Why Ireland for retailers? Why Not Ireland.

/in , ,

When a retailer considers expansion within or entry to a new territory, they must assess a wide range of factors to make a financially viable decision. Rather than Why Ireland, the Bannon Retail Team are using economic data to demonstrate to retailers – Why Not Ireland.

To start, there are several key statistics to Why Not Ireland:

  • Ireland is 1st in Europe for Economic Growth.
  • The country is 1st in the World for Business Productivity and Efficiency.
  • Census 2022 reported Ireland’s highest ever population of 5.12 million.
  • Ireland’s population has grown 21% in 15 years and is set to reach 6.334 million by 2050. This is the second biggest population growth projection in Europe. In comparison more than half of Europe is projecting a population decline.
  • Ireland now has more than 2.63 million people in employment the highest level ever recorded. This growth has led to higher wages and higher disposable income levels.
  • Irish households are now 40% wealthier than in 2007.
  • Irish household savings hit an all-time high in June 2022 of €145 billion euro while household debt continued to decline.
  • Retail sales are 29% above 2005 levels.
  • Ireland welcomed 7.2 million visitors during the first half of 2022, in comparison 2019 saw 11.3 million tourists for the full year.

The statistics don’t lie. These hard facts are aiding the post Covid retail recovery, providing confidence to expand to retailers and investors. This is evident in the number of new entrant brands who have recently signed expansion deals in Ireland including Lego, Russell & Bromley, Flannels, Carhartt & Pret A Manager to name a few.

The Bannon Retail Team is in active discussions with a range of additional new entrants. Some are considering Ireland ahead of the UK for store expansion. This is a significant shift away from the traditional route of opening in the major urban UK markets first.

Increased spend and the resulting increase in turnover is aiding retailers to make decisions to expand outside of the prime focus of city centres in Dublin, Cork, Limerick, and Galway. For example, Bannon recently welcomed Rituals to Marshes Shopping Centre in Dundalk. This demonstrates how a brand’s confidence in Ireland has seen retailer expansion strategy grow from Grafton Street to regional towns.

Whilst it might be viewed as a small country for expansion, the data provides a strong business case for retailers to decide Why Ireland should be a primary focus in their ongoing expansion plans.

 

Author:                  Jennifer Mulholland, Divisional Director, Bannon

Date:                     12th October 2022

Bannon Retail Pulse Report – September 2022

/in , , ,

Bannon’s latest monthly Retail Pulse has now gone live. In this publication Neil Bannon shares some insights into the ongoing decline of online fast fashion retailers and Darren Peavoy focuses on the rebound in footfall levels which has been seen in Dublin City Centre.

To view the full report, please click here.

Completely Retail Marketplace

/in ,

Super day meeting with international retailers at Completely Retail Marketplace in London for our retail team, James Quinlan, Jennifer Mulholland and Darren Peavoy.

Very positive interactions with plenty of requirements for the Irish market in 2023.

 

Irish Consumer Sentiment

/in , ,

Predictably Irish Consumer Sentiment has dropped significantly in the face of an onslaught bad news; interest rates up, cost of living crisis, energy bills and the ongoing War in Ukraine. What will be interesting to watch is how this drop in sentiment manifests itself in retail sales.

To date year on year retail sales have held up well. Expect to see a divergence in performance across the retail sector as consumers prioritise certain spend categories over others. Sectors which are particularly sensitive to energy costs and and are in the highly discretionary spend segments will likely suffer the greatest squeeze whilst need based spending should hold up well based on strong demographics.

Penneys is now open in The Square Tallaght

/in , , ,

It is our pleasure to welcome Penneys to The Square Tallaght today. The addition of Penneys is a milestone moment in the history of the Centre.

In the past number of months, we have welcomed a number of new occupiers to the Centre, including a new state of the art cinema. The Penneys opening is another significant investment into the Centre and we wish them every success.

Congratulations to our Bannon team, asset managers Sigma Retail Partners, facilities consultants Evia – Sustainable Facility Services, the centre management team at The Square Tallaght and all who have contributed towards the project.

The Proven Resilience of Ireland’s Community Shopping Centres

/in , , ,

What is a Community Shopping Centre? 

Community Shopping Centres are characterised by a large supermarket anchor usually occupying over 50% of the scheme’s floor area. The balance of occupiers is typically complimentary or ancillary to the grocery offer, providing daily and weekly convenience needs to serve the local catchment such as butcher, pharmacy, coffee shop etc. These offers typically include local services, food & beverage, and high-frequency of purchase, low-cost retail products. While fashion offers may be included, these will generally be dependent on the catchment and competitive environment. Community Shopping Centres do not have the quantum of space compared to larger schemes to support a destination comparison or fashion led retail experience. 

How did COVID impact on these centres? 

The impact of COVID retail trading restrictions had different effects on footfall levels between shopping centre categories. The prevalence of essential retail uses within Community Shopping Centres meant the impact was relatively minor.  Footfall levels stayed at 80% of pre COVID levels in 2019 and turnover, in many cases, increased as physical retail spend was funnelled into essential services and products only. Comparison led schemes by contrast saw a drop of 40% of footfall during the same period. While the dominance of essential retail in Community Shopping Centres served to preserve footfall during trading restrictions, there has been a significant recovery of footfall over the last twelve months. Footfall levels in Community Shopping Centres are now back to 93% of 2019 levels. 

How will the increase in the cost-of-living impact these centres? 

During periods of recession and high rates of inflation, households still require essential goods and services. An increase in the cost of goods or a decrease in available income will see a larger portion of household expenditure directed towards the purchases of these goods. The net effect is that there is less available spend for want and luxury type goods. As the retail offer in Community Shopping Centres is generally need-focused, these centres are well positioned to perform relatively well and maintain occupier sustainability in difficult market conditions. The reliance on local catchments with short journey times also bodes well for these centres as the increased cost of fuel feeds into decision making for shoppers.

The need-focused nature of many typical Community Shopping Centre occupiers positions this category of centre to hedge against inflationary or recessionary shifts in the retail property market.  

 

Author:                 George Colyer, Surveyor, Bannon

Date:                     14th September 2022

Bannon Retail Pulse Report – August 2022

/in , , ,

Bannon’s latest monthly Retail Pulse has now gone live. Our focus in this publication is on New Developments, where we identify a number of new retail schemes due for completion in the next 24 months. On our footfall monitor more positive trends feature with High Street footfall, by example, showing a 25% increase year on year.

To view the full report, please click here.

Pret A Manger is now open on Dawson Street, Dublin 2

/in , ,

Pret A Manger opened their first store in Ireland on Friday. Located on Dawson Street, Dublin 2 the store had a busy morning and we managed to visit between that and the lunchtime rush to get a full tour. The Pret a Manger team are so impressive in terms of their approach to quality and attention to detail.

This will no doubt be a great success and we are proud to be part of the team bringing the brand to Ireland.

Techstar in Castlewest Shopping Centre, Ballincollig, Cork

/in , ,

Congratulations to Techstar in Castlewest Shopping Centre, Ballincollig, Cork on making the list of the top 100 friendliest stores to visit in 2022 awarded by Retail Excellence Ireland and now move on to the National Awards to be held in the Galmont Hotel Galway on the 12th November.

Great to have one of our new occupiers achieve this.

To view the list, please click here.

Babydoll Vintage Clothing is now open in Stephens Green Shopping Centre.

/in , ,

Bannon is delighted to welcome Babydoll Vintage Clothing to Stephens Green Shopping Centre.

We wish the team the very best of luck with the opening.

Lego is now open on Grafton Street

/in , ,

An iconic brand for an iconic street. It’s brilliant to see LEGO open their first Irish store on Grafton Street. Well done to the team who made this happen, our clients Irish Life and our joint agents Savills Ireland.

 

We haven’t seen so much activity on the street as in recent months, with a further 4 new stores currently being fitted out, defining Grafton Street as a world class shopping destination.

Retail Sales vs Consumer Confidence

/in , ,

August recorded a small but continuing drop in consumer confidence, to a 22-month low, as households prepare themselves for further price pressures according to KBC Bank Ireland. What is interesting is the mismatch between what Irish consumers are saying and what they are doing.

Retail sales which traditionally track consumer confidence with a short lag period, have remained robust and in recent times even grown whilst confidence has dropped.

Thérapie Clinic is now open at Marshes Shopping Centre

/in , , , ,

Another fantastic addition to the Tenant mix at Marshes Shopping Centre diversifying and complementing the existing offer.

Best of luck Thérapie Clinic.

The Warehouse Gym opens in Gateway Shopping Park, Co. Galway

/in , ,

Bannon welcomes The Warehouse Gym to Gateway Shopping Park, Knocknacarra, Co Galway.

The Warehouse Gym is a great addition to the shopping park and no expense was spared in its development.

Bannon Retail Pulse Report – July 2022

/in , ,

The Bannon Retail Pulse July 2022 issue is now available. This month, our Executive Chairman Neil Bannon focuses on the juxtaposition between robust economic statistics and a persistently negative narrative. Read Neil’s commentary ‘The Most Depressing Boom’ on page 4.

To view the full report, please click here.

Thurles Shopping Centre 25th Anniversary

/in , , ,

Wildflowers in full bloom at Thurles Shopping Centre ahead of the centre celebrating it’s 25th Anniversary this weekend, Saturday 25th June.

Thurles Shopping Centre have a Family Fun day planned, with Beat FM broadcasting on site for the afternoon along with Willy Wonka, magic shows and fun and games for all the family.

Bannon Retail Pulse Report – June 2022

/in , ,

Our June 2022 Bannon Retail Pulse is now available. This month, as well as keeping track on our indicators which continue to improve, we focus on Grafton Street. We forecast that current vacancy is likely to drop significantly as 2022 progresses with a further enhancement of the mix and offerings on our premier retail street.

To view the full report, please click here.

Gorey Shopping Centre

/in , , ,

Managing 25% of Ireland’s Shopping Centres, our Property Management team is very proud of the scale and reach of our growing portfolio. On an ongoing basis, Bannon engages with various contractors to optimise user experience and maintain the appearance and accessibility across our retail portfolio. One such example is Gorey Shopping Centre.

A big thank you to everyone involved in recent projects, namely Arkomax (Refurbishment of Public Toilets & Installation of Parent & Child Facilities) and Breffni Group (Car Park Works). Also, a big thank you to the ever committed Niamh O’Byrne (Gorey Shopping Centre – Centre Manager).

TEAM – Together Everyone Achieves More!

Retail Property – One Size Does Not Fit All

/in , , ,

The challenges faced by retail and the effects on performance metrics against the various Covid trading restrictions, have triggered the need to reconsider how retail assets should be categorised and considered. ‘Retail asset’ is a broad, all-encompassing term used to capture Shopping Centres, Retail Parks and High Street/Main Street Shopping. At Bannon, we have extensive data and performance metrics across these retail asset types. This information demands a rethink on how we talk about the sector. While property is inherently heterogenous, with each asset having its own idiosyncrasies, we can refine asset types based on shared and similar characteristics, which overall, relate to the role and function these assets play in their local catchment and community. 

How various retail assets have reacted to and been affected by the restricted retail trading conditions that began in early 2020, have driven the need to re-categorise these assets. Areas considered include their ability to perform their function, the extent to which they remain functional against changes in market conditions and the characteristics of each scheme. This has provided a more focused approach that can be used to better inform sustainable tenant mixes and pricing analysis.  It is through our ability to combine analysis with Bannon’s unique data insights, that we endeavour to display thought leadership in the commercial property market. Based on this, Bannon will release articles on Community Shopping Centres, Retail Parks and Shopping Parks and High Streets that discuss the drivers that shape and influence key areas. They include their footfall, the opportunities and challenges their occupier mix face against emerging market trends and the role and function of these asset types within the market. 

Watch out for this series of articles over the summer.

 

Author:               George Colyer, Surveyor, Bannon

Date:                   20th June 2022

Bannon – The Conduit to A Seamless Acquisition Strategy

/in , , ,

The Bannon Retail team is acquiring stores on behalf of national and international retailers with a variety of use categories including Card Factory, Lush, Pret A Manager, Eason, Jump Juice Bars, Matt Britton, McCabes Pharmacy, Tuthills, Gino’s and L’Ombre Hair & Beauty.  As part of our work, we advise them on their rollout strategy across Ireland.

On meeting a potential acquisition client, we study the retailer to understand their brand placement and their customer profile. This together with other research allows us to accurately assess where best to locate them.

We secured the acquisition instruction for Smiggle (the Australian go to brand for school, lifestyle and stationery products) and by way of a sample case study we set out below the service provided and our contribution to a successful store roll out.

 

The Brief:

On successfully pitching our acquisition services, our brief from Smiggle was to provide a full service in identifying new store locations and negotiating lease terms on their behalf.

Stage 1:

Smiggle was a new entrant to Ireland.  We began by educating them on the current economic climate, the retail market within Ireland and the retail hierarchy across the country. Leasing structures in Australia are quite different to those commonly used in Ireland.  We prepared a detailed presentation on the standard leasing terms in Ireland to include lease length, owner and occupier renewal rights, upwards downwards rent reviews, break options and sub-letting terms. We also assisted them in securing a legal team to represent the company in Ireland.

Stage 2:

Understanding the retailer’s model, we used our expertise to advise where their initial focus should be placed for unit acquisition. We completed a table of target locations and collated an individual pack on each detailing footfall, scheme size, current retailers, available units and sample costs. We toured the Country with them and agreed the target towns and cities where they wished to secure representation.

Stage 3:

We began searching for suitable available units within the agreed target locations. We commenced negotiations and proceeded to agree rental terms, tenant incentives, lease structure, break options and additional tenant specific requirements. On finalising terms, we assisted the legal team in bringing the lettings to lease signing. We assisted them in appointing a fit-out contractor and liaised with the team to provide unit plans and the technical information required to prepare fit out drawings for owner approval.

Outcome

Smiggle saw a stronger opening in Ireland than in any other territory they trade in. The conclusion to the roll out strategy saw the opening of stores in Dundrum Town Centre, Blanchardstown Town Centre, Swords Pavilions, Ilac Centre, Mahon Point Shopping Centre, Crescent Shopping Centre and Winthrop Street in Cork.

Based on our understanding of the market and the Smiggle brand, our advice was an initial roll out of 5-10 store openings. We achieved this target, and the occupier was extremely pleased with our seamless acquisition strategy and the stores secured.

The Bannon Retail team specialises in both owner and occupier representation nationwide. We complete on average c. 170 retail transactions per year. Understanding the market is key whilst advising both owners and occupiers across their portfolio. We collect over 250 pieces of turnover data weekly/monthly, and we use this data and experience to maintain insight as the leading advisors to the retail market across the country.

Author:                Jennifer Mulholland, Divisional Director, Bannon

Date:                   15th June 2022

 

Neil Bannon on Dublin City Centre

/in , ,

One of our recent Retail Pulse reports was referenced by David McWilliams in his article in Saturday’s Irish Times. The article suggests that one of the reasons for vacancy in the city centre is that Owners are demanding rental levels “priced to a pre COVID world” hoarding vacant property. The reality is very different, from a position of relative stability through 2018 & 2019 High Street rents dropped sharply, i.e. 40% by Q4 2020. They started to recover some of this loss in 2021 but are still down about 30% from 2019 levels. Current values on Grafton Street are just over half the level they were at the Celtic Tiger peak whereas values in every other real estate sector are now above their 2007 level. These are not my figures but are sourced from the MSCI Index.

From the Bannon perspective we have recently concluded 3 deals on Grafton Street and are in active discussions on many more. I don’t share David’s pessimism on Dublin City Centre and expect to see a more diverse and cosmopolitan retail mix emerge over the next year as these deals come to fruition, perhaps even a “vivacious metropolitan centre”.

If you want access to data on the retail and other sectors, click here.

 

112/113 Grafton Street

/in , ,

Bannon is delighted to have been part of a very successful launch today of 112/113 Grafton Street. A superb retail building redeveloped to the highest standard by Irish Life Investment Managers. 13,000 sqft of top quality space now available through Bannon and joint agent Savills.

Bannon adds Citywest Shopping Centre to its impressive retail property portfolio

/in , , , ,

Date 31st May 2022: Retail property market leader, Bannon, has been appointed by Ardstone to manage Citywest Shopping Centre.  This is the latest in a series of new wins for the firm.

The Citywest area was launched in the 1990s with the building of the business campus and hotel, the largest in the country.  The development, was followed by an explosion of residential property, with planning in place for additional houses and apartments.  In 2007 Citywest Shopping Centre was opened with retail units varying in size from 816 to 7,502 square feet.

Bannon is Ireland’s largest, domestically owned commercial property consultancy firm.  It manages over 50 retail shopping centres and retail parks across the country, covering seven million sq.ft. of commercial real estate worth c. €2 billion.  As market leaders, Bannon has advised and managed the country’s most notable retail spaces in the last thirty years such as Stephen’s Green S.C., Dundrum Town Centre, Blanchardstown S.C., Swords Pavilions. and The Square Tallaght.

Commenting on the new addition to their portfolio, Director of the Bannon Property Management team, Ray Geraghty said “Bannon are delighted to be working with Ardstone on what is another very significant shopping centre instruction. This instruction is further validation of the unrivalled expertise which the Bannon property management team possess. We are looking forward to bringing this experience to bear over the coming months which will be particularly relevant given the proposed residential development which Ardstone have planned for the site adjacent to the shopping centre.’’

For further information contact: Ray Geraghty Email: rgeraghty@bannon.ie Tel: 01 6477900.

Neil Bannon joined Newstalk Bobby Kerr on Down to Business

/in , ,

Neil Bannon joined Newstalk Bobby Kerr on Down to Business on Saturday to discuss the medias negative perception of the Irish retail market.

While a negative narrative persists in the media, Neil points to CSO data that shows that the three-month moving average of retail sales values is substantially higher in March 2022 than it was Pre-Covid.

Neil & Bobby also discuss the future of Irish High Streets, how they were affected by Covid and the reset on Grafton Street with the arrival of new brands.

For the full discussion, please click here.

Bannon Retail Pulse Report – May 2022

/in , ,

We are delighted to share our latest Bannon Retail Pulse.

The ongoing global macro-economic uncertainty is having a significant impact on consumer sentiment. Inflationary concerns coupled with an anticipated rise in central bank interest rates has provided a more uncertain backdrop and is something we will be keeping a close eye on in the coming months.

To view the full report, please click here.

Consumer Sentiment

/in , , ,

Sustained slide in Irish consumer sentiment points to major reassessment of economic and financial conditions.

The KBC Irish Consumer Sentiment Index slipped again in May for the fourth consecutive month. The previous four occasions this has happened in the twenty-six-year history of the survey reflected circumstances in which consumers faced marked difficulties in assessing potentially momentous changes in economic conditions. The last time the survey slipped for four consecutive months was in the summer of 2019 amid concerns over Brexit.

The current slippage follows the conflict in Ukraine and electricity/gas price hikes of 15-40% implemented by energy providers in the past two months. However, credit/debit card and Retail Sales data do not yet point to any material slowdown in spending, with expenditure on hard hit sectors such as accommodation and hospitality still recovering in May.

Bannon Retail Pulse Report – April 2022

/in , ,

We are delighted to share our latest Bannon Retail Pulse. This month we focus on the Food & Beverage Sector where we report on strong take-up and low vacancy across the sector. Our Retail Pulse is updated monthly and all are available on our website bannon.ie.

To view the full report, please click here.

 

Tipperary Crystal is now open in Stephens Green Shopping Centre.

/in , ,

Bannon is delighted to welcome Tipperary Crystal to Stephens Green Shopping Centre.

We wish the team the very best of luck with the opening.

Benefits of Property Management Due Diligence for Investors

/in , , , ,

At Bannon we manage over 75 individual commercial assets including Shopping Centres, Retail Parks, Neighbourhood Schemes, Multi Let and Single Let Offices. This represents over 7 million sq.ft of commercial real estate in Ireland, with an estimated value of €2 billion.

Given our involvement and exposure within this industry, we are regularly engaged to assist purchasers with the property management due diligence process associated with large scale property transactions. This process is particularly complex when it comes to the purchase of multi let retail assets.

When concerns are presented, an investor can only then appreciate the importance and benefits of a pre – sale due diligence. It highlights the perils associated with buying an asset and ultimately determines the price they will pay for the asset on closing.

A typical due diligence process will involve several specific fields of expertise, namely: Legal, Tax, Building Surveying, Planning, Sustainability, Property Investment and Management.

Once engaged, Bannon will work closely with the relevant advisors to ensure a thorough review of all property management related topics are analysed. As part of a due diligence process for a commercial property we would typically provide advice concerning the following items;

  • Lease review & creation of a bespoke tenancy schedule suited to our clients’ requirements
  • Rent arrears
  • Service charge arrears
  • Service charge budget & apportionment
  • Benchmarking of service charge budget line items Vs Bannon portfolio
  • Floor area measurement comparison
  • Sinking fund
  • Insurance programme review (Incl. reinstatement cost assessment)
  • Benchmarking of footfall Vs Bannon portfolio (if applicable)
  • Facilities management contract review i.e., cleaning, security, landscaping, PPM (Preventative Property Maintenance) etc.

The list above is dependent on the complexity of the asset in question and can be amended to take account of asset specific variables.

Ordinarily the above information would be readily available from a data room which would be set up by the vendors agent. Once the information is received it takes some time to comprehend and consolidate such a vast quantity of information into a format which is easily understood by both our client and legal representative when negotiating the finer detail on closing of a sale.

In advance of such negotiations, we will equip our client with the findings from the due diligence process, paying particular attention to areas of concern. Common concerns which can arise from a due diligence process include;

  • Apportionment of arrears on closing (both rent & service Charge)
  • Underfunding of the sinking fund
  • Outlining the existing landlord voids – specifically relating to service charge
  • Summarizing concessions given to tenants but not properly documented – This has been common throughout the recent Covid period
  • Outlining agreements with tenants that do not have an executed deed of renunciation
  • Maintenance issues which need to be addressed as a priority

If you are considering an investment in a commercial property, please do not hesitate to reach out to a member of the Bannon Property Management team.

 

Author:                 Eugene Burns, Associate Director, Bannon

Date:                     27th April 2022

 

Completely Retail Marketplace Event

/in , ,

An early start this morning for our Bannon retail team for the Completely Retail Marketplace event in London. It has been great to meet people in person to discuss our Landlord and Tenant requirements.

Niche Area of Supermarket/Convenience Going Concern Valuation

/in , ,

Property valuations tend to be of the ‘bricks and mortar’ variety, i.e. producing a valuation of the physical building either with vacant possession or based on an investment income stream.  In addition to these traditional valuations, the Bannon team regularly undertake specialised valuations of a trading going concern.  This involves valuing not only the building but also accounting for the value attributable to the business carried on therein.  It is a niche aspect of valuation, whereby we, the valuer are required to understand both the property and the business to arrive at a value based upon the marriage of both elements.

Where traditional property valuations are often based upon comparison transactions including lettings and sales which set benchmarks against which a valuation is assessed, the valuation of a going concern is much more nuanced.  One of the main impediments to such valuations is that going concerns are rarely openly traded in the commercial markets and therefore tangible comparison evidence is often scarce or completely lacking.

Even were there to be a bountiful supply of comparison transactions, the intricacies of the valuation of a going concern involves a much deeper understanding of the general industry in which the business operates, as well the mechanics of the subject business.

Bannon has carried out many valuations of convenience store and supermarket going concerns for many years.  Based on long-established relationships with retail clients, we have a deep understanding of how these businesses function and the key criteria that impact their trading performance.  This understanding provides Bannon with the insight to analyse the trading profit and loss accounts of the business.  We understand the profitability of the operation based on establishing a sustainable EBITDAR (Net Earnings) position and the route and cost required to achieve that position.

In forming a view on a stabilised Net Earnings position, we review a number of items including but not limited to the following:

  • Turnover history to interpret the strength of the business.
  • Operating costs of the business making an assessment as to savings that could be accrued, or conversely where costs should be increased.
  • Costs that directly relate to the daily operation of the business.
  • Costs that are not intrinsic to the day-to-day operation of the business.   
  • Any capital expenditure that has been invested or is proposed and the likely impact that this will have on the strength of turnover or costs savings.
  • Assess competition – existing and proposed.

After concluding a stabilised Earnings position we then conclude a capitalised value, only after taking account of required capital expenditure and acquisition costs.

A further point that is becoming increasingly important in assessing a business are the ‘Green’ credentials of the building and the operation.  Those businesses that have embraced ESG and invested accordingly should see benefits in more efficient operations resulting in cost savings.   Businesses that have been slow to move with the times will experience higher costs that will impact the bottom line and reduce operating margins.

The valuation of supermarket going concerns is a highly niche aspect of commercial valuation practice.   As market leaders in the retail sector, Bannon is uniquely placed to carry-out such valuations.  Contact Ben Semple, Divisional Director and Registered Valuer from the Bannon Valuation Team for more information.

Email:  bsemple@bannon.ie

Dated:  13th April 2022

 

 

Pret A Manger to expand into Ireland creating 500 jobs

/in , ,

Around 500 jobs are to be created across the island of Ireland by coffee and sandwich chain Pret A Manger.

The company is to open up to 20 shops within the next decade, as part of its entrance into the Irish market.

The outlets in the Republic and Northern Ireland will be rolled out by Carebrook Partnership Limited under a franchise arrangement.

The first shop is set to open on Dawson Street in Dublin this summer, creating 25 jobs.

“Setting up shop in the Republic of Ireland and Northern Ireland has been our plan for a long time, and we’re thrilled that we’re finally able to make it happen,” said Pano Christou, Chief Executive Officer at Pret A Manger.

“There has long been demand from our neighbours on the island of Ireland to bring Pret’s freshly prepared food and organic coffee, and now with the backing of Carebrook Partnership Ltd we’re able to do so.”

“We look forward to making this partnership a success.”

Carebrook Partnership Ltd has worked with Pret for three decades and runs many of its stores in London where it is a common sight on city centre streets.

Carebrook is majority owned by UK and US food sector veteran, Gerard Loughran, who grew up in Nenagh, Co Tipperary.

Ray McNamara from Dublin, who has 25 years’ experience in the Irish food industry and owns Ann’s Bakery is also a minority shareholder.

“We’ve been working with Pret for over three decades, ever since they arrived in London,” said Gerard Loughran, CEO, Carebrook Partnership Ltd.

“Having grown up in Tipperary, and with more than two decades of experience in the hospitality and food industry, I’ve always wanted to bring Pret to Ireland and Northern Ireland, so I’m delighted that this will soon become a reality alongside my co-owner Ray, who has great connections and links to the food sector in Dublin with 25 years’ experience.”

“We look forward to welcoming our new customers, soon.”

Last year Pret announced that it would aim to double the size of the business within five years, including launching into five new markets by the end of 2023.

Pret is owned by investment group JAB and founder Sinclair Beecham.

It currently has shops in the United Kingdom, United States, Hong Kong, France, Dubai, Switzerland, Brussels, Singapore and Germany.

Article by RTE

Retail Parks Prove to be Resilient During Covid

/in , , ,

Looking back over the past decade the retail property market has experienced a tumultuous time.  Recession following a boom, followed by a resurgence, then the impact of Brexit, Covid, the move to more on-line shopping, and more recently the war in Ukraine.  Retailers and the retail property market have been the hardest hit during this period, and it may be some time before the market stabilises. However, one sector within the retail property market has outperformed in the last 3 years.

Retail Parks have come through the past two years’ experience in an even a better position that before.  The sector has been the beneficiary of multiple factors.

The closure of other retail outlets funnelled consumer spend into retail warehousing parks as the only outlet for frustrated shoppers. This was helped by the nature of retail warehouse parks versus enclosed shopping centres. As large boxes with plenty of space for social distancing, they offer surface outdoor parking and ease of access for click and collect purchases.

What also helped was the focus on the products that are typically sold in retail parks. There was a perfect storm of an increase in home improvements and outdoor activities being a major focus for Covid bound customers acquiring items such as:

  • DIY
  • furniture and soft furnishings
  • the need for new electronics to assist with remote working and learning
  • an increase in pet ownership
  • toys for housebound kids
  • a boom in healthy pursuits driving sales in sports/leisure stores.

This all led customers to their local retail park.

The Bannon Retail Team has seen this resurgence across our extensive portfolio of Retail Parks that we lease and manage. Car numbers in retail parks are up considerably when compared to 2019 numbers, which is a different story when compared to the reduction in footfall that is being experienced in enclosed shopping centre and city centre environments. 

Vacancy rates in retail parks were already low in Q1, 2020.  The acceleration of transactions during and after the third Covid lockdown has pushed vacancy rates to a very low percentage.  Schemes such as Limerick One Shopping Park and The Retail Park Liffey Valley currently have vacancy rates at a long-term low.

New to market retailers and those slow to expand pre-Covid are now seeking increased representation in the better parks in Dublin and provincial locations.  This supply and demand dynamic may encourage owners of retail warehouse parks to start considering expanding their schemes to cater for this renewed demand.

Retailers keen for further expansion include Dutch furniture retailer JYSK, global sports brand Decathlon, Next Home, Homesense, Home Store + More, Party City and EZ Living Furniture/Interiors to name a few.  This sector of the retail market will be keeping us busy for the foreseeable future.  

Author:                 James Quinlan, Director, Bannon

Date:                     6th April 2022

Adamstown community retail portfolio guiding at €1.9m

/in , , ,

Agent Bannon is guiding a price of €1.9 million for a community retail investment opportunity comprising four retail units and a standalone creche at Adamstown in west Dublin.

The units, which are below a modern residential development called the Sentinel Building, are occupied by Londis (with a guarantee from parent company BWG), Mizzoni’s Pizza and Pamper Yourself, together with one small vacant unit. The creche is operated by Giraffe Childcare. All of the units are presented in excellent condition throughout and benefit from prominent road frontage.

The annual passing rent is currently €163,375 with substantial reversionary potential. The asking price offers the prospective purchaser an attractive initial yield of 7.84 per cent, rising to a potential double-digit yield on the letting of the vacant unit and the settlement of the outstanding Londis and creche rent reviews. The properties extend to a total floor area of 15,264sq ft and have a weighted average unexpired lease term (Wault) to break of 6.43 years and a Wault to lease expiry of 8.72 years.

The subject units are in the southeast of Adamstown and 750m from Adamstown train station. The surrounding area is predominantly in residential use with a mix of high- and low-density housing. Current population estimates suggest a resident population of about 5,000 and once fully complete this is projected to be 25,000 people.

Ros Tierney of Bannon expects to see “significant interest from investors seeking a high-profile grocery and necessity portfolio with value-add potential through asset management”.

Article by The Irish Times.

Retail Sales

/in , , ,

The CSO (Central Statistics Office Ireland) reported retail sales values for all business increased 4.3% on pre-pandemic levels. Taking a deeper dive this figure includes bars which remain 28.45% below 2019 data. When bars and motor trade are excluded, retail sales values have jumped 11.6% when compared to 2019 and 2020.

This positive performance is despite the level of overseas travelers to Ireland remaining 35% below 2019 and 2020 figures. The full return of tourists to Ireland will spell further good news for the retail sector.

Retail Boom Continues

/in , ,

Despite the negative narrative in the press recently the Retail Sales figures released by the CSO paint a very positive picture of the sector. Overall the value of retail sales (excluding cars & bars) were up 11.6% on February 2019. The only red figures on the index are bars, department stores and books, all other 19 indicators are positive versus February ’19 & ’20. The real stand out number is Clothing & Footwear which was almost 1/3 higher than in February 2019.

These figures do not reflect the downturn in Consumer Sentiment that has been recorded since the war in Ukraine hit the headlines and in the past the Irish Consumer has proven very sensitive to macro economic events as evidenced in the Summer of 2016 after the Brexit vote. It will be interesting to see how the CSO data is portrayed in the press.

Bannon Retail Pulse Report – March 2022

/in , ,

We have pleasure in enclosing The Bannon Retail Pulse Report for March 2022. March witnessed further improvement in footfall trends, reflecting the lifting of restrictions earlier in the year. This will improve further as we can now look forward to an increase in tourist numbers in the months ahead. Transactional activity was extremely busy in Q1 and will continue into Q2.

For retail enquiries and intelligence, please contact any of the team.

To view the full report, please click here.

High-end UK retailer Flannels to open at Blanchardstown Centre

/in , , ,

Premium fashion group Flannels has signed a deal for its second Dublin store.

Having committed earlier this year to occupy half the retail space at the Clerys Quarter on O’Connell Street, the luxury retailer is to open for business at the Blanchardstown Centre.

Flannels, which is part of Mike Ashley’s Frasers Group, will occupy the ground floor of the former Debenhams unit. At 45,000sq ft, the space will be the larger of the two outlets committed to by the retailer in the Irish market to date. Flannels’ premises at the redeveloped Clerys store will extend to 30,000sq ft.

Commenting on the opening of the latest store, a spokesperson for Frasers Group said: “We’re excited to open Flannels in Blanchardstown and bring a world-class shopping experience to a new destination. Our ambitious expansion plans mark a pivotal moment for the business, and we’re pleased to be opening in Blanchardstown as part of our next cohort of store openings in Ireland.”

‘Ongoing strategy’

Pat Nash, managing director at the west Dublin retail scheme’s asset manager Falcon AM, added: “Flannels’ commitment to a new lease in Blanchardstown Centre is a huge endorsement of the scheme and follows the completion of a major €17 million mall refurbishment. This is in line with our ongoing strategy to strengthen and reposition the asset . We are excited to be welcoming new retailers to the centre and indeed the Irish market during these unpredictable times.”

Falcon AM made the decision to split the Debenhams’ unit, which comprises more than 100,000sq ft in its entirety, to meet with current retailer demand according to the firm’s leasing director, Sharon Walsh. Ms Walsh said that a further announcement will be made in relation to the upper level of Debenhams’ former premises in the coming weeks.

BNP Paribas Real Estate and Bannon are the joint leasing agents for the Blanchardstown Centre.

Article by The Irish Times

Happy International Women’s Day

/in , , ,

Happy International Women’s Day.

To mark the day and The Square’s Club Together initiative, please watch the video below that celebrates amazing “Strong Women” in the local community.

Tallaght is blessed to have so many influential role models in the community. Their amazing achievements inspire the younger generations and help create a thriving society where equality duly prevails.

We are very fortunate to work with some amazing women in Bannon and across our wider portfolio. Thank you for all your help and support.

The Strength of the Irish Consumer

/in , , ,

The strength of the Irish Consumer was further emphasised this week with the CSO reporting a 2.0% annual increase in weekly earnings to €864.51 for Q4 2021. When compared to pre-pandemic levels this increase jumps to 9.9%.

The CSO Labour Force Survey also reported a year-on-year increase in the Labour Force (8.9%) along with a decrease in unemployment to 5.3% which resulted in record employment of 2.5 million people.

The result of these two factors can only be positive for the Irish retail market.

Author:                 Cillian O’Reilly, Surveyor, Sustainability Manager, Bannon

Date:                     2nd March 2022

The Obsession with the Negative Narrative

/in , ,

It is fascinating how the Irish media can find the negative in any piece of data. Today’s Irish Times has a headline proclaiming that retail sales are down 1.5%, a downbeat message that seems at odd with the economy at large and our own data. The comparison is between retail sales in January and December. In reality there are very few years when retail sales in January reach 98.5% of those achieved in December given when Christmas falls!

Not worthy of inclusion in the article is that retail sales excl. cars in January were 7% higher than in in pre COVID January 2020! They are 17% higher than January last year but the comparison with COVID impact periods would be as misleading as the IT article. It shows the benefits for investors of real data and expert analysis and the negative narrative does create opportunities for the well informed astute investor. For more information contact Consultancy@bannon.ie

Author:                 Neil Bannon, Executive Chairman, Bannon

Date:                     2nd March 2022

Bannon Retail Pulse February 2022

/in , ,

Bannon are delighted to bring you our February Retail Pulse. As we look towards a complete removal of COVID restrictions on Monday next what does our latest report tell us about how the market is likely to perform over the coming months?

To view the full report, please click here.

 

 

 

Retail and the art of the “seanchaí”

/in , , ,

There is a word in the Irish language which describes a storyteller. It is “seanchaí”. The author, Frank Rose, has explored storytelling and its effect on human behaviour and decision making in his recently released book “The Sea We Swim In” published by Random House. One of the themes of his book is the role of storytelling in the marketing of products. Telling the story of a product’s journey rather than simply including it in a catalogue, results in increased sales.

This theory is based on the belief that consumers make a purchasing choice based on available product information. When invested in the product’s origin story and journey, they are persuaded to purchase in greater quantities and at a higher price point. Through our retail clients, we see increasing consumer queries regarding the provenance of the goods they are buying and the story of the journey the products have taken to arrive on our shelves.

In recent LinkedIn articles we have provided updates on the great number of retail occupiers who are refurbishing and redesigning the space that they occupy within our centres. In these refurbishments there has been a shift towards lifestyle designs. This allows the retail space to enable and promote the story of the products. Consumers can handle and explore in-store before a potential purchase or online order.

Post lockdown, we have worked with over 20 retailers who have invested in store refits across our portfolio of 50 shopping centres and retail parks. In our recent Retail Pulse Jan 22 / Q4 2021, sales in shopping centres for December 2021 was 6% above the same period in 2019. This shows that there is an increased amount of business available to support this investment in stores.

Consumer behaviour regarding the story, provenance and origin of retail products is also matched by investors’ Environmental Social and Governance (ESG) requirements regarding their property portfolio. In future updates we will highlight case studies on how our current retail stock is being refurbished and redesigned to include sustainability and environmental factors. This may in turn be an opportunity to evolve and harness the consumer movement towards a more immersive retail story telling retail journey.

For now, we at Bannon will continue to be the seanchaí for the Retail Sector in Ireland!

Author:                 Peter Nicklin, Property Management Surveyor, Bannon

Date:                     14th February 2022

 

LEGO to open first Irish store in Dublin this summer

/in , ,

LEGO is to open its first ever store in Ireland with the new store set to open in Dublin’s Grafton Street this summer.

The new Dublin LEGO store will feature the “Retailtainment” concept which blends physical and digital experiences that allow shoppers to immerse themselves in the LEGO brick, as well as create personalised products.

About 10 to 15 jobs will be created when the new store opens.

Simone Sweeney, Vice President of Global LEGO Retail Development, said the company had been looking for the perfect site in Dublin, so it was very excited when the opportunity came about to open on Grafton Street.

“The new LEGO Store will be amongst some of the biggest and best brands in Dublin, in a shopping district loved by many local families and visitors alike,” Ms Sweeney said.

She said that Dublin has been part of LEGO Retail’s expansion strategy for many years given the existing huge number of LEGO Fans in Ireland and the international customers typically found in the city.

“The new LEGO Store in Dublin will allow builders of all ages to be inspired by endless play possibilities and for new builders to welcome them into a new exciting journey of discovery into the LEGO universe,” she added.

The new LEGO store will be housed at number 41 Grafton Street – the former Topman store – in a building which is owned by Irish Life Investment Managers.

The deal was negotiated on behalf of Irish Life Investment Managers by Savills Ireland and Bannon.

The LEGO Group was founded in Denmark in 1932 by Ole Kirk Kristiansen and its name derived from the two Danish words LEg GOdt, which mean “Play Well”.

Today, the LEGO Group remains a family-owned company headquartered in Billund in Denmark and its products are now sold in more than 140 countries worldwide.

Article by RTE News 

The Latest Coup for Retail Property Experts Bannon

/in , , , ,

Ireland’s largest, domestically owned commercial property consultancy firm Bannon, has been appointed by Davy Real Estate to manage Stephens Green Shopping Centre. Located in the most prestigious and cultural area of Dublin city centre, the shopping centre comprises over 320,000 sq. ft. of lettable retail floor area.

Bannon manages over 50 retail shopping centres and retail parks across the country, covering six million sq. ft. of commercial real estate worth c. €2 billion. As market leaders, Bannon has advised and managed the country’s most notable retail spaces in the last thirty years such as Dundrum Town Centre, Blanchardstown S.C., Swords Pavilions. and The Square. Commenting on the appointment, Director of the Bannon Property Management team, Ray Geraghty said “We are extremely proud to be working with Davy Real Estate on Ireland’s most iconic retail destination and the first premium shopping centre built in the country. The appointment is further validation of the team’s unrivalled experience managing assets in the retail sector.”

Since the start of 2022, Bannon are responsible for the management of the shopping centre which includes over 100 retail outlets. As the retail sector emerges from the effects of COVID-19 lockdowns, Bannon’s management role will involve the smooth day-to-day running of the busy centre and ensuring rent and service charge collection is maximised for Davy Real Estate.

Ray Geraghty continued “Our experience is supported by a strong cross departmental approach in Bannon. The Property Management team work seamlessly with the Consultancy, Agency and Professional Services arms of the business. This results in a consistent line of communication to our clients. We are excited to get to know the occupiers of Stephens Green Shopping Centre, and working closer with them, centre management and the investors to make the centre stronger, more profitable and more sustainable.”

Bannon Retail Pulse January 2022

/in , ,

We are delighted to launch our new look Retail Pulse.

2021 had a challenging start for the majority of occupiers and investors as uncertainty on the back of Covid continued to take a hold on the sector. As the year progressed however retail sales improved across most of the sub-sectors which contributed to occupancy rates remaining high. We remain very confident for 2022.

Keep an eye out for our monthly bullets as we track movement and give our insight into the retail sector.

To view the full report, please click here. 

Retail Sales Data Report

/in , , ,

Despite month on month reductions, recently released CSO Retail Sales Index figures for December 2021 report a 3.6% increase in sales values and 2.2% reduction in sales volumes when compared to 12 months prior however these figures do not paint the full picture. When motor trades and bars are excluded, these figures rise to increases of 5.4% and 0.4% respectively. The true strength of the retail sector shows through when the data is compared to pre-pandemic levels which shows a 10.2% increase in sales values and 11.4% increase in sales values compared to December 2019.

Taking a deeper dive into the data it is evident the traditional festive rush was more subdued in December 2021 with a stronger November trade showing evidence of consumers forward planning.

Top performing sectors for December 2021 were bars following their recent reopening (value increase 39.8%, volume increase 36.5%) and pharmaceutical, medical and cosmetic articles (value increase 11.1%, volume increase 9.9%).

Shop Local this Christmas

/in , ,

Since the retail sector emerged from lockdown in May 2021 we have worked with 20 retailers who have invested in store refits cross our portfolio of 31 shopping centres and 19 retail parks. Shop local this Christmas!

 

Shop Local this Christmas

/in , , ,

 

Despite the uncertainty of COVID, it is great to see such optimism across our property management portfolio with over 40 new openings since we emerged from lockdown in May 2021. Shop Local this Christmas!

Dublin City Council session with Neil Bannon

/in , , ,

Our chairman and head of Consultancy Neil Bannon was invited to present to Dublin City Council this morning on how to tackle retail vacancy in Dublin City Centre, really positive session with great sharing of ideas & initiatives.

Society of Chartered Surveyors - SCSI Ireland

Address

Hambleden House
19-26 Pembroke Street Lower
Dublin 2
D02 WV96
Ireland
»Map

Contact Us

Phone: +353 (1) 6477900
Fax: +353 (1) 6477901
Email: info@bannon.ie

Compare Listings

Title Price Status Type Area Purpose Bedrooms Bathrooms