The Nike deal will see Boots make a “significant contribution” to the €30bn Irish retail cashback scheme, the company has said.
Key points:Nike has secured a new deal with the Irish retail chain BootsThe new deal will give Boots the right to access the vast amounts of cash coming into the country from its customers, which will give it more control over the programmeThe retailer will use the money to pay back its customers’ loans, with no further interest.
Nike will also use the cash to pay down debts.
Nikes new deal has been described as a “game changer” for the Irish economyThe Irish Retail Consortium (IRSC) announced the deal at its annual conference on Wednesday, with the group saying it will be “a game changer for the economy” and that it will allow Boots to continue its “one-stop shopping” model.
It said it will also “reinforce our strategic position” as it is “the most innovative and profitable of all the retail businesses in Ireland”.
“This deal will also provide a boost to our global retail network which has experienced unprecedented growth in recent years and is a key driver of Ireland’s economic growth.”
The move comes amid growing pressure from the Irish government to take more control of the Irish market, as the country struggles with record unemployment and the rise of new online retail services.
It follows a series of decisions by Boots to close stores in the UK and Ireland, as well as the company’s decision to stop offering shoe rentals in Ireland.
Boots said it was “not a perfect fit” but said it had “never been in this position before” and would “continue to be a significant contributor to the Irish Retail Cashback Scheme”.
“The new partnership will give the Irish retailer access to the vast amount of cash which has come into the economy over the last 12 months,” the company said in a statement.
“The cash will be used to pay off outstanding loans, pay down debt and continue to deliver quality retail experiences for our customers.”‘
No doubt’Ireland’s economy is set to grow by more than 10% this year, as it grows to an estimated €20.5bn in the year to the end of March, according to the National Institute of Economic and Social Research.
However, the government has been struggling to contain the economic crisis in Ireland, with unemployment rising to a record 24.5% in January, and the Irish currency being devalued to record lows.
The government has said it plans to spend €7bn on the new scheme over the next five years.
Nunes announcement is seen as a major victory for the government, with finance minister Michael Noonan describing the deal as a significant boost to the economy.
“This is a game changers moment,” he said.
“As part of the new deal, we have secured a significant contribution to the scheme, enabling us to continue to offer our customers and staff the best retail experience.”
The deal follows an agreement with Boots to buy back the company.
It comes as the Government is set for a major shake-up of its economy in coming weeks.
It has been warned that its planned tax reform will mean more businesses will close and it will have to rely on private sector workers in many sectors.
Irish Prime Minister Leo Varadkar said the Government’s tax reforms, including the proposed change to corporation tax, will see many companies move to Ireland.
“We are not going to be able to get a good deal out of our country for Ireland as we are in the process of changing our tax laws,” he told RTÉ’s Morning Ireland.
The deal also comes after a series on social media from the Prime Minister’s Office last week that called on people to use their credit cards to buy Irish goods.
“Our goal is to get the new tax system in place as soon as possible so that it’s as easy as possible for Irish people to buy things in the EU,” said Mr Varadkar.