Retailers call for further online grant aid on back of Amazon expansion

Industry group Retail Excellence says more government support is needed for retailers looking to increase their online selling capabilities

The Government has been urged to roll-out further online grants to help support the e-commerce capability of independent domestic retailers in light of Amazon announcing a significant expansion to its Irish operations.

The e-commerce giant confirmed plans for a massive 630,000sq ft distribution and delivery depot to service customers across Ireland and the rest of Europe, earlier this week.

The facility, at the Baldonnell Business Park in Dublin, will employ 500 people and will be followed by a second “delivery station” opening in Dublin this autumn. 

Between them, the two new depots will boost Amazon’s Irish-based workforce to more than 5,000 people by the end of next year.

The Government, through Enterprise Ireland, has provided grant support, during the pandemic, for retailers looking to increase their online selling capabilities. 

The most recent round, offering a total €5m to the sector, was rolled out in May, but another round has been hinted at for later this year.

Industry group Retail Excellence said the financial support has helped, but more government support is needed.

Managing director Duncan Graham said Irish consumers will continue to shop local if given the opportunity.

He said 70% of money spent online by Irish consumers in the fourth quarter of 2019 was going overseas, but that amount had dipped to 60% by the end of the same period last year.

“Irish consumers have embraced shopping locally and I don’t see why that would change,” he said.

Mr Graham said the world’s biggest e-commerce company enhancing its delivery capability here will pose a fresh challenge to domestic retailers after an already extraordinarily difficult time. 

But, he said existing parcel delivery partners should be able to match Amazon delivery times, while “the jury is still out” if it will see Amazon charge cheaper prices.

Reporting: The Irish Examiner