The future of Irish bricks and mortar retail has been much debated over the past 15 years due to the effects of the 2008 banking and property crash, the rise of ecommerce, Brexit, the Covid-19 pandemic and soaring inflation.
Two recent signals perhaps give a glimpse into the future. In a trading update to Eason shareholders last month, David Dilger, chairman of the books and stationery retailer, forecast that turnover for the current year would be down about 30 per cent on the same pre-Covid numbers “reflecting the slow return of customers to retail stores”.
“Unfortunately, we believe the significant challenges facing city centre locations, particularly in Dublin, will be long-lasting,” he added. This was a nod to the fact that hybrid working has emptied offices in the city centre on many days of the week, impacting footfall on the main shopping thoroughfares.
Internal transaction
Eason had planned to sell its flagship O’Connell Street store in Dublin on the open market but has recently decided to conclude an internal transaction between the property and retail arms of the business, as retail property valuations have been impacted by Covid.
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Across the capital, a group of Davy investors last week submitted plans to redevelop the Stephen’s Green Shopping Centre, one of the biggest in the city centre. DTDL Ltd plans to add two storeys to the building and to increase the floor space by 21,419sq m.
But it is proposing a net reduction in the retail floor area and a reduction in space for bar and cafe/restaurant use. It also plans to take out 138 car parking spaces.
The curiosity, even allowing for its prime location at one end of Grafton Street, is that it is planning to add 35,000sq m of office space at the site. This at a time when hybrid working models have become embedded and the Government is proposing to legislate for the right to remote working.
Still, if the Davy fund gets the green light for the development and can fill the offices, it would provide potential customers for the Eason shop in the centre, presuming it survives the retail cull there.
