In the 1990s, Dunnes Stores was a budget-focused retailer. Everything about it was built around the concept of “better value”.
Then Tesco entered the Irish market in 1997. This was quickly followed by Aldi in 1999 and Lidl in 2000. The budget end of retail had suddenly become more competitive and crowded.
Fast forward to 2025 and Dunnes Stores is now unabashedly at the premium end of the grocery sector. Larger outlets have a Whelan’s butcher on site, and gourmet cheese and fish stands as well to boot. This is not your mammy’s Dunnes because Dunnes had to adapt.
Earlier this month, Amazon launched its Amazon.ie website in Ireland. Immediately there were cries of what this could mean for Irish retailers. The thing is that Amazon has long had a retail presence in Ireland and Irish retailers have long since adapted.
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While the dot-ie version is new it’s not really a surprise. Amazon had relied on its dot-co.uk to service Ireland for a long time. It was only Brexit that really spurred the tech giant to act on a dedicated web portal for Ireland.
That it took them until 2025 to do so should be the most surprising feature of this announcement. There was long talk of a dedicated Irish site from Amazon, particularly once Brexit became a reality, yet there were almost nine years between the vote by British voters to leave the EU and the arrival of Amazon.ie.
The version that did land would, at its kindest description, be more akin to Tesco Express than a full-sized Tesco supermarket. Even that feels harsh on Tesco Express.
Amazon.ie lacks the discounted Prime offer for students nor is the family plan available. Added to this, it simply doesn’t have as big an inventory as the UK version. Users considering switching from the UK version to Amazon.ie won’t be able to transfer their wish lists.
It’s not clear who this version of Amazon is for. Attracting new users would naturally seem to be something suited to pushing the discounts for students and families. Were they seeking to move existing customers, those consumers have a high standard they expect to be maintained.
[ Why does the arrival of retail giants like Amazon whip the Irish into a frenzy?Opens in new window ]
Amazon.ie is not and never was going to be what Irish retailers should fear. It’s the concept of ecommerce itself that has changed things irrevocably for Irish businesses. All it took was a global pandemic for them to properly act on it.
Before Covid-19, the state of home-grown ecommerce in Ireland was abysmal across all levels of business. From large retailers down to sole traders, there was a reticence to truly embrace the model.
The change has been extraordinary and one that has overtaken Amazon in one key area, user experience.
Amazon is the largest online retailer on the planet but its hegemony comes with built-in limitations. The shopping experience on Amazon, whichever version you use, hasn’t really evolved with the times. The ease of finding the item you want plus the information you need just isn’t at the level smaller operators can deliver.
The vast majority of Irish ecommerce operators, be they The Black Stuff for soap, Kopper Kreation for high end homewares, or Milis for candles, offer quicker, clearer, and simpler shopping experiences.
There’s also the blended benefits for bricks and mortar retailers. Mother nature decided to curse me with enormous feet. All of my shoes are bought online. Yet if I buy a pair from Marks & Spencer, I can collect in-store for convenience.
Retailers that take this blended approach can then generate opportunities to upsell. While collecting shoes, I might get groceries in that same M&S or a coffee to take a break.
The skills that made the local shop so important before the advent of ecommerce have grown in importance as more Irish retailers make the move online. Adapting and differentiating is what it all comes back to.
No Irish retailer, not even Dunnes Stores, will ever compete with Amazon for volume. What they can offer is expertise, of what they are selling and the community they are selling to, and customer service.
Take camera equipment. You can buy any of it with ease on Amazon but a place like Conns Cameras in Dublin is always full of shoppers. People know that when they go to Conns they’ll get help from someone who knows what they are talking about, including telling the customer what not to buy.
Shopping, at its most basic level, is easily replicable. It’s all the other parts that are tough. Had Dunnes Stores stood pat at the turn of the century, they’d have been in for a bumpy ride. Instead they leant into their strengths, moved upmarket, and have thrived as a result.
This is where Irish retailers can grow online. That knowledge of their customers and the ability to give personalised service is an advantage to build on.
