Shoppers with a penchant for serious business flocked to the Jervis shopping centre last week, proving once again that even in retail, money matters more than stories of courageous consumerism.
In a scene reminiscent of a high-stakes poker game, up to 13 first-round bids were thrown onto the table for this Dublin city gem, quietly auctioned off by its owners, Paddy McKillen and Padraig Drayne. Spoiler alert: no one just wanted to browse for socks.
This sale is a history lesson wrapped in a glossy brochure, marking the first time McKillen, Drayne, and the elusive Paschal Taggart’s shopping sanctuary has come up for sale since its 1990s inception. Remarkably, it’s one of the few centers from the glory days still owned by its developers—not yet passed on to a faceless corporation.
Bidders included the likes of the Comer Group and Hines—because why wouldn’t billion-dollar residential and commercial investors want a slice of the retail pie? We also saw Lugus Capital and Patron Capital intermingling with David Goddard’s Lanthorn, who, let’s be honest, probably need a “retail therapy” program after this bidding war.
The auction followed a vigorous interest in Marlet’s trio of retail parks. Apparently, shopping parks are the new “in” places since they garnered ten initial bids. Because nothing says “I’m serious about investment” like a land full of chain stores and fast food joints.
For over a year, retail has confidently waved its flag as the “star of the investment show” in the property market, drawing in capital like moths to a flame. The unfortunate fate of office buildings has been akin to that of the last kid picked in gym class—sad and lonely—while retail makes a miraculous comeback, laughing in the face of previous doom-and-gloom prophecies during Covid.
Remember that time we thought the bricks-and-mortar retail sector would go the way of the dinosaur? Well, not so fast! According to AIB’s latest report, in-store spending climbed by a wholesome 2% in the first quarter. Apparently, shoppers have concluded that flicking through options on a screen isn’t quite as fulfilling as sifting through racks in stores. Truly a plot twist worthy of an award!
As retail executives declare that customers are flocking back for “the experience,” we find retailers opening more stores, discovering that economies of scale are better allies than tiny online shops filled with digital dust. Meanwhile, shopping centres are now reminiscent of buffet restaurants, adding entertainment venues and an extensive food lineup while courting the attention of local brands. Because who doesn’t love shopping with the option to also watch a movie or grab artisanal nachos?
When it comes to real success stories, meet Brendan McDowell, founder of BPerfect Cosmetics, who transitioned from selling online to opening physical stores faster than you can say “impulse buy.” Somehow, the strategy of testing the waters with pop-up stores at shopping malls like Blanchardstown turned out to be a recipe for growth instead of disaster. Who knew that shopping during a pandemic would lead to the budding success of so many physical locations?
Meanwhile, the region’s retail scene has changed shades, with investors sniffing around for a bargain. As excitement builds over the Jervis shopping centre’s hefty asking price of €120 million (parking lot not included, mind you), the interest from international and local players has transformed this shopping haven into a page from a thriller novel. The bidding war has practically become its own reality show—who needs scripted drama when you have high-stakes property negotiations?
Despite the recent retail fanfare, the reality check is that not all shopping centres are bathed in glitter. In some corners, stores are still struggling to fill vacant spaces while the sweet scent of new retail opportunities wafts through closed doors. Still, the closure of one brand often serves as a warm invite for newer, hipper options. It seems that retail is on a perpetual merry-go-round of comings and goings, ensuring the phrase “resilience” is now on every business’s lips.
So, here’s to retail! A rollercoaster of ups and downs that reminds us shopping isn’t just about bold offers; it often involves smart strategies, an instinct for trends, and maybe a sprinkle of good fortune. As retailers continuously adjust their sails, it appears the sea of shopping is still rife with possibility—just don’t forget your life raft.
Source: Bannon
