RGDATA, THE group representing family-owned grocery stores, has sought an emergency meeting with Minister for Enterprise, Trade and Employment Mary Coughlan over sharp falls in its members' business caused by cross-Border shopping, writes Paul Cullen, Consumer Affairs Correspondent
It says retailers in Border counties in the Republic are facing a crisis because shoppers have taken their custom northwards, lured by the promise of cheaper prices. Shops in towns close to the Border have lost up to half their business, it claims.
Director general Tara Buckley says there are significant concerns within the trade about job losses and potential shop closures.
"This is a serious threat to retail outlets in Border areas and needs urgent government action," she said.
"Retailers in Border areas feel that the Government has one hand extended seeking extra taxes, levies and higher rates, while the other hand is throttling their ability to compete with businesses just 10 miles up the road due to Government-imposed tax increases."
Bernard Farren, a convenience store owner in Buncrana, Co Donegal, told The Irish Times that west Donegal was decimated by the flow of shoppers spending their money in Derry and Coleraine.
"Big stores in Letterkenny are so empty, they've become frightening places," he said. It was "absurd" that the Government was increasing the VAT rate when consumers were retreating from spending.
Meanwhile, the Irish Farmers' Association claims there is little difference in food prices north and south of the Border, while the cost of shopping in the North is much dearer for people living in the Republic when the costs of travel and subsistence are taken into account.
An IFA survey of supermarkets in Dublin, Dundalk and Newry found that less than €2 separated the price of a basket of staple food items in the three stores.
The goods cost €37.99 in Sainsbury's in Newry, €39.75 in Tesco in Dundalk and €39.60 in Dunnes Stores in Dublin.
According to the IFA, the overall cost of travelling from Dublin to buy the goods in Newry is €67.09 when the costs of petrol, food and tolls are included.
"There seems to be a growing misconception that consumers who purchase food items in the North are making significant savings," said IFA countryside chairman David Wilkinson.
"This survey proves that not only are consumers saving no money, but petrol, tolls and other journey costs mean they are in fact losing greatly.
Shoppers would have to spend in excess of €1,000 on groceries alone to offset the actual travelling and other costs associated with shopping away from home."
Meanwhile, RGdata has also said retailers want a bigger margin on the sales of National Lottery tickets. At present, they get six cent for every €1 spent on the Lotto, but the organisation has written to the National Lottery seeking a bigger cut.