Shoppers of a rather unusual variety descended upon Jervis shopping centre last week. You’d assume they were there for the sales, but no—up to 13 first-round offers were placed on this Dublin mall, quietly nestled in the market by its owners, Paddy McKillen and Padraig Drayne. Ah, nothing like a little retail drama to spice up mid-October!
Now, just to put things in perspective: this is the first time the shopping centre has been up for grabs since the 1990s, back when frosted tips were a fashion statement, and it was designed by McKillen, Drayne, and the somewhat enigmatic Paschal Taggart. Fancy that! Can you imagine selling your childhood home only to discover an unwelcome neighbor lurking in your backyard? Oh, nostalgia can be cruel.
So, who were the eager beavers chomping at the bit for ownership? The Sunday Times spills the tea on some of the bidders: we’ve got the Comer Group, Hines—an American property mogul who’s probably buying properties with one hand while ordering a pizza with the other—Peter Horgan’s Lugus Capital, and Patron Capital, amongst others. It sounds more like the lineup for a high-stakes poker game than bids on a shopping centre!
This auction comes hot on the heels of robust bidding for Marlet’s trio of retail parks in Dublin, Louth, and Tipperary—making it sound like retail parks are the new gold mines, albeit with a lot more foot traffic and less glitter. Retail has transformed into the rock star of the property investment scene these days, attracting capital like moths to a flame, while office spaces are left sulking in the corner, brooding over their sad fates.
And if you think that’s the end of the story, hold on to your shopping bags! US-based Realty Income, fresh off a $950 million investment in the Bellagio casino, rolled the dice on shopping yet again, snatching up eight retail parks for a modest €220 million. Nice work if you can get it, right? It appears the rumor of brick-and-mortar retail’s demise during the pandemic was blown out of proportion—like a second helping of cake that no one truly needed.
Statistics say retail is indeed making a comeback, with in-store spending increasing by 2% compared to last year. Even the EY Future Consumer index claims that 70% of shoppers are drawn to physical stores for everyday purchases. Must be those irresistible “buy one, get one free” signs—or perhaps something more profound, like a yearning for the human experience rather than just a screen.
Retail venues are adapting as well, increasing their mix of tenants by bringing in entertainment options and deliciously expanding food and beverage offerings. It’s as if they’re saying, “Come for the shopping, stay for the nachos!” Jean McCabe from Retail Excellence Ireland admits customers are flocking back for the in-store adventure and excitement. Meanwhile, companies like BPerfect Cosmetics are popping up physical locations faster than you can say “retail apocalypse”—with 13 new stores across the UK and Ireland just for fun.
Yet not everything is pure bliss in this retail utopia. There’s a mixed bag of outcomes lurking among the empty storefronts, and while some are thriving, others continue to struggle. The demise of chains like Debenhams and the unpredictable fate of others like River Island serve as a stark reminder that retail, much like life, can be unpredictable. But as they say, out with the old and in with the new. As long as people need places to buy their chips and salsa, the retail world will keep spinning—hopefully with fewer empty units and more tacos!
