Shoppers of a rather peculiar persuasion flocked to Jervis shopping centre last week—not the usual consumers hunting for deals, but a gaggle of bidders like it was Black Friday. Up to 13 enthusiastic first-round offers were made for this charming Dublin mall, which was thrust onto the market by its owners, Paddy McKillen and Padraig Drayne, in a low-key manner that screamed “please take us!”
This marked the grand debut of the shopping centre on the sales block since it was constructed in the 1990s by our dynamic trio: McKillen, Drayne, and entrepreneur Paschal Taggart—because nothing says business model like getting embroiled in a retail sales circus every few decades.
Among the eager bidders, we had the likes of the Comer Group and US property titan Hines, who presumably heard the word “sale” and showed up with shopping carts full of cash, ready to make it rain. Peter Horgan’s Lugus Capital joined forces with Patron Capital, and let’s not forget David Goddard’s Lanthorn, also present, representing clients as if they were preparing for an epic bidding war to determine who gets the last vintage T-shirt at a garage sale.
As retailers capered after Marlet’s recently chased trio of retail parks across Dublin, Louth, and Tipperary—with ten initial bids, no less—it seemed the retail investment market was bubbling hotter than a pot of overcooked pasta. Surprisingly, while office and private rental sales languish like a cat on a Sunday afternoon, retail has dazzled investors, which no one expected to see after the pandemic huffed and puffed at the closed doors of brick-and-mortar shops.
Estate agents reported that retail managed to snag half of all investment deals in just the first three months of the year. Apparently, post-pandemic, shoppers decided that the smell of new merchandise beats shopping in their pajamas any day of the week. Thanks to e-commerce, retail has gone from the depths of despair to flaunting its prowess like a peacock strutting about the yard.
But wait—there’s more! According to the EY Future Consumer index, seven out of ten shoppers would rather visit an actual store for their daily necessities than waste precious time scanning screens. Jean McCabe, the CEO of Retail Excellence Ireland, proclaimed customers were “returning to stores for the experience”—as if entering a shop is akin to attending a premium concert rather than just picking up toilet paper.
Retailers are revamping their tenant mixes like fashionistas at a thrift store, adding entertainment zones, expanding food options, and showcasing more local brands, as if we could ever have enough artisanal coffee shops. Brendan McDowell, the mastermind behind BPerfect Cosmetics, started with online sales but swiftly opened 13 physical stores because apparently nothing beats the rapture of purchasing cosmetics in person. He learned the hard way that having a storefront during a pandemic might be an unwise gamble—but there he was, negotiating better deals than a seasoned poker player would at the final table.
While some assets are bouncing back, not all retail has fairy-tale endings. The French and UK retail giants are still finding ways to disappear like socks in a washing machine. With reports of Pepco selling its stores for a measly £1, and rumors swirling around River Island’s supposed restructuring plans, it seems the British retail apocalypse honks its dystopian horn across both Ireland and the UK. But don’t worry! Bannon, a savvy commercial property agent, reassures us that the demise of some could be the beginning of a glorious renaissance for shops. After all, empty store spaces are just waiting for vibrant new brands to roll in like kids on the first day of summer vacation.
