15-07-2025
How the cost of living crisis has changed Ireland's streets
Analysis: Retailers and businesses in Irish towns and cities now face huge direct and indirect challenges to stay in operation
Walking through any city or large town in Ireland today, many of us will have noticed a significant change in shop fronts compared to just a few years ago. There has been a marked increase in the number of vape shops, nail salons and beauty clinics. At the same time, vacancy and dereliction have become more widespread. These visible signs reflect the broader impact of the cost-of-living crisis on our main streets. More importantly, they raise questions about what has been lost and why.
A closer inspection using tools like Google Maps shows the disappearance of many businesses over the past 15 years. Some of these losses reflect shifting consumer habits, such as the decline in demand for travel agents, which have nearly vanished.
From RTÉ Radio 1's Morning Ireland, retailers in Dublin report trade and footfall is down across the board
In recent years, the balance of risk and reward for operating a business has changed drastically. Surviving is now a struggle and meaningful profit has become elusive. Business owners regularly report declining footfall and express their concerns to local representatives, but the problems persist. While consumers ultimately determine which businesses survive, many cities and towns have become increasingly unappealing. People now perceive these areas as grimy, uninviting and even unsafe, with remote working further reducing daily foot traffic.
Concerns of individuals
Simple daily activities, like getting a morning coffee, reveal larger issues. Poorly maintained footpaths and roads are common and it is not unusual to be splashed by water from beneath a loose paving slab on a rainy day. This neglect is largely because maintenance is now bundled into large-scale capital redevelopment projects rather than carried out on a rolling basis.
On many streets, numerous units are boarded up or propped together just enough to prevent collapse. Streetscapes often feel sterile and unwelcoming, with a preference for paving over greenery. In some cases, moss walls have been installed instead of trees. In Cork city centre, for example, there is only one small open green space, located next to two vacant units on Grand Parade. Unfortunately, this area has become a gathering place for some of the city's more vulnerable individuals, who often spend their day drinking there.
From RTÉ Radio 1's The Business, retail strategist Sharon Yourell Lawlor discusses the outlook for Irish retail after New Look's closure of Irish stores after 22 years here
Antisocial behaviour and the absence of visible law enforcement are growing concerns, particularly after dark. These problems begin with minor issues such as littering, broken bottles or people rummaging through bins for recyclables. But increasingly, news of stabbings or fatalities near main streets is no longer shocking. A lack of Garda presence compounds the issue, creating a vicious cycle. Business owners who might help deter such behaviour through passive surveillance are discouraged from setting up shop in the first place.
Costs and risks to business
Day-to-day costs have climbed steeply in recent years: rent, insurance, wages, electricity, heating and supplies have all gone up. Higher costs mean higher break-even thresholds, which increases risk. Business decisions on opening, continuing or closing are no longer just financial, though, and retirement or burnout can also lead to closures.
But when focusing on operating costs alone, a different cycle emerges. As expenses rise, prices must follow, fuelling the very cost of living crisis that makes doing business difficult. Even long-established businesses can longer maintain the margins required to survive. Those who do continue to operate wonder where their rates go when they seem to see little benefit from it.
From RTÉ Radio 1's This Week, 100 local shops close annually in Ireland with at least three shutting their doors every fortnight so what are the issues for shop owners around the country?
This new landscape favours two business types. The first are high-volume, low-margin operations like vape shops and nail salons. The second are low-volume, high-margin ventures like beauty clinics. These typically occupy smaller units, while larger vacant spaces, suited to big retailers, remain empty. Larger retailers, with deeper pockets, are better positioned to afford fit-outs and long-term leases.
Independent retailers have been disproportionately affected by the cost-of-living crisis. With smaller profit margins and limited financial buffers, many family-run shops and boutiques have closed, while chain stores and franchises, often backed by larger capital reserves, have taken their place.
This has led to a loss of character and uniqueness on Irish streets, with many areas beginning to look all a bit the same. The pressure of rising costs, long hours and uncertainty is taking a toll on the mental health of small business owners and staff. Many cite burnout, anxiety, and lack of support as reasons for exiting retail or hospitality sectors.
Unintended consequences
One lasting change since the Covid pandemic is the increased demand for outdoor space. Many bars and restaurants adopted a continental approach, adding outdoor seating to double their footprint. However, this has led to unintended effects. Some neighbouring units now appear vacant but are actually used to store outdoor furniture. Others have bolted fencing into public footpaths, effectively occupying public space without oversight or planning approval.
From RTÉ Radio 1's The Late Debate, how can the social life of towns and cities be kept safe?
The cost-of-living crisis has also encouraged some businesses to bypass bureaucracy. It is now common for businesses to flout or ignore planning regulations, taking the approach that seeking forgiveness is easier than obtaining permission.
Working from home has also had a major impact, with working attending officed in-person fewer days. Consequently, there are less people buying coffees and sandwiches in spots that would have thrived pre-covid. The cost-of-living crisis has put the nail in the coffin of these outlets, as people opt to bring pre-prepared lunches rather than eat-out.
Changing appetites
Shifts in consumer preference have also shaped the streetscape. People aged 18 to 25 are drinking less alcohol than previous generations but spending more time in gyms and wellness studios. As a result, there are fewer bars and more fitness-focused businesses. This change has further reduced nighttime footfall, weakening passive surveillance and increasing opportunities for anti-social behaviour. Additionally, for those surviving bars and restaurants, many have reduced operating hours to cope with quieter times, often remaining closed on Sundays to Tuesdays.
From RTÉ Radio 1's Drivetime, Gen Z views on alcohol
The price gap between low and high-quality goods has also narrowed. As overheads drive up prices, the difference between mediocre and premium products has shrunk. If a glass of wine costs over €10 regardless, spending €12 for something better feels justified. Similarly, if a basic coffee costs €3.50, many are willing to pay a little more for superior taste or service so premium offerings tend to ironically fare better.
At the same time, the trend of replacing rather than repairing goods has continued. Quality, particularly in clothing, has declined. Manufacturers can only pass on so much of their rising costs, leading them to compromise on materials. Jeans, for example, now often include polyester or elastane, reducing durability. Repairs are increasingly needed, yet convenience pushes people toward replacement instead. Furthermore, fast-fashion through online outlets reduces spending on main streets in retail stores.
The future for our main streets
The cost-of-living crisis has changed how people shop. Consumers are increasingly prioritising price over supporting local businesses. While ethical consumption and 'shop local' campaigns gained traction during the pandemic, rising prices have forced many to return to discount retailers or online platforms.
From RTÉ Radio 1's Today with Claire Byrne, what needs to be done to improve Dublin's Main Street?
Efforts to promote sustainability have sometimes had unintended consequences. Cities have seen reductions in parking spaces, closures of streets to private vehicles and widespread roadworks. Ireland remains a car-centric nation, but current policies often punish drivers without providing viable alternatives. Public transport is frequently unreliable, with ghost buses and overcrowding commonplace. Park-and-ride facilities exist but are limited and inconvenient. In contrast, out-of-town centres with free parking are thriving, further draining footfall from urban cores and accelerating dereliction.
If our cities and towns are to recover, policy must respond to these new realities. Government needs to live up to their election promises to business owners and rein in the rapid increases in costs to prevent further cost-of-living spirals. Revitalisation requires more than just filling empty units and demands holistic planning, better maintenance, visible policing, meaningful incentives for business and sustainable, user-friendly transport. Without these changes, the cycle of vacancy, dereliction and disconnection will continue to shape our urban experience, leaving our streets poorer in every sense.
