Dundalk adopts sterling in move to lure North’s shoppers

Dundalk is determined to benefit from the debt crisis.

The Louth town, where recession has left about one in five stores vacant or for sale, is erecting 3-metre billboards with a message for customers in the North 8km away reading: “Your Pound Goes Further in Dundalk.” Parking meters and shopkeepers already accept sterling.

“I’d rather it wasn’t this way,” said Paddy Malone, head of Dundalk’s chamber of commerce. “But it’s tough times, really tough. Sterling will help.”

The euro has slid 10% against sterling during the past 12 months as European leaders struggle to contain the sovereign debt crisis. Ireland’s economy has shrunk about 15% since 2008, the worst recession in its modern history.

For Dundalk, where the jobless rate is around 19%, the weaker euro is proving a boon as cash-strapped Northern Irish travel to buy cheaper goods.

“We’ve seen an uplift in Northern customers over the past couple of months,” said Laura Corry, manager of Sally West, a fashion store on Clanbrassil St offering 50% reductions. “It’s definitely because of the euro. It’s great. Things have been tough here for a long time.”

Irish retail sales have fallen by almost 20% since Jun 2008.

In Dundalk, a town of 35,000 people centred around a square which was redesigned in 2011, charity stores selling used goods sprung up as retailers went out of business, according to the town’s commercial manager, Andrew Mawhinney. Small traditional Irish pubs sit next to derelict store units, with retailers offering as much as 70% off to lure shoppers.

“There has been a notable difference with Northern Ireland shoppers over the past couple of months,” says Harry Trainor, manager of Marshes, the town’s main mall. “It’s probably up around 7%. It all helps.”

Still, not all of Dundalk’s retailers are confident of benefiting from the euro’s decline.

“Even with the drop in the euro we haven’t seen much of a change in trading,” said Jacqueline McParland, whose shop, The Gift & Art Gallery, sells giftware and items such as scented candles. “It’s probably as tough as I remember it. I’ve been here for 20 years. Of course, any extra help is welcome.”