Shoppers of a rather peculiar variety descended upon Jervis Shopping Centre last week—think less “retail therapy,” more “business transactions that sound weightier than they are.”
A flurry of 13 first-round offers was tossed into the mix for this Dublin city-centre gem, which has quietly flitted onto the market, likely looking for a new owner who will appreciate its history—or at least its square footage. Its owners, Paddy McKillen and Padraig Drayne, decided it was time to pass the baton (or perhaps, the shopping cart) after holding onto this gem since its inception in the 1990s. Remarkably, this mall is among the few still under the dominion of its developers, as if it has a metal-detector for opportunistic private equity sharks.
Buzzing with excitement (or was it caffeine from the nearby coffee shops?), among the bidders were illustrious names like the Comer Group, the US property behemoth Hines, Peter Horgan’s Lugus Capital, and David Goddard’s Lanthorn—because why not throw a few more fancy acronyms into the mix?
As if that wasn’t enough to raise eyebrows, the auction came on the heels of heightened bidding for Marlet’s trio of retail parks, which sounds awfully fancy until you realize they just comprise parking lots with shops attached. Those parks drew ten initial bids—looks like everyone’s getting a crash course in retail real estate.
For the past year, retail has been the unexpected darling of the property investment market—a classic underdog story! While offices languish in the depths of despair, retail stocks are probably sending thank-you cards to the pandemic, which paradoxically revitalized foot traffic. Estate agents confirmed that, in the first quarter of the year, retail deals accounted for half of all property values—which is only a little less shocking than your uncle announcing he’s quitting his job to pursue competitive juggling.
International investors are trailing the rails of retail like coyotes at a buffet. Realty Income, the US-headquartered entity that once splurged nearly $1 billion on the Bellagio casino (which sounds quite romantic), has now been pinning its hopes on the retail sector and snagged eight retail parks in a €220 million deal. Bricks-and-mortar might have been declared “dead” during COVID, but now they’re allegedly rising from the flames—possibly with a new lease on life (or an upgrade to their Wi-Fi).
Statistics reveal a revitalized narrative: in-store spending surged by 2% in early 2023 vs. last year’s cloak of despair. According to AIB’s latest report, consumers seem to prefer the tactile delight of in-store shopping—perhaps they miss the smell of mall pretzels or lament the lack of human interaction with mannequins. Same goes for the findings from the EY Future Consumer index, which reported that 70% of shoppers still favor physical shops for everyday items—a remarkable feat for a generation that can barely remember life without online shopping.
Jean McCabe, CEO of Retail Excellence Ireland, put it bluntly: people are returning for the “customer experience.” So, basically, they’re tired of buying things they can’t touch while sitting at home in pajamas. Retailers are responding by opening more stores so they can shout at their customers in person rather than just through a screen, as everyone seems to be playing a high-stakes game of who can fill empty spaces fastest.
And what’s a good retail experience without some entertainment? Shopping centres are updating their tenant mix—all the fun of a local fair, minus the questionable fried food choices. Brendan McDowell, founder of BPerfect Cosmetics, started online, but he’s clearly discovered that brick and mortar has its perks—mainly, shoving makeup into unsuspecting hands instead of leaving it to online “Oops!” purchases.
With all these changes, one has to wonder: what’s next? Maybe a retail apocalypse revival, or just another wave of investment dollars chasing after diminishing returns like seagulls after an unattended french fry? One thing’s certain—though the landscape may have changed, retail’s resounding comeback is leaving everyone scratching their heads and checking their wallets—curiouser and curiouser.
