Welcome to the Shopping Circus
Shoppers of a rather *different* kind flocked to the Jervis shopping centre last week, and no, they weren’t there for the latest fashion trends. It seems that the real retail therapy was in the form of up to 13 first-round offers for the Dublin city centre mall—because nothing says “I love shopping” quite like a bidding war.
The Jervis hasn’t changed hands since it was conjured out of thin air by Paddy McKillen, Padraig Drayne, and their magical ally, Paschal Taggart, back in the magical ’90s. As fate would have it, this is one of the last shopping centres from three decades past still owned by its original creators. You know what they say about the good old days—they’re usually quite profitable.
Bidders Galore: Who Doesn’t Love Competition?
Among those eager bidders were the likes of the Comer Group, Hines, and Peter Horgan’s Lugus Capital—all sounding like powerful sorcerers from a financial fantasy novel. On the other side of the board, David Goddard’s Lanthorn was lurking, ready to pounce on behalf of its clients. You could almost hear the cash registers ringing in the background as the auction got underway.
The atmosphere was no less electric following a round of *extremely* enthusiastic bidding for Marlet’s trio of retail parks, which also drew ten initial bids. Apparently, retail is the star performer in the property market—who knew shopping could outperform offices and private residential schemes? It appears that retail is still the reigning champion, even after a pandemic that nearly sent it into a nosedive.
The Retail Revival: More Than Just a Fad
Post-pandemic, the talk of the “death of bricks-and-mortar shopping” turned out to be as true as last week’s fashion trends—shocking, yet temporary. Retail appears to be rising again, like a phoenix from the ashes of online shopping. An AIB retail report recently revealed that in-store spending actually rose by 2%. Yes, folks, people have decided they prefer trying on pants in person, despite the occasional awkward fitting room encounter.
And it’s not just consumers; retailers are apparently feeling the vibe too. Jean McCabe, chief exec of Retail Excellence Ireland, declared that customers are returning for the *experience*—presumably one that includes more than just a one-click Amazon Prime delivery. She noted that retailers are hell-bent on opening more stores for economies of scale. Who knew that financial jargon could sound so… ‘exciting’?
The Mixology of Consumerism
Shops are morphing into entertainment venues, food stalls, and a connoisseur’s delight of Irish brands. Brendan McDowell of BPerfect Cosmetics started online but now boasts 13 physical stores spread across the UK and Ireland—his own little kingdom of makeup adventures. McDowell recalls how he swooped into shopping centres when many units were empty, negotiating better deals than a savvy bargain hunter during a clearance sale.
As McDowell so wisely puts it, “It was a good time to open a store.” Who could resist a bargain when practically everything was up for negotiation? Seems like retail parks are now places where anyone can get a good deal, even if that someone isn’t wearing pants while browsing online.
Market Dynamics: The Irony of Supply and Demand
Fast forward to now, and it seems the retail park segment has become the golden child of investors. High yields are practically begging buyers, while shopping centres in prime spots entice international investors, boasting yields up to 6 percent. No wonder people are lining up to play the game, hoping these jewels in the retail crown keep shining brightly despite occasional economic clouds overhead.
However, it’s not all glitter and glam. The inventory of retail parks has dried up since the last development was—as far as some folks can remember—back in 2007. With more buyers than available assets, we’ve found ourselves in a Tinder-style retail matching game, where supply issues mean no new parks are springing up. Love it or hate it, high demand means occupancy rates are often approaching a hearty 100 percent.
Gentrification in Shopping: The Revival of Empty Space
Meanwhile, retail units abandoned by struggling UK chains have found new lives under the supervision of varied and vibrant brands. Debenhams may have closed all its doors in Ireland, but its former ghosts have been replaced with buzzing activity — hello, Frasers Group! And before you can say “retail renaissance,” old store facades are taken over by brands that couldn’t resist the siren call of prime real estate.
So, while the market still holds on to its fair share of challenges—including some UK retailers feeling the pinch—Hope Springs Eternal for retail lovers. As Bannon points out, vacancies can lead to opportunities for clever brands looking to snatch sweet real estate deals. Resilience has become retail’s new buzzword, and it looks like landlords will continue to find ways to make those formerly barren spaces breathing grounds for your next shopping spree.
