Step aside, bargain hunters; a different breed of shopper flooded the Jervis shopping centre last week—those armed with offers in hand but lacking a coupon. A staggering 13 first-round bids for the Dublin city center mall emerged after its owners, Paddy McKillen and Padraig Drayne, decided it was high time to kick it to the curb and sell it off quietly, like that leftover fruitcake nobody wants at Christmas.
This marks the first occasion in decades that the shopping centre has been up for grabs since its inception in the 90s, thanks to the masterminds McKillen, Drayne, and Paschal Taggart, who stamped their mark on the retail landscape back when Y2K was the greatest threat we faced. Now, it’s one of the last shopping centers still firmly in the grip of its developers, who have decided it was better off in the hands of someone else—let’s hope they’re not just trying to get rid of it before the next recession kicks in.
Among the bidders were heavyweights like the Comer Group, U.S. property mogul Hines, Peter Horgan’s Lugus Capital, and Patron Capital, not to mention David Goddard’s Lanthorn, who no doubt had clients excited about the mall. It’s like watching a game of Monopoly only with investors who don’t mess around. And just for added spice, the auction followed a flurry of strong interest in Marlet’s trio of retail parks—perhaps everyone’s feeling a touch nostalgic for old-school brick and mortar.
Interestingly, retail—once called ‘the walking dead of investment’—has been performing more like the star of a reality show: flashy and definitely alive! After a year in which retail has hogged the spotlight, it seems the competition from office spaces and private rented schemes has been about as invigorating as a flat soda. Based on recent statistics, it turns out that bricks and mortar may just have been misdiagnosed during the pandemic. The ‘death of retail’ narrative? More like an overdramatic exit stage left.
As reported by AIB, in-store spending rose by 2% in the first quarter—not that this enthusiasm is filtering down to the rent payments, mind you. Meanwhile, a March survey found that a whopping 70% of consumers still prefer the tangibility of shopping in person versus the tempestuous world of online purchases. Apparently, people really miss the tactile joy of browsing racks and the delightful agony of deciding between two different shades of beige.
Jean McCabe, the executive of Retail Excellence Ireland (yes, that’s a real title, not just the name of her Instagram), noted that folks are returning to stores for an experience—what an earth-shattering revelation. Companies are eagerly throwing caution to the wind, opening more stores than a tech startup pumping out apps. “Nothing says charm like a shopping centre filled with delightfully overpriced bootcut jeans,” she might as well have said.
Brendan McDowell, founder of BPerfect Cosmetics and perhaps a wizard at marketing as well, started his empire by selling online but has since opened 13 physical stores. This might be a strategic genius move, considering he capitalized on the pandemic’s wave of empty stores as if he were a surfer finding the perfect swell. He recently recounted how, back in 2022, he picked the prime location in Blanchardstown amid a sea of vacant units—ah, a true opportunist’s paradise. But surprise, surprise—those shorter-term deals came with their own perks.
Although we’re at a fascinating crossroads in retail, it’s worth mentioning that not every shopping centre is painted gold. Some remain stubbornly vacant as if waiting for the universe to send them a sign—or a truckload of eager customers. Don’t worry, though; with some retailers floundering, others are swooping in like eager seagulls at a picnic, ready to feast on the remains of once-great odds and ends. The very future of retail hangs in the balance—will it be a renaissance or another round of “who can buy the most trendy athleisure?” The magic eight ball still says: “Ask again later.”
