An Post will sell gift vouchers for 500 high-profile Irish businesses through post offices across the Republic.

The Gift Voucher Shop venture will be operated in conjunction with Total Shopping Convenience, a company established for this purpose by former Fianna Fáil senator, Mr Michael Dawson, and chaired by former Smurfit chief executive, Mr Paddy Wright.

The initial investment in the project is €2 million, with €800,000 of that provided by An Post. The voucher service, which is to be available through 1,000 post offices, will allow consumers to purchase vouchers for outlets such as Arnotts, Brown Thomas and Clerys over the counter in almost any location in the State.

Customers will pay a service charge of €1 per transaction, regardless of voucher size, with the Gift Voucher Shop making the majority of its revenue through commission payments from participating companies.

Other businesses taking part include sports shops, hotels and hairdressers. Voucher sales are also available online at www.giftvouchershop.ie or by calling 11850.

Total Shopping Convenience estimates that the Republic's gift voucher market is worth €190 million annually. The Gift Voucher Shop will target 15 per cent of that market within its first year of trading, with a view to growing it by a further 15 per cent.

"We only need to capture a small percentage of the ultimate gift market to be a major success," said Mr Wright yesterday. He added that the company was also developing a similar venture for the corporate market that would cater for areas such as staff incentive schemes or customer loyalty programmes.

The Gift Voucher Shop currently employs 14 staff in Swords, Co Dublin - a number that it hopes to double before the end of the year.