Shoppers of an unusual kind swarmed the Jervis shopping centre last week, proving that retail therapy isn’t just a pastime but a serious investment strategy. Up to 13 first-round bids were flung at the Dublin mall, which its owners, Paddy McKillen and Padraig Drayne, decided to sell—because who doesn’t want to make a tidy profit from retail madness? It’s only the first time this shopping centre has been on the block since the ’90s, when McKillen, Drayne, and Paschal Taggart styled themselves as the cool kids on the block.
Among the bidders were a delightfully eclectic mix. The Sunday Times has it on good authority that the Comer Group, US property giant Hines, Peter Horgan’s Lugus Capital, and a delightful line-up of others played the role of eager beavers. Not to mention, David Goddard’s Lanthorn made an appearance—perhaps to check if they could squeeze in a second Starbucks. It seems the auction atmosphere was reminiscent of a Black Friday sale at Walmart, minus the police interventions.
The event was particularly noteworthy, considering it followed a ripple of interest in Marlet’s retail parks scattered across Dublin, Louth, and Tipperary. Ten bidders rushed in like it was a buy-one-get-one-free deal. Retail is enjoying a renaissance, albeit at a time when office sales are about as appealing as a soggy slice of bread. If retail was a contestant on a reality show, it would be the clear winner for “most improved” after the phony drama of the pandemic.
Statistics show that in the first quarter of the year, retail managed to snag half of the transaction value in the property market—essentially saying, “Look at me, I’m back!” Meanwhile, US heavyweight Realty Income, which threw around $950 million on a casino in Las Vegas like it was Monopoly money, has opted for shopping parks since it clearly wasn’t getting enough glee from blackjack.
All those doom-and-gloom forecasts during the pandemic about the death of traditional retail? Turns out they were wildly exaggerated, like claims about low-carbs diets being the answer to everything. AIB’s latest report revealed a 2% rise in in-store spending compared to last year, marking a bright spot on the retail horizon. Hooray for grocery store impulse buys! The EY Future Consumer index, with all its stately gravitas, announced that 70% of consumers prefer getting their everyday items in person—who knew we were all so starved for human interaction?
Jean McCabe, the CEO of Retail Excellence Ireland and likely the most optimistic gal in retail, noted that customers are flocking back for a personal touch. This trend is driving retailers not just to open more outlets but also to add entertainment venues that make it impossible for families to leave the mall until they have consumed at least one overpriced soda and multiple pretzels. BPerfect Cosmetics’ Brendan McDowell even transitioned from his online ventures to opening physical stores—proving that sometimes it pays to actually sleep in the same timezone as your customers.
In a world where retail parks are reverting to institutional ownership like it’s a bad breakup in a rom-com, Max Reilly, head of capital markets at JLL, chimed in that the retail park sector has been so steady it could be an opera singer hitting the high notes. There’s a lingering demand, and with retail park occupancy soaring, it’s almost comical that new parks aren’t being built, as the cost of construction has everyone shaking their heads. In the end, while there might be some turbulence in the industry, Bannon pointed out that vacant spaces create opportunities for new brands—like a phoenix rising from the ashes of outdated fashion. Well, sort of.
