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Business leaders in the Newry and Dundalk region say that cross-border shopping has now reached a stable phase following many years of fluctuating trends. Although price differences persist in goods such as alcohol and medicines, most visitors from the south now come north more for the experience of a day out rather than expecting to find substantial savings. Newry, located in Northern Ireland, and Dundalk, in the Republic of Ireland, lie just 13 miles apart along the vital Belfast to Dublin route, both having historically experienced significant surges of cross-border trade driven by varying costs for essentials like fuel, alcohol, and groceries.
Paddy Malone, representing Dundalk Chamber of Commerce, has witnessed the town’s ups and downs through the years. Currently, Dundalk boasts a vibrant atmosphere with well-occupied shops and strong foot traffic. Back in 1999, relaxed border checks coupled with price advantages drew thousands of shoppers from Northern Ireland to Dundalk, focusing on deals for fuel and alcohol. By 2009, however, the tide had shifted as Newry attracted more shoppers due to savings of up to 40% on products like alcohol, tobacco, and groceries, a phenomenon referred to as “the Newry effect,” which reportedly cost the Irish Exchequer up to €400 million annually. Paddy points out that nowadays, cars from both the north and the south can be found parked on either side of the border. He explains, “There’s different products that will be slightly different on one side than the other and people are also always looking a day out in the other town – but there is none of this dramatic pull one way or the other. It’s on an even keel.” He adds, “And that’s what Newry Chamber and Dundalk Chamber want. We don’t want this boom and bust, it doesn’t make life easy for either of us. So this stability is exactly what we want.”
Despite the more balanced flow of shoppers, cross-border trade remains critical to both local economies. Peter Murray, from Newry’s Buttercrane Centre, reflects on their long-standing relationship with cross-border shoppers: “We’ve been here for 30 plus years and always through that we’ve had a healthy amount of cross-border shopping. We’ve seen an increase over the summer months and into quarter four. That shopper tends to stay longer and spend more.” Locals who shop on both sides of the border are familiar with where specific products offer better value. Caitriona McCaughey from Dundalk observes how the price gap has narrowed: “Before, the north was cheaper but it’s got more expensive. It’s pretty equal at the moment but it depends on what you are looking for. Alcohol is cheaper up there. But some grocery items are cheaper here.” Similarly, Sean McQuaid from Carrickmacross highlights the subtleties in pricing, saying, “A pint is cheaper in the north, but by the time you change your money over it kind of works out the same. Clothes, tops and jeans especially, are cheaper in Dundalk. I think they can be a lot cheaper.”
Among shoppers making the most of what each town has to offer are Sabrina Devlin from Newry and Frank and Dympna Brady from Carlingford, County Louth. Sabrina credits her choice of shopping locations partly to value and stock availability: “It’s maybe just for the day out but I think there is better value on clothes in Dundalk and I think there is more stock as well.” The Bradys, who maintain separate purses for Sterling and Euros, confirm that the price differences have levelled out somewhat. Dympna says, “We have two. And before we leave the house we check we have the Sterling one if we are going to Newry and we also enjoy going into Dundalk.” Frank adds, “Maybe for drink it’s cheaper in the north but other than that you wouldn’t be driving a big distance because there isn’t a big difference anymore.” Pharmacist Aine McNulty from Newry notes that a significant portion of pharmacy customers come from the Republic, with up to 40% of clients crossing the border seeking private prescriptions. She observes, “We’ve shops in Newry, Armagh and Aughnacloy – border towns and we’ve noticed a lot more people crossing the border – maybe up to 40%. That’s increased over the past 18 months from 20%. It’s private prescriptions. We have people maybe travelling from Kerry for treatment for migraines and they are saving maybe a third of the cost. And they could be paying maybe £300 for them here. We’re also seeing people coming with prescriptions for weight loss medication.”
Despite past challenges,
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