Donegal's largest town, Letterkenny, is bracing itself for a record-breaking Christmas on the retail front. It lies 20 miles from Derry with its population of just over 100,000, and is reaping the dividends of the favourable exchange rate.And not only are there an increasing number of Northerners making the short trip across the Border, but Letterkenny is also cashing in on the fact that fewer people from Donegal are going the other way.For many years Donegal shoppers flocked to Derry, Strabane and Enniskillen for cheap drink and petrol. Indeed, the vast Foyleside Shopping Centre in Derry, built less than a decade ago, proved to be a major attraction. But now Letterkenny is rapidly emerging as a major retail hub for the north-west region. And, as local councillor Dessie Larkin notes, it certainly is a case of changed times. "Not so long ago you went into Derry to pick up the bargains. Now they're coming out here.
Everysecond car on the main street has a Northern registration."The strengthening of sterling in recent years has come at a time when Letterkenny has seen an increase in the number of bigname retailers coming to town, ranging from Boots to McDonalds, and more recently the German no-frills supermarkets, Aldi and Lidl, which must battle for a share of the grocery market along with Dunnes Stores, Tesco, SuperValu, Centra and Vivo.Many shops in the town display signs indicating what exchange rate is on offer. This varies considerably. Heaton's department store in the Courtyard Shopping Centre has, on occasions, offered up to 40p in the pound on sterling as a marketing ploy."The increase in business over the past year has been phenomenal," says Heaton's manager, Ronan Byrne. He estimates it is up between 30-40 per cent, and that's before the Christmas rush.The massive difference in petrol prices between the Republic and the North is also a factor in attracting shoppers to Donegal. Northern motorists filling up in the Republic are saving around £12 on a typical 10gallon fill. The journey pays for itself.However, this boom, while welcome, presents a somewhat false picture, cautions Michael Boyd, president of Letterkenny Chamber of Industry and Commerce."We can remember the days when people from west Donegal bypassed Letterkenny to go and shop in Derry. We are not really seeing the benefits of the tiger economy. What we are seeing isthe effects of the differential between the punt and sterling. It would be remiss of us to become complacent. We all know how volatile currencies can be."While Letterkenny is getting the lion's share of Northern shoppers in Donegal, towns such as Ballybofey, Donegal town, Ballyshannon and Bundoran are also benefiting.Perhaps the only downside has been the increase in the volume of traffic, and consequent hold-ups. Car-parking is also an issue in some towns. However, compared with Dublin, these problems are mild. Donegal's retailers are set for their busiest ever Christmas, helped in no small way by the favourable exchange rate.