THE redevelopment of its main department store in Henry Street, could increase pretax profits for the Arnotts group in 1997 to £7.5 million, it was claimed at the company's annual general meeting yesterday.
The company chairman, Mr Thomas Toner said he was confident such market forecasts would "be borne out". In 1996, pretax profits rose to £6.8 million for the year end of January 1997.
The redevelopment is the biggest expansion in the history of the group. Mr Toner said the extended store, which will have additional trading space in excess of 130,000 square feet, will position the group's flagship store "as the preeminent retail outlet in the Henry Street area, now Ireland's largest shopping location in terms of shopping numbers".
The expansion project has achieved its budget target and is expected to open in early Autumn, although the five storey carpark will open at the end of next month.
Mr Toner said the company's 1996 performance, pretax profits increased by 25 per cent, was "impressive" considering the disruption caused at Henry Street by the development work.
Mr Toner stated that the new development would help Arnotts compete with the Jervis Centre, which is situated close to Henry Street. He said Arnotts was not "overly worried" about the increasing share of the retail sector by British owned firms.
He pointed out that the increase in space would cause "very little rise" in overheads and the extension was being funded by a combination of borrowing and retail profits.
The overall cost will be £39 million, of which £16 million will be spent this year. About 60 per cent of the new store space will be used by outside stores. Mr Toner said he was confident many of these would be Irishowned businesses.
