Shoppers of an unusual sort crowded the Jervis shopping centre last week, proving once again that when it comes to retail, the script is not always what you’d expect.
Up to 13 flashy first-round offers were thrown down for the Dublin city centre mall, a place recently shoved onto the market by its owners, Paddy McKillen and Padraig Drayne, who must have decided that clandestine selling is the new black.
This marked the shopping centre’s inaugural foray into the sale world since it sprouted from the creatively caffeinated minds of McKillen, Drayne, and their entrepreneurial accomplice, Paschal Taggart, back in the 1990s. Remarkably, it’s one of the final centres from that era still under the same ownership—like a relic from a time when Zoom meant only the thing that happened when you drank too much coffee.
Among the bidders were notable names like the Comer Group, US property mogul Hines, Peter Horgan’s Lugus Capital, and Patron Capital, all of whom likely gathered around their respective boardroom tables, trying to convince each other that purchasing a shopping centre in Dublin was indeed a sound investment. Curiously, David Goddard’s Lanthorn seemed to be present too, presumably using its clients as musical chairs for a high-stakes game of “Will you pass me the offering?”
The bidding frenzy comes on the heels of robust interest in Marlet’s trio of retail parks, which also sparked ten initial bids, igniting a kind of bidding war that lawyers probably salivated over. This newfound enthusiasm for retail is downright shocking, especially considering the ominous prophecies of doom that unfortunately echoed through our pandemic hearts.
Retail has been swaying heavily in the property investment market for over a year, stealing the limelight from its morose cousins—offices and private rentals. Estate agents reported that in the first three months of the year, retail accounted for a staggering half of all deal values. No pressure, but in a world still recovering from what felt like a bad break-up with brick-and-mortar, it looks like retail decided to put on its dancing shoes again.
Reports of the death of physical stores have been greatly exaggerated, almost like that epic saga of the “final season” of a TV show. Instead, it appears that retail has risen, phoenix-like, aided by solid stats. AIB recently proclaimed that in-store consumer spending rocketed by 2% in the first quarter, proving that shoppers are, surprisingly, not all digital nomads now.
Moreover, the EY Future Consumer index revealed that 70% of consumers still prefer real-life shopping experiences for daily needs. It’s a small miracle that people still want to leave their homes to confront real humans and the existential horror of their shopping choices.
As retail outlets awkwardly evolve, many are rebalancing their tenant mix—think less “just stores” and more “attraction parks” with entertainment venues, expanded food options, and a greater focus on local brands. As Jean McCabe, the stealthy chief executive of Retail Excellence Ireland, said, customers are increasingly flocking back to stores for a customer experience that can’t be replicated by Instagram ads. What’s next? Socializing outside of Zoom calls?
Ultimately, retail spaces are becoming more than just places to buy; they’re setting the stage for social engagements—because if you can’t catch up with a friend over a cup of overpriced coffee, did the friendship even happen?
