A shop local initiative in Letterkenny, Co Donegal achieved sales of more than €7 million last year – a 23% increase on 2023. The significant increase in sales followed the introduction of a digital gift card that can be used for 'tap to pay' and an increase in corporate sales.
Letterkenny Chamber President Claire McDonough said that although they have had year-on-year sales increases since starting the programme in 2004, they did not expect this level of success.
She said corporate sales continued to increase as businesses chose the ShopLK Gift Card as a reward for their employees. The digital version of the local gift card can be added to digital wallets, enabling ‘tap to pay’ and ‘load this card’.
New digital technology for corporate organisations introduced in the latter part of 2024, allowed organisations to send gift cards to multiple recipients at once, immediately or on a future date.
Ms Mc Donough added: "Corporate sales are only part of the success story. As ShopLK Gift Cards are only redeemable in over 260 outlets in Letterkenny, this brings profit to the town and supports local jobs.
"ShopLK is all about supporting local shopping. Sales of this level show that the message has gotten through. Customers love the variety and the support it offers in their favourite outlets."
The Letterkenny Chamber runs the ShopLK Gift Card with support of the Department of Social Protection’s Community Employment Programme through which the Chamber’s front-line staff are employed.
Miconex Ireland, a fintech company who provide Mastercard-backed town and city gift card programmes across Ireland said Letterkenny was the top selling local gift card.
Letterkenny Chamber CEO Toni Forrester said the improved online service has helped increase online sales.
"This is the biggest town scheme in Ireland and we appreciate our customers who have bought cards in their thousands and the many businesses who use ShopLK as their preferred employee reward," he outlined.
Miconex Managing Director Colin Munro said gift cards "tend to be spent quickly with 42% [of consumers] spending within 3 months".
Donegal Town Business Focus Group switched from paper shop local vouchers to a digital and physical gift card with Miconex in November 2024, achieving sales of €350,785 within a two-month period.
Raymond Rooney from the Donegal Town Business Focus Group said it has been a resounding success with the transition from a paper-based vouchers reducing "operational tasks".
He said: "As an added bonus redemption rates are already excellent meaning money has been spent and will circulate around our community."
