The disparity between the Irish pound and sterling continues to have an effect on retailers here, though good returns mean the stores are sharing the brunt with the consumer. The Irish pound has dipped to as low as 73p to the pound and the differential looks likely to stay - at least in the short term.
While British-sourced goods are generally more expensive, they don't reach the levels of a 27 per cent price difference on the shop floor. Irish retailers are good customers just now and can generally negotiate deals whereby the goods are heavily discounted by the sterling wholesalers, or the deal is concluded in euros.
Another side effect of the weak pound is the continuing influx of shoppers from sterling areas who are helping to fuel a high street boom.
Marks & Spencer is one of the major UK chains with flagship stores here. Indeed, the Dublin stores are among the group's most successful operations, and are particularly strong in the childrenswear and homeware departments. Not wanting to rock the boat, M & S is alert to currency fluctuations. "We still give a very good deal," says the company's food and textile manager, Jonathan Bradburn.
The company introduced separate prices within Ireland three years ago, but the emphasis is on reflecting the local market rather than pricing themselves out of it. While the disparity in prices between here and the UK averaged about 7 or 8 per cent earlier this year, it is now nearer 10 per cent on account of the ongoing currency fluctuations, which means the company is picking up the tab for much of the difference.
Jonathan Bradburn points out that the company is particularly anxious about sourcing products locally. This especially applies in the fresh food department, so that goods can be bought and sold in the same currency.
Debenhams, the major British store which opened its only Irish store in the Jervis Centre, initially carried the same price tags as in the UK, therefore providing especially good value. However, the policy has changed in recent times with the prices differing by about 10 per cent between the Irish and British store, according to one member of the staff who was also able to quote the going rate for the pound for sterling for that day.
Oasis is a British high street chain of fashion stores aimed at the younger women's market. They have over 100 stores in the UK, and around a dozen in the south of Ireland. A floor manager in a Dublin store reported that the difference in price averages 10 to 15 per cent. However, clothes are frequently discounted here, with mid-season sales leading to reductions which can bring prices below the sterling level.
Other British companies also pass on the currency difference. More up-market stores such as Karen Millen and Whistles cannot afford to carry the currency differential and differences in prices can be up to 20 per cent. These companies have a high profile in Britain and it is only with a booming economy here that they are managing to get away with the high price tags in Dublin.
Kookai prices are up about 15 per cent here also. Likewise, with Jigsaw and Monsoon, with both stores also tending to have discounted rails as well.
The Miss Selfridge chain of stores prices goods under £10 the same on both sides of the water and the Border. But something selling for £15 in the UK, works out at £20 here; similarly, £20 in the UK, translates as £25 here. Heavily discounted sales make the prices more attractive here but they would be discounted at the same time elsewhere as well. Companies like the Dolcis shoe company also play safe. The company has a concession within Clerys. Again prices are increased to take account of the sterling difference. An evening bag cost £17.99. Open it up and there is a sterling price of £14.99. Grit your teeth - and grin and bear it. On the other hand, concessions, such as Max Mara in Brown Thomas, are trading more comfortably since their Italian clothes come from a euro zone.
Irish stores are tending to spread the net wider. A spokeswoman for Clerys said the company has a policy of sourcing goods not just from the UK but throughout the euro zone. But goods bought in sterling are often discounted as source, she said, adding that they also attempt the "forward-buying" of currency so the company can plan more easily.
Store buyers in Clerys are given special training in negotiating deals when buying in sterling, and consequently goods are often heavily reduced at the wholesale stage.
Along with other companies, the store also reported "a dramatic increase" in the numbers shopping here from the North of Ireland. This is helping to boost turnover and profits can help offset the currency disparities without the need to pass on the full cost to the consumer.
Other companies, such as Arnotts, have negotiated a range of price contracts in euros while many British suppliers have been prepared to absorb much of the currency differential in order to keep a foothold in the lucrative Irish market.
Retailers cannot afford to increase prices too much. Consumers have become all too adept at scratching beneath the Irish price to find the sterling price. Currency variations could in the long term shift the other way and it is the Irish consumer on whom they will have to depend.
