PEDESTRIAN counts on Dublin's prime shopping streets indicate that the Irish retail sector is still performing well. Grafton Street experienced a remarkable year-on-year increase in footfall of almost 44% during the third quarter of the year (Q3, 2007), with Henry Street recording a 26% increase during the same period.
Despite . . . or perhaps because of . . . the poor summer, consumer spending has remained strong, with retail sales increasing by 6.8% up until July.
A new report on the retail market published by CB Richard Ellis (CBRE) points to a number of ambitious national rollout programmes being pursued by domestic and overseas operators as evidence of continuing confidence in the sector.
Zara has announced that it will anchor the second phase of development at the Pavilions scheme in Swords, which is due to open next month, while Marks & Spencer and New Look are both to open units at the Fairgreen Shopping Centre in Mullingar. Harvey Norman expect to open four more stores in Ireland over the next 12 months and Heaton's recently announced plans to extend its domestic chain of outlets from 58 to 100 over the next four years.
Meanwhile, Tommy Hilfiger is expected to open an outlet on Grafton Street imminently and the Disney Store is also looking for an outlet on the street.
Redevelopment of existing retail centres is now more prevalent than applications for new schemes.
In recent weeks, another phase of development at Donaghmede Shopping Centre in Dublin and a new 31,000sq m shopping centre in Wexford were granted planning permission.
However, plans to double the size of Ballymun Shopping Centre were rejected by An Bord Pleanala which is currently reviewing appeals for a new shopping centre in Mullingar and Arnotts Northern Quarter development in Dublin city centre.
"It is reasonable to assume that a reduction in housing completions in Ireland will lead to a lower rate of expansion in some sectors of the Irish retail market in the medium term, " says Cormac Kennedy of CBRE's retail division. "However, for the most part, the retail sector, which accounts for one in seven workers in Ireland, appears in very healthy shape as retailers prepare for what is likely to be a very strong Christmas trading period, regardless of wider economic and financial concerns."
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