Shoppers of a Whole New Variety
Last week, a unique breed of shoppers swarmed the Jervis shopping centre. No, they weren’t searching for discounts on designer handbags or artisanal avocado toast but were, in fact, placing bids on what can only be described as Dublin’s version of a retail Mecca, now on the market due to its owners, Paddy McKillen and Padraig Drayne, deciding it was time to give their brainchild a new lease on life.
This marks the first time since its 1990s inception—crafted by McKillen, Drayne, and the eminent Paschal Taggart—that the shopping centre has been offered up for sale. It stands as a relic from a time when shopping centres were considered sacred ground and developers clung to them like teenagers to their first smartphone.
Among the contenders for this urban treasure, sources reveal, were the likes of the Comer Group, American property heavyweight Hines, and Peter Horgan’s Lugus Capital—because, of course, what’s a bidding war without a dash of American muscle? Even David Goddard’s Lanthorn threw its hat into the ring, likely equipped with a shiny briefcase and an air of confidence that only comes with a healthy mix of charm and financial backing.
Retail Renaissance or Retail Riptide?
After a bout of retail-related hand-wringing during Covid—when predictions of the death of brick-and-mortar seemed as certain as an Irish summer rain—retail appears to be showing signs of life akin to a zombie in a B-movie. In fact, reports indicate that retail has been the darling of the property investment scene for over a year, attracting capital like a moth to a financially-flammable flame. Surprisingly, offices and private rentals seem to have caught the unpopularity virus instead.
Estate agents are practically high-fiving in the streets—retail accounted for half the value of all property deals in the first quarter of this year! Perhaps, retailers are swapping horror stories of online giants like Amazon for some good-natured rivalry again.
Even Realty Income, the U.S. giant that spent nearly a billion dollars on the Bellagio casino, seems to have staked its claim firmly in the realm of shopping, snapping up eight retail parks this year. It would appear that the retail “death spiral” was just a really bad rumor fueled by heavy pessimism and too many late-night infomercials.
Data Doesn’t Lie, Just Sometimes Misrepresents
AIB’s latest retail report showed consumers are actually spending 2% more in stores than a year ago. You might even say they’re over the moon about it—though they’re not leaving Amazon just yet. The EY Future Consumer index released earlier this year found that 70% of consumers still prefer physically browsing for everyday items. The irony! Remember when we thought shopping in PJs was the future?
Jean McCabe, the CEO of Retail Excellence Ireland, has noticed a trend—customers are flocking back for the “customer experience.” In layman’s terms: they miss the thrill of fondling merchandise before deciding to overspend. Retailers, sensing the shifting tides, are responding by opening new stores like they’re on a quest to collect Pokémon.
The Resilient Retailer and a New Dawn
Products are evolving, too! BPerfect Cosmetics opened 13 physical stores, branching out from their online base like a corporate vine. Brendan McDowell, the mighty warrior behind BPerfect, seized the opportunity after noticing a shopping scene filled with empty units, leading to advantageous negotiations and rents. Who knew that empty stores could lead to the new king of commerce rearing its head?
Now there’s talk of transformation with a new retail centre slated for Cherrywood. While some retail parks have room for expansion, there are challenges aplenty. According to Stewart from Cushman & Wakefield, no one’s rushing to build new large-scale centers—too much risk, perhaps? At least they’re setting aside construction and cautioning against optimism.
Bittersweet Retail Drama
But let’s not paint an entirely rosy picture. Some retail parks are still struggling to fill vacancies, much like that one friend who insists they “just need a little more time” to find a job. With news of major retailers facing tough times, we’re reminded that, in retail, thrills and spills often go hand in hand. Just ask Pepco or River Island about their recent restructuring plans.
However, as Bannon notes, vacant stores pave the way for new brands eager to jump into the market. It seems that as some doors close, others swing wide open with the allure of new opportunities—retail is indeed as intricate as a Shakespearean drama.
So, whether you’re surveying Jervis or snapping up a deal on retail parks below replacement cost, just remember: it’s all a game of wait-and-see, much like attempting to locate a parking space in Dublin during Christmas shopping. Resilience, my friends, is the true currency of this sector!
