Fewer Shoppers are "Heading North"

 
Research company Experian have recently announced the findings of a study they carried out questioning the widely held belief that there has been a recent ongoing exodus of shoppers from South of the border towards the North.

The Journal of Cross Border Studies in Ireland said that figures showed shopping trips reached "very modest levels", except among people who lived in the border region, where 41% went north. "For all other regions in Ireland the average number of shopping trips per household was less than or equal to one per year," the study said, noting that 78% of people in the South said they had no intention of going North to shop this year. The impact on the Irish Economy caused by those who choose to travel over the border for purchases was also not as much as many may have expected.

The study estimated that southern shoppers spent around 435 million Euro(approx £381m) in Northern Ireland during the year to April 2009. This translates into a total loss of around 70 million Euro in VAT and excise duties, representing less than half a percent of all of the total. 

However, money also came in the opposite direction, with cross-border tourist spending undoubtedly benefiting the Republic more than Northern Ireland. Also, the cost to the UK Government of Northern Irish drivers filling up on petrol in the Republic is estimated to have been over £20m (Euro 23m).

"It is possible that some of those southern shoppers who have been visiting the North to take advantage of the weaker pound and the lower VAT rate are now looking for value for money closer to home," said Experian head of sales Paul Slevin.