Miconex reveals Ireland’s ‘shop local’ revolution gathers pace with €7 million cash injection into shopping districts in 2023

Local gift cards are driving significant spend in towns and cities across Ireland, says fintech Miconex as it shares key insights from its local gift card programmes around the world.

Sales in Ireland across Miconex’s Town & City Gift Cards programs in Sligo, Ballinrobe, Drogheda, Waterford, Carndonagh and Letterkenny totalled over €7 million in 2023. In 2024, demand for shop local continues to rise with local gift card sales in Ireland up 62% on 2023, to date.

The number of places with a local gift card programme backed by Miconex technology topped 200 for the first time in 2023. 26 new places, including Waterford, launched their own local gift card in 2023, capitalising on the global demand for gift cards and giving places a means to divert online spend back to independent and national bricks and mortar businesses across sectors.

Miconex 2023 data shows that 90% of people spend over the value of the gift card on redemption globally, typically 65%. In Ireland, 33% spend 100% – 125% more than the value of the gift card on redemption. 71% of those who overspend see their gift card as ‘free money’, spending more than the gift card value as a result.

The range of independent businesses which accept Miconex’s local gift cards – usually alongside a range of national brands – makes the cards unique in the sector. A typical 50%, and up to 100%, of its local gift cards are redeemed with independent shops, restaurants and venues.

2023 also saw a marked move by organisations towards local gift cards for staff rewards and incentives, plus charities using the cards for service user support.

Colin Munro the managing director of Miconex said the appetite for local gift cards continues to grow across Ireland: “Receiving a local gift card is the first step in an exciting journey of discovery for recipients. Taking into account the typical 65% and up to 125% overspend, the impact of local gift cards in 2023 was significant and this is a trend that will continue.

“Globally in 2023, 96% of people said they are keen to support local. The mix of independents with national brands, across multiple sectors, makes our local gift cards appealing for both consumers and organisations as the ultimate shop local gift card. In 2024, we’ll be continuing to work alongside our places to drive even more spend into Irish towns and cities.”

Town & City Gift Card programmes in Ireland attribute their success to organisational and community support for local:

Trevor Connolly, chief executive officer at Love Drogheda BID said: “We have been delighted with the sustained growth of the Love Drogheda Gift Card with sales of over €500,000 since inception and over 220 participants to give a high level of variety of shopping options to the user of the cards. This has been an excellent programme to help retain local spend and sustain local employment.”

Deirdre Bradley, chairperson of the Carndonagh Traders’ Association, said: “The Carndonagh Gift Card is the most impactful project we’ve undertaken as a Trader’s Association and has been hugely beneficial for businesses in the town. I think the success of the card is thanks to the support we’ve had from our community, from people buying the cards as gifts to employers using the card for staff rewards and incentives. It’s a gift card that offers choice and works for all ages and interests. Our gift card has kept many businesses in Carndonagh open.”

Mark Cunningham, Love Sligo programme coordinator, said: “The success of the Love Sligo Gift Card materialised for a number of key reasons, CEO of Sligo BID Gail McGibbon identified a gap in the market for a zero percent multi use gift card which resulted in a successful partnering with Miconex, this was followed by the deliverance of an intense locally focused marketing campaign highlighting the key economic benefits that the Love Sligo Gift Card brought to the town.

“As campaign momentum gathered in the lead up to Christmas, the decision of 100+ local companies to choose the Love Sligo Gift Card as their employee bonus of choice combined with a huge surge in domestic purchases amid mass local awareness creating ideal market conditions which led to sales revenues far beyond all expectations at the outset of the campaign. We now look forward to the Love Sligo Gift Card bringing many years of economic benefit to local businesses.”

Fionnuala Rabbitt, president of Letterkenny Chamber in Ireland, said: “Each year since our ShopLK gift cards were launched, we have been delighted with the increasing sales levels. Corporate sales are a huge part of the story and the number of corporate customers, as well as the amount they spend, continues to increase.  Our corporate customers recognise the variety the ShopLK Gift Card offers employees and, very importantly, the contribution it makes to the local economy.”

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