Cavan retailers winning war as shoppers choose local

Retailers in County Cavan are reporting an increase in consumer spending in recent times of between five and ten per cent. And with the All-Ireland Fleadh Cheoil to be staged in the county next week - with an estimated spin off to the economy of €25m - things are really looking up. The renewed optimism comes as figures released in the past week show that retail spending nationally in May was up by an average 3.5%, compared to May 2009. The increases recorded were even greater in the Border region, which had been hammered in recent years by the recession, weak sterling and cross-border shopping. However, it appears that the tide is now turning and business sources in Cavan town, Bailieboro, Belturbet and Ballyconnell all report an increase in consumer spend. The Cavan Chamber and other centres in the Border region are hoping that this is the start of an upward trend and that they can afford to breathe a sigh of relief that the worst is over. However, they all concede that there is no room for complacency and businesses here must be innovative and competitive if they are hold on to market share in the face of quite tough opposition from large multiples in the North like ASDA and Sainsburys. Cavan Chamber president, Pacelli Lynch, acknowledges that the county town has been busy since the summer festival in mid-June. "People are coming to the conclusion that we have hit the bottom and you have to go forward," he suggests. The slight but perceptible increase in business is also taking place in other towns such as Bailieboro and Cootehill. Aidan Clarke, chairman of Bailieboro Traders Association, accepts that there is increased activity at retail level over these past few weeks. While he is cautious about saying that it is the start of a trend, he does believe that a campaign of special offers initiated by traders in Bailieboro has paid off. According to Padraig Donoghue, proprietor of Supervalu in Ballyconnell and Centra in Belturbet; while there is not a dramatic increase in customer footfall, the consumer spend has definitely increased. He reckons that there is a three per cent increase in both his stores year-on-year with the Ballyconnell store registering a ten per cent upsurge in recent weeks and the Belturbet one recording five per cent growth. "The loss of footfall that took place at the height of the cross-border shopping has now thankfully been reversed with both our stores recording a steady but healthy level of customer sentiment over the past four to five months," states Mr. Donoghue. Leading business agencies this week conclude that the boom in cross border shopping is finally drawing to a close. Statistics from the business information company Experian show that year-on-year, footfall in Northern Ireland decreased by 10.5% in April and 7.5% in May. At the height of the two-year cross-border shopping boom, it is calculated that 250,000 Southern householders were shopping in Northern Ireland, spending around £7m there in 2008. The strong euro was the main reason for the trend, coming close to parity with sterling in late 2008. However, in recent times sterling hit a 19-month peak against the euro meaning that goods were no longer as cheap in Northern Ireland as previously. In this region most of the cross border shoppers headed to ASDA in Enniskillen and this week we contacted the store about the fall off in customers from the Republic. Peter Beckett, store manager, conceded that there was a ten to 15% fall off in business comparing this year with last year. "However, last year was an exceptional year and there is still a phenomenal level of cross-border shopping with us. While these customers wouldn't be buying as much bulk, the numbers are still very high. Customer numbers are slightly down but we are still having a strong year," says Mr. Beckett. The ASDA Enniskillen store manager revealed that customers from the Republic accounted for 50% of their total in 2009 and this had fallen back to 35%/40% this year. He said that the main drivers for shoppers from the Republic were wines and spirits, health and beauty products, especially baby requirements. Despite the reduction in prices down south, he claims that customers from the Republic can still save 20% on their grocery bill by shopping with them. It is a contention that supermarkets and retail outlets from the Republic would now take issue with. • Full story in this week's Anglo-Celt