Donegal County Council to pilot project to combat retail closures

Garry Martin, Director of Human Resources, Economic Development and Emergency Services at Donegal County Council, agreed to send a letter to the relevant departments

Published 25th May 2026, 13:00 BST The Diamond, Donegal Town | File Garry Martin, Director of Human Resources, Economic Development and Emergency Services at Donegal County Council, agreed to send a letter to the relevant departments Sign up to our Donegal Live newsletter Sign up Thank you for signing up! Did you know you can manage your profile, and explore all of the available newsletters from Donegal Live within your account.

Donegal County Council will write to the Department of Enterprise, Tourism and Employment, as well as the Department of Rural Community Development, to suggest Donegal pilot a project to combat retail closures.

The motion was brought to the May Plenary meeting of Donegal County Council by Independent Councillor Niamh Kennedy and seconded by Fianna Fáil Councillor Martin McDermott.

“The costs of keeping small businesses open are now overwhelming for many shops and small rural pubs,” Cllr Kennedy said. “We need some practical incentivisation, a scheme to keep the lights on and to trade locally. The wage increases, electricity costs have driven these people to the pin of their collar.

“Without these small retailers remaining open in our areas, we will have no offering for the community or the tourism trade in the near future. Something must be done to save our rural communities from closure and dereliction.”

Cllr Kennedy highlighted that maintaining vibrancy and supporting local businesses matter in every town, and that these closures affect more than just the economy.

Donegal County Council hold minute’s silence on 35th anniversary of Eddie Fullerton’s death Watch: Videographer captures drone footage of Donegal’s breathtaking attractions “Retail is being replaced by services,” Cllr Kennedy continues. “The communities that win this battle will be the ones that show commitment. We need to show that our towns and villages are the core. Visitors do not travel for services; they travel for experiences. Unique shops, local produce, culture and storytelling. When retail disappears, so does our sense of place.

“This deters families from moving home. How can we revitalise these towns and villages? We are not about managing decline, but rather shaping growth.”

Cllr Kennedy further suggested an officer to implement strategies in each Municipal District, as well as a micro-grant system that would cover the costs of signage, for example. Additionally, a cluster strategy to reduce overheads, tax incentives and shop front grants.

“If the trends of closure continue, we face declining community pride and population. Tourism depends on unique experiences and walkable destinations,” Cllr Kennedy added. “I am asking for this commitment to help rural communities, to take leadership and make decisions.

“It is so disappointing to see so many shops close. We need to act before it's too late.”

Cllr Martin McDermott seconded the motion, adding: “Every councillor can relate - all small businesses are struggling to survive.

“Tourism season is getting shorter and as a council, we need better infrastructure in place. I don’t need to leave Inishowen to realise that.

“Local towns and villages are struggling. There's a narrative that bigger towns are being built up and small rural towns are being forgotten. We need a pilot scheme for smaller towns to be able to compete. Need the shops for people to visit.”

Garry Martin, Director of Human Resources, Economic Development and Emergency Services at Donegal County Council, responded: “There have been huge changes in our approaches - a huge trend in online retailing. That’s not going to change, but we need to maximise our options.

“We need to create an environment that is attractive to come into. There are huge challenges among small businesses and while there is a range of incentives, there still seem to be issues preventing these businesses from thriving. The Tourism and Regeneration Unit does Trojan work. We have seen substantial investment in a range of hospitality businesses.

“We would be happy to engage with the respective departments and draft a letter.”

Related topics: Donegal Town Niamh Kennedy Donegal County Council Sign up to our Donegal Live newsletter Sign up Thank you for signing up! Did you know you can manage your profile, and explore all of the available newsletters from Donegal Live within your account.