After some concern about footfall in the main shopping districts of the capital in the first half of this year, there are real grounds for confidence for the Christmas shopping period.
Importantly, the pipeline of international investment is looking strong, with Swiss watch retailer Swatch having recently opened on Grafton Street. This is close to other new investors, which include US athletic footwear chain New Balance. Italian make-up store Kiko Milano just opened up on Henry Street for its first shop in the Republic. It is understood a second Kiko Milano store on Grafton Street will open early next year, in the unit formerly occupied by Claire’s.
There is much excitement over the appearance at 62-63 Grafton Street of high-end yoga apparel retailer Alo Yoga, a favourite of celebrities. The name of the Los Angeles-headquartered Alo is an acronym for “air, land and ocean”, and the brand is often worn by celebrities such as Taylor Swift, Katie Holmes, Hailey Bieber and Kendall Jenner. The company was remaining tight-lipped about its opening date this week, but it is expected to be announced shortly.
While vacant outlets remain an issue on the street, more new brands continue to make their way to Dublin city centre.
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Also readying a new Grafton Street shop is Spanish womenswear brand Mango, which continues its expansion plans in Ireland. Following its new shop in Dundrum Town Centre, and a refurbishment of its Henry Street outlet, the fashion retailer is set to open a new shop towards the end of the street.
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Eoin Freeney, director of retail at Colliers, is especially upbeat about the new tenant for 42 Grafton Street. The former Ted Baker outlet is a high-profile opportunity, which he says has already received five firm offers from international clients. Feeney says much of the interest has come from fashion and cosmetics retailers.
He is also excited about the new Grafton Place/60 Nassau Street development, which includes the former House of Ireland site. Celebrated clothing and homeware brand Arket, which is owned by the Swedish group H&M, has proved to be a hugely popular draw for visitors to Covent Garden and Regent Street in London since opening for business there in 2017. It is understood to have agreed a 10-year lease for 1,021sq m (11,000sq ft) of space across the ground- and first-floor levels of Grafton Place, which will probably open in 2025.
Feeney says Grafton Place provides the larger style of retail outlet, which so many investors are seeking.
On this point, Feeney would like a change to the Dublin City Council development policy which, he says, restricts retail outlets spanning several adjacent buildings.
He instanced the recently opened Zara store on South King Street as an example of how investors’ size requirements can grow. Spanish-owned Zara has expanded from 14,000sq ft to 33,000sq ft, after the absorption of the H&M space next door. It is now the largest fashion store in the Grafton Street area, not including department stores. “They are a good example of how retailers requirements are getting bigger,” he says.
“There is no doubt retailers are looking to upsize and add more locations. [Dublin City Council] should consider relaxing the rules on Grafton Street planning policy,” he says.
EU forecasts show Ireland’s economy is expected to grow by 1.2 per cent in 2024 and 3.6 per cent in 2025, supported by an improvement in global trade, falling inflation and a strong labour market. All of which supports some optimism for the medium-term future at least.
Optimism is also evident in the Dublin Economic Monitor, a publication produced by Grant Thornton, for the four Dublin local authorities. The September issue of the Economic Monitor notes retail spending in the capital continues to increase, remaining in advance of the national trend. “Spending by consumers [in Dublin] has now risen quarter on quarter in every quarter for the last four years,” the September issue noted.
The relief in Richard Guiney’s voice, in response to an upturn in footfall in the city centre, is palpable. Footfall was down by about 6 per cent in June, on 2023 levels, based on year to date, he says. However, the chief executive of the business organisation Dublin Town was pleased to note that by September, the situation had improved significantly, and was down by about 2.3 per cent across the city.
New hotels planned for Capel Street and Middle Abbey Street will help to rebalance the number of hotels – and their restaurants – which are currently concentrated on the southside, he adds.
While recent traffic restrictions did not see an expected outpouring of anguish on the part of traders, he says visits to the city are now more for leisure and cultural reasons. “Dublin city retail will be here in the long term, but it is not the same draw that it would have been 10-15 years ago,” he says. Among the changes are going to be fewer cars being driven into the city. “There is scope to address this with more deliveries,” he says.
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