Shoppers of a Different Stripe
Last week, Jervis shopping centre in Dublin didn’t see your everyday bargain-hunters; instead, it was a battleground of deep-pocketed bidders. Up to 13 first-round offers were put forth for the mall, discreetly listed on the market by its owners, Paddy McKillen and Padraig Drayne. It’s as if a rare collector’s item had suddenly appeared in a yard sale—only this time, it had an asking price more suited for a mansion than a mall.
This little retail gem hadn’t seen the light of day since its creation in the 1990s by McKillen, Drayne, and their comrade Paschal Taggart. And let’s face it, when it comes to shopping centres, this one is practically a dinosaur, being one of the last still owned by its original developers. Who knew shopping could turn into a real estate thriller?
Among the bidders were some heavyweight contenders like the notorious Comer Group, the US real estate shark Hines, and Peter Horgan’s Lugus Capital. It turns out, when you throw an auction for a mall, everyone wants a slice of the pie—preferably the biggest slice, because who can resist the allure of a shopping centre swarmed by deep-pocketed investors?
Retail has been the star of the investment market for over a year now. Picture the other sectors—offices and private rentals—huddled in a corner, depressed, while retail struts down the street waving its cash like it just won the lottery. Estate agents report that retail accounted for half the value of all deals in the first three months alone. Why? Because the so-called demise of bricks-and-mortar stores during the pandemic was about as true as the Loch Ness Monster.
Our friends at Realty Income, the American property moguls, show no signs of slowing down. After dropping a cool $950 million on a Las Vegas casino, they pivoted to buying eight retail parks in a €220 million deal. You know you’ve made it when your shopping habits include acquiring retail parks faster than most people can collect coupons.
In its latest retail report, AIB delivered the shocking news that in-store spending is actually up 2% compared to last year. Use that information to enlighten any naysayers clutching their online shopping carts like they’re lifelines. The EY Future Consumer index boldly declared that 70% of consumers prefer their shopping experiences in-person, reminding us all that the joy of browsing is as timeless as a bottle of wine.
Jean McCabe, chief executive of Retail Excellence Ireland, chimed in to say customers are returning to stores not just to buy, but to enjoy the “customer experience.” It seems humans are rediscovering that shopping isn’t solely about transactions—it’s also about the smell of freshly brewed coffee wafting through the air and finding joy in that impulsive purchase you didn’t even know you needed.
Oh, and let’s not forget Brendan McDowell of BPerfect Cosmetics, a brand that evolved from online sales to thriving in physical stores. He’s opened 13 locations in just five years after testing the waters with pop-up shops. Talk about taking leaps—more like catapulting into the deep end of retail!
So, whether you’re chasing down a first-round offer for your own shopping centre or just trying to snag a deal on a pair of shoes, remember, the retail world is as unpredictable as a cat on a hot tin roof. But one thing’s for sure: while the headlines may proclaim doom and gloom, retail isn’t just surviving; it’s rediscovering its groove. And that’s something worth celebrating!
