THERE WAS an “air of sadness” in Rathdowney, Co Laois, yesterday as locals learned that Ireland’s first factory retail outlet is to close in May.
The closure of the Rathdowney Shopping Outlet will affect about 50 local jobs and result in six direct job losses for those employed at the centre.
Opened to much fanfare in 2002, the Rathdowney Shopping Outlet was badly hit by the economic downturn. The centre was once home to more than 30 international and Irish retail tenants offerings discounts off high-street prices.
The town has a population of about 1,000 people and the news has come as “a major blow to the people of Rathdowney and the surrounding areas”, said local councillor John King (FG).
“To have an outlet closed at this time, it has a major effect on the community and there is an air of sadness in the place.”
Mr King believes a number of factors led to the demise of the centre, the most recent including the increasing price of fuel for travelling shoppers.
“We would be hoping that there would be an offer for something else, maybe a third-level facility for veterinary or something else,” he said. Mr King hopes some of the remaining seven businesses will be able to relocate to Portlaoise.
Laois Chamber of Commerce president Breda Stackpool described the announcement as very unfortunate but she expressed a hope that something positive would emerge at the centre. She said the announcement should be seen as an opportunity for the outlet rather than the end of the shopping centre.
Ms Stackpool said the announcement was no reflection on trading generally in Laois, which is very much “open for business”.
AWG Property – which runs the centre – said the operation of the centre had been challenging almost from the beginning.
They cited delays to upgrading the roads network, as well as a surge in competition with new shopping centres opening in Kildare, Portlaoise and Kilkenny, as reasons for a decline in footfall.
In addition, the downturn in the Irish economy and in the retail trade had seen a reduction of tenants to just seven, which had led to the regrettable decision to close the facility, AWG said.
AWG Property managing director Tony Donnelly said: “We have worked extremely hard over the past decade to promote the Rathdowney Shopping Outlet against a backdrop of continued new retail competition in the area and delayed infrastructure improvements.
“We have continued to invest financially in the centre over that time but, regretfully, trading conditions in Ireland for retailers have led to the loss of some key tenants, leading to this difficult decision,” he said.
“We are acutely aware of the importance of the outlet to the local community both as an amenity and as a significant source of employment. We have always appreciated the support of the community and of Laois County Council,” Mr Donnelly said.
“The outlet comprises of 41 units totalling 70,000sq ft and 15 acres of zoned general business land. We wish to engage constructively and quickly with any interested parties to identify alternative uses for the facility, to secure and hopefully increase local employment,” Mr Donnelly said.