Dunnes Stores has agreed a deal to open a new store in Dundrum Town Centre.
In a move that will be watched closely by the scheme’s existing grocery anchor Tesco, as well as by Marks & Spencer which also has a grocery outlet in the centre, the Irish retail giant will occupy the unit due to be freed up by Penneys’ planned move from the second level of the centre to two floors of the former House of Fraser department store.
The Irish Times understands that Dunnes Stores has signed a 12-year lease and will pay a rent of €2.07 million per year following the expiry of an agreed rent-free period, which market sources estimate to be in the region of 24 months. The new store comprises 40,000sq ft of retail space and a further 14,000sq ft of back-of-house space.
While it is unclear at this point when the new Dunnes Stores will begin trading, Penneys is due to move into its new 60,000sq ft premises on the second and third floors in the early summer of 2023. With the fast-fashion retailer set to trade from its present location until those premises are ready, Dunnes’ arrival at the South Dublin retail hub is unlikely to take place until the autumn of next year.
The deal with Dunnes Stores is a welcome development for Dundrum Town Centre’s owners, UK-headquartered Hammerson and German insurer Allianz, coming as it does at an uncertain time for the retail sector and for the economy.
Dunnes’ decision to fill the void left by Penneys’ move will restore Dundrum to near full occupancy for the first time since the departure in 2020 of House of Fraser. Before its closure, the Sports Direct-controlled group had occupied a total of 139,930sq ft of retail and back-of-house space across four floors of the centre. All of this has now been let, with Brown Thomas already trading from its new store in the 62,000sq ft of space, which had been occupied by House of Fraser on the ground- and basement-floor level of the scheme.
