Why Ikea shoppers will never stop trips to North
Thursday September 10 2009
Irish Ikea consumers are still heading North to bag home-interior bargains.
Despite opening a Dublin branch of the retail store, many shoppers are still seeking better value in the Belfast-based store.
The Ballymun-based Ikea sees approximately 10,000 to 15,000 people visit daily, but many more are travelling North where items can be cheaper.
For example, the price of a the Swedish retailer's classic Billy bookcase has been compared in 38 countries, as far apart as Denmark and Malaysia.
impact
The bookcase costs €39 in Ireland and is priced at €33.97 in Belfast, which is 13pc cheaper.
Ikea claimed yesterday that factors such as VAT, wage costs, energy and transport "impact on the cost of delivering that product in the local market".
A recent study was carried out by Professor Barry Smyth from UCD which showed that Irish Ikea customers are paying an average of 8pc more than in Belfast.
When studying Ikea, Prof Smyth noted that the 8pc price difference could largely be explained by the difference between our 21.5pc VAT rate and the 15pc rate in the North.
Karla Brennan, a devout Ikea customer, said: "It's still worthwhile going North if you're from Dublin or above.
"If you're from Kerry or Limerick, then Dublin is probably your best bet.
"If we hadn't already gone up North to buy things before the opening in Dublin, even with the new store we probably still would.
"Once the novelty wears off, people will go back North again. Smaller things are convenient, but new homeowners, who will be buying a substantial amount, will be heading up there."
Lisa O'Brien, marketing manager for the Ballymun outlet, said: "We don't compete with other stores, we operate as individual branches."
But despite the trek to the North, sales in the Ballymun branch are expected to continue their steady growth.
Now that customer catalogues are available, the already incredibly busy superstore is expected to see a further increase in business.
hnews@herald.ie
- Caitlin McBride
