Cross-border shopping on the rise
A new report by Goodbody Stockbrokers has revealed a rise in cross-border shopping, driven by the weakened Sterling
4 November 2016
Weak sterling, induced by Brexit, has led to an increase in cross-border shopping, according to a new report by Goodbody Stockbrokers.
The Irish Times reports that a study of traffic flow across the borders provides “the first tangible evidence” of Brexit’s impact on Ireland. A notable increase in traffic has coincided with the Pound’s slide, beginning with the shock vote to leave the EU by British voters in June.
In the year to June 22nd, traffic volume crossing the border grew by 6%, the report says, but since 23 June to date, the day of the Brexit referendum, traffic volumes have surged by 9% compared to the same period last year.
The report also cites a 29% increase in traffic volumes going north on Saturday mornings, while there was an increase in traffic going from north to south at 6pm on Sunday. These points suggest that shoppers are making overnight and day trips to Belfast.
“The fall in the value of sterling is likely to be playing a prominent role in increasing the flow of both tourists and shoppers to Northern Ireland,” the report said.“The benefits to Northern Ireland may be the Republic’s loss.”
The report also noted that while consumer spending impact would be modest in the Republic overall, the change in pattern would have a strong impact on businesses along the border.