Shoppers of a Different Stripe
Last week, Jervis shopping centre played host to a veritable carnival of “shoppers” — or perhaps we should call them bidders — who were less interested in retail therapy and more into real estate gymnastics.
Up to 13 first-round offers were tossed on the table like confetti for the Dublin city centre mall, stealthily whispered onto the market by its current owners, Paddy McKillen and Padraig Drayne. At this point, if you’re still keeping track, this charming little shopping centre hasn’t changed its owners since the ’90s — a bit like the decades-old nachos lurking in the back of your fridge.
Among the economic gladiators lined up to snatch the place were illustrious names such as the Comer Group, US property investment juggernaut Hines, Peter Horgan’s Lugus Capital, and even the noble Patron Capital. If you threw a fancy dinner party with these guests, you might be in for some interesting conversations — about retail parks, yields, and probably, the market’s unique charm of being a ‘money pit’.
The recent auction of Jervis followed the fervent bidding frenzy for Marlet’s retail parks across Dublin, Louth, and Tipperary, which somehow managed to receive ten initial bids — yes, you read that correctly. Quite the competition, considering the average person’s shopping prowess involves a half-hearted stroll through a mall that ends with a regrettable purchase of another pair of shoes.
For over a year now, retail has transformed from the being the unwanted heir in the property investment family to the prodigal son returning home with some serious cash. While offices and private rentals have been sent to the corner with a dunce cap, our dear retail markets have staged an epic comeback tour. Just imagine, post-pandemic reports of the death of bricks-and-mortar stores turned out to be as exaggerated as the time your friend claimed they were on a ‘juice cleanse’.
Statistics are now painting a different picture (and this one doesn’t involve a cake). According to AIB’s latest retail report, in-store spending climbed by 2% compared to last year, proving that apocalyptic predictions about physical shopping were little more than sassy gossip rather than the reality check we thought they were. Want more stats? The EY Future Consumer index found that about 70% of consumers still prefer their everyday purchases to occur in a tangible store — why would you deprive yourself of the joys of awkward small talk with cashiers over your skincare routine?
As we plunge deeper into this retail renaissance, Jean McCabe, head honcho at Retail Excellence Ireland, declared that consumers are clamoring back into stores for an experience — a concept alien to anyone who attempted shopping online in their pajamas. She noted that retailers are busy multiplying their stores as if trying to achieve the economies of scale equivalent of a corporate rabbit multiplication program.
