Shoppers of a unique kind flocked to the Jervis shopping centre last week, proving that retail isn’t dead—it’s just on a suspiciously long coffee break.
Up to 13 first-round offers were laid out for the Dublin city centre mall. Yes, that’s right, folks—it’s more popular than a free Wi-Fi password! The owners, Paddy McKillen and Padraig Drayne, decided to quietly auction it off, possibly while waiting for their lattes to brew.
This marks the shopping centre’s grand debut on the market since it was conjured into existence back in the 1990s by McKillen, Drayne, and their magical business partner Paschal Taggart. It’s like a vintage wine—one of the last remaining original shopping centres still owned by its creators, unwilling to let go of their retail legacy.
Among the bidders were some big names, including the Comer Group and US property investor Hines, both of whom are probably enhancing their portfolios like teenagers in a candy store. Peter Horgan’s Lugus Capital, Patron Capital, and David Goddard’s Lanthorn also joined the bidding frenzy—a fight to claim the Jervis as their very own prize possession.
The auction came hot on the heels of intense interest in Marlet’s retail parks, which received ten initial bids. Retail is the star performer in the property investment market—like the Beyoncé of real estate—attracting the most capital, while the office and private rental sector sit in the corner, sulking over dire prognosis.
In the first three months of this year, retail accounted for half of all property transactions in Dublin—a statistic that makes it sound like everyone suddenly decided that shopping malls were the new stock market. Meanwhile, Realty Income, a US-based investor, made headlines by snapping up eight retail parks from Oaktree Capital, signaling that shopping is back on the agenda. Their investment came after they rolled the dice with a cool $950 million in Las Vegas at the Bellagio Casino—because, why not mix retail with a bit of gambling?
Reports of the death of bricks-and-mortar retail have clearly been overstated. The pen and paper prognosticators must have had too much of the New Year blues because statistics indicate a retail renaissance. AIB’s latest report showed that in-store spending surged by 2% compared to last year—basically, people are proving that they still prefer to touch fabric before buying it. Shocking, I know!
The EY Future Consumer index found that 70% of consumers still prefer physical stores for their everyday purchases. It’s almost as if the thrill of online shopping has triggered a nostalgic longing for the smell of mall pretzels and the experience of waiting in line.
As retailers scramble to “wow” their customers, Jean McCabe, CEO of Retail Excellence Ireland, stated that stores are reopening with spruced-up styles, adding entertainment options akin to theme parks because who wouldn’t enjoy shopping while dodging roller coasters? And Brendan McDowell of BPerfect Cosmetics took a leap from digital to physical, opening 13 stores in the UK and Ireland—proof that if you can’t beat ’em, why not join ’em in a physical location?
The world of shopping is seeing a grand makeover, with many erstwhile empty units now filled with new contestants ready to shine on the retail stage. From the ashes of closures rise proposals for funky new shops, bars, and even the occasional hotel. Because who doesn’t want to stay right above the new Zara?
But don’t break out the champagne just yet. The shopping centre landscape is also changing. Before the Celtic Tiger prowled the streets, the likes of Irish Life and Iput dominated, but after the recession’s harsh reality set in, many malls were sold off to private equity vultures. It’s a bit like a real-life game of Monopoly—just when you think it’s over, someone turns up to buy Boardwalk.
Despite a rejuvenated interest in malls, many asset sales are still below asking prices, sending investors perusing the discount aisle of real estate. The question remains whether shopping centres can morph enough to accommodate the changing landscape—perhaps they’ll start offering yoga classes or underwater basket weaving workshops just to keep up with the competition!
So, whether you’re screaming for a comeback of retail experiences or savoring those good ol’ ecommerce deals from the comfort of your couch, it seems the retail saga continues to unfold—with a comedic twist, of course! Retail therapy just got a quirky upgrade.
