the economy but so would an orderly Brexit. And does anyone really believe that inflation is only 1 percent per annum in this country? I assume the Central Bank guy is not renting accommodation or paying crèche fees.
@Earth Traveller: yes…inflation is low. Are any of your day to day products in a basket of goods going up?
@Earth Traveller: yes…inflation is low. Are any of your day to day products in a basket of goods going up? Competition is driving retail prices down. The majority of people own their homes and interest rates are dropping…
@joe: yes they absolutely are
More tax from FFG …
Our central banks “expert” analysis seems to be to look at the current number and then add a little bit onto that!
And aren’t we all so lucky that FFG never brought us to the brink of recession!
Its always somebody else’s fault, brexit, or the financial crash, or the butterfly that flapped its wings the wrong way in brazil, its never the fault of the useless idiots in dail eireann.
We need to stand up stop thinking about how bad it will be without England financially and start thinking about Irish unity and how it will benefit us as a nation of course if won’t benefit us straight away but a few years down the line it will. Those figures the central bank send out I would take them with a grain of salt .Time to stop moaning and get on with it.
@Donal Carey: what if the vote goes the other way ,what then and it is likely to do that as the uncertainty that is around the corner
@Donal Carey: we really don’t want or need that money pit!
@FlopFlipU: Negative everything points to a United Ire and it’s about time
Once northern Ireland see how britain has betrayed them, it will a work itself out.
What will they use to scare us with when its all sorted.
Is this the same regulator that predicted a soft landing at the height of the Celtic tiger?
The banks will be a great help to struggling people. They give you an umbrella when the sun is out, then take it off you when it’s raining
Scare mungering again like 12 years ago
@Joseph Molloy:
You may have missed it, but 12 years ago the proverbial muck hit the fan in this country like never before and we’re still suffering the consequences. Where exactly do you see the scaremongering?
Brexit won’t happen. English are stupid alright but not economically suicidal. London is the powerhouse and voted remain. Money talks.
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