Shoppers of a rather different kind came out to play at the Jervis shopping centre last week. It was a curious sight, much like a group of penguins trying to fly. Up to 13 initial offers fluttered around for this Dublin city centre mall, which its owners, Paddy McKillen and Padraig Drayne, had discreetly decided to put on the market. Apparently, the mall decided it was time to find a new wardrobe.
This marked the first time the shopping centre had been up for grabs since the fabulous 1990s, when it was developed by the dynamic trio of McKillen, Drayne, and businessman Paschal Taggart. It belongs to that exclusivity club of shopping centres that still cling to their original owners like a child clings to a parent in a supermarket aisle. The nostalgia is palpable.
Among the eager bidders were presumably some who thought they were auditioning for a sketch comedy. The Sunday Times reports that the Comer Group, Hines (sounds like a sophisticated condiment), Lugus Capital, Patron Capital, and David Goddard’s Lanthorn were all in the running. Among them, there were likely quiet whispers of “I’ll give you a fiver for it,” while scoffs of disbelief echoed through the mall’s many corridors.
Now, if we’re keeping score, the spirited bidding for Jervis had followed close on the heels of Marlet’s trio of retail parks, which also generated quite a ruckus—ten initial bids! The retail world, you might say, is having a bit of a renaissance, somewhere between ‘there’s very little left to buy’ and ‘what do you mean, bricks-and-mortar are dying?’
For more than a year, retail has shone bright in the property investment cosmos, attracting capital like bees to honey, or perhaps more like consumers to a seasonal sale. The competition? Muted, like the sound of a cat tiptoeing through a room full of sleeping dogs. As much as we dreaded the doom and gloom forecast during Covid, the retail sector seems to have made a dazzling comeback—think ‘Phoenix rising from the ashes’ but in a shopping cart.
Statistics reveal an uplifting tale. AIB’s latest retail report for Q1 this year has revealed that in-store consumer spending nudged up by 2% compared to last year. The numbers might as well have been accompanied by a marching band. Following this upward trend, EY’s Future Consumer Index found a thrilling seven out of ten consumers prefer in-store shopping for their everyday items. Because who wouldn’t want to battle the crowds for a loaf of bread?
Jean McCabe, the chief executive of Retail Excellence Ireland, stated that shoppers have returned for the “customer experience.” Ah, yes! The ultimate thrill of waiting in line for a coffee while trapped under fluorescent lights. Retailers, in response, are on a quest to open more stores and achieve economies of scale—something that would make economists swoon. Shopping centres are in a DIY frenzy, extending food and beverage offerings and even adding entertainment venues, as if we needed another reason to procrastinate our responsibilities.
Brendan McDowell, the visionary founder of BPerfect Cosmetics, started out selling online but has transitioned to physical stores, presumably to ensure he gets his daily step count in the process. He knows the importance of testing the waters, evident from his approach of opening pop-up stores before signing long-term leases. “It was a good time to open a store because we could negotiate better rents and longer rent-free periods,” McDowell said, likely while holding a celebratory glass of champagne.
As much as we’d love for these shopping tales to end with confetti and fireworks, reality strikes. Not all is rosy in retail land. Some shopping centres, particularly those in less glamorous locales, are still wrestling with high vacancy rates. Meanwhile, tales of corporate closings are unfolding like a soap opera—who will survive? Who will thrive? The suspense is palpable. But fear not, every closure paves the way for a fresh start, waiting to be filled by sprightly new brands eager to stake their claim. Resilience, it seems, is the name of the game.
