Harvey Nichols in Dundrum posts €1.4m loss

THE DUNDRUM branch of British fashion retailer Harvey Nichols made a loss of just under €1.4 million in the year to the end of March 2009, according to accounts just filed for its parent company.

This brought its total losses here since its high-profile opening in September 2005 to €6.14 million, according to accounts lodged for Broad Gain (UK) Ltd.

Its losses at the end of March 2008 had been €4.78 million. The Dublin branch’s liabilities are “irrevocably guaranteed” by Broad Gain.

Kenny Robertson, director of Harvey Nichols’s Dundrum branch, said sales “so far this year” are down by 9 per cent. “I’m actually buoyed by that because it’s not what I hear from other retailers,” he said. “It’s still very challenging.”

On Tuesday, the Central Statistics Office estimated that the value of Irish retail sales declined by 11.2 per cent in 2009, when the motor trade is excluded.

Mr Robertson said Harvey Nichols responded to the recession by reducing its stock levels and by introducing different ranges in store.

“We have brought in a more affordable range rather than just sitting there,” he explained. No staff have been made redundant and no pay cuts have been introduced. Mr Robertson said the Dundrum store would post a loss for the year to the end of March 2010 but the figure would be less than last year’s deficit. Harvey Nichols had always expected it to take three to five years for the Dundrum store to reach profitability. “That was in the normal times.”

Mr Robertson said the three-storey Dundrum outlet’s hospitality business – which comprises a restaurant, brasserie and cocktail bar – was “doing well”.

Harvey Nichols, along with other retailers in Dundrum, faces a rent review at the Town Centre, with reports suggesting that increases of up to 50 per cent will be sought.

The retailer is reported to be paying rent of €1.5 million for the Dundrum store, which faces on to the civic square at the centre. “I’m sure we will all reach an amicable agreement,” Mr Robertson said. “I’m sure it won’t end up being 50 per cent. I hope not anyway.”

Dundrum Town Centre is owned by developer Joe O’Reilly’s Crossridge Investments. Property company Glenrye manages the property.

In spite of the difficult trading here, Mr Robertson said Harvey Nichols is committed to its 35,000sq ft Dundrum store. “I want us to have a store that’s bigger than we have now. I’m always looking for extra space . . . I wouldn’t rule it out. The good times will come back again. We are here for the long term.”

Harvey Nichols’s group accounts show it made a profit last year of £5.7 million, down from £10.9 million in the previous period. Sales fell by 2.4 per cent to £172.8 million.

Founded in 1820, privately-owned Harvey Nichols has 12 stores in the UK, Ireland and Asia.