Minister English announces €5.3m in grants to retail sector through COVID-19 Online Retail Scheme administered by Enterprise Ireland

9th November 2020

145 retailers will receive funding via the scheme which aims to drive Irish retailers’ online sales at home and abroad

70% of successful applicants located outside Dublin

Minister of State for Business, Employment and Retail at the Department of Enterprise, Trade and Employment, Damien English TD, has today announced the successful applicants approved for funding through the second call of the Covid-19 Online Retail Scheme, which is administered by Enterprise Ireland. 145 retailers have been approved €5.3M in funding as part of the scheme, which is targeted at retailers who already have an online presence to strengthen their online offering and enable them to reach a wider customer base.

The scheme, which was announced in the Government’s July Jobs Stimulus package, received 204 applications. 70% of the successful applicants are located outside Dublin with 102 retailers from these regions approved for funding.

Under this Covid-19 competitive call, the successful applicants will receive funding ranging from €16,000 to €40,000 to strengthen their online offering. The average grant value is €36,700 and covers up to 80% of project costs.

Minister Damien English TD said:

I was very pleased by the positive response from the Irish retail sector to the second call for applications under the Covid-19 Online Retail Scheme as Government continues to help Irish businesses deal with the impact of the pandemic. The economic value of operating in the e-commerce space and its convenience for customers has come to the fore in 2020 and this scheme aims to help companies improve and maximise digital sales prospects.

We know that consumers are keen to support their local retailers, even when shopping online, and these grants will help businesses to really maximise the opportunities in the e-commerce market. Of course, this market is not limited by geography and physical location and we know that Irish businesses with strong online resources also have their eyes on the international marketplace.

The Government continues to focus on helping businesses to get back on track in the coming months and as more of our workplaces and businesses can reopen in the coming weeks, in line with public health guidelines, we will do everything we can to support retailers in creating safe shopping spaces, in store and online, for customers and staff.”

Stephen Creaner, Executive Director, Enterprise Ireland added:

The Covid-19 Online Retail Scheme has proven to be a very attractive scheme for retailers and it’s clear that Irish businesses are keenly aware of the growing e-commerce opportunities both at home and abroad for online retail. They also understand the necessity of operating an updated and efficient online sales platform that complements their physical stores.

Grants through this scheme are being used by retailers to upgrade their systems to improve their digital presence and to become more competitive in the virtual marketplace. This is helping to broaden their customer base and grow sales with some companies reporting that they are recruiting extra staff as result.

Ultimately, retailers who are investing in their online presence now are also strengthening their offering to help deal with the uncertainty and challenges that lie ahead.”  

Conor Moran, Online Marketing Manager, The 1933 Furniture Company commented:

We are delighted to be approved for the Covid-19 Online Retail Scheme. Our customers are spending an increased amount of time online, so the digital landscape is becoming an ever more important channel for us. We believe that the grant support will offer us the opportunity to create a new online platform that complements and integrates with our existing business model.”  

The Online Retail Scheme was open to Irish-owned retailers with a physical store and a pre-existing online presence who employ 10 or more people.  In addition, the scheme focuses on retailers predominantly selling products to individual consumers as opposed to those selling mainly to business customers. Grants can be used to fund fees for service providers, develop and implement a digital strategy supported by in-house training and enhance the retailer’s website.

The scheme is complementary to the €2,500 Trading Online Vouchers, provided through the Local Enterprise Offices for companies with up to 10 employees.

Enterprise Ireland will be opening a new call under the Covid-19 Online Retail Scheme in early 2021.

The 145 retailers awarded funding, operate across a broad spectrum of sectors including healthcare, jewellery, fashion, sports, homeware and furniture, electrical goods and equipment.

ENDS

For further information please contact:

Brigid Burke, Press and Media Relations, Enterprise Ireland, 087 1803995 brigid.burke@enterprise-ireland.com

About Enterprise Ireland:

Enterprise Ireland is the Irish State agency that works with Irish enterprises to help them start, grow, innovate and win export sales in global markets. Enterprise Ireland partners with entrepreneurs, Irish businesses, and the research and investment communities to develop Ireland’s international trade, innovation, leadership and competitiveness.  In this way, we support sustainable economic growth and regional development, and help create and sustain employment in Ireland.  www.enterprise-ireland.com

About the Covid-19 Online Retail Scheme:

Supporting the Irish retail sector to embed a more sophisticated online trading (e-tailing) strategy in its business model can contribute to the continued viability of a cohort of retail companies affected by the Covid-19 pandemic and help position them for recovery. Applicant companies must be an Irish-owned retail enterprise that had 10 or more employees on or before 29 February 2020 and has the potential to sustain or create jobs, generate growth in online transactions and with an ambition to internationalise their business in future.

The business must also: • have an existing online presence (e.g. website or social media) • have a retail outlet and derive the majority of revenue from retailing products directly to individual consumers:

• Where a company provides both products and services, the applicant must provide a breakdown of sales revenue showing that products account for more than 50% of total revenue for a recent trading period, which may be up to the call close date;
• Where a company has a mixture of business-to-consumer (B2C) and business-to-business (B2B) operations, the applicant must provide a breakdown of sales revenue showing that sales from B2C activities account for more than 50% of total revenue for a recent trading period, which may be up to the call close date;
• Must employ at least 10 employees in the Republic of Ireland (on a full-time equivalent basis on or before 29 February 2020)

The Scheme originated in the work of the Retail Consultation Forum which is chaired by the Minister of State for Business, Employment and Retail, Damien English T.D.

Building on two previous successful calls of the pilot Online Retail Scheme, introduced by the Department arising from the work of the Retail Consultation Forum, applications for the two 2020 schemes were open to indigenous retailers to develop a more competitive online offer in response to the Covid-19 crisis and to strengthen business resilience.

List of 145 approved companies under Covid-19 Online Retail Scheme

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