City-centre shops still in vogue despite drive to `Mallsville'

Going into town to shop is experiencing a revival in Dublin and city centre stores are reaping the benefits. Pedestrianised streets, open air cafes and street entertainers are drawing people back to the long-established tradition of "going downtown", and strong sales in the first half of the year look like exceeding the exceptionally strong trading in 1998.

There is no evidence in crowded Grafton and Henry streets that massive shopping malls on the outskirts of the city are affecting profits. Shop-owners say that the principal factor driving the continued popularity of city centre shopping lies in the Irish psyche. Suburban centres like Liffey Valley are relying on UK shopping patterns and have failed to attract the public in large enough numbers to justify the high rents.

"They're all Mallsville," one young shopper says of out-of-town centres, adding that the variety of Irish-owned stores in the city centre is a major incentive to drive into town. With the wider range of designer boutiques in city centre shops, she can "see what's fashionable" and feel she will get more personal attention.

Danish-born Pia Bang, whose fashion shop in Grafton Street has been trading for 11 years, says it's a sign of the times that people are coming back to the city centre to shop. Going to town, she says, is more of an experience - meeting up with friends, having lunch and enjoying the atmosphere of the city. "Going to one of those massive shopping centres is a daunting job and they are so boring in their sameness," she says.

Like many of the smaller shops on Grafton Street, a large part of Pia Bang's business is selling to tourists. British visitors, in particular, are becoming important players in city centre shopping, because with the currency differential, prices here are almost 20 per cent lower than in the UK.

According to Stephen Murray of Jones Lang Wootton, the across-the-board mix of local, national and international shoppers is a major factor in the draw of city centre locations. The atmosphere in Dublin is so attractive that out-of-town schemes are less likely to attract a determined town shopper, says Mr Murray. Rents in the city centre are high because of the scarcity of available space, and demand has never been so strong. Leaseholds currently change hands in Grafton Street for up to four times the rental value of the property; a good shop renting at £100,000 per year could possibly have a price tag of £500,000 for the leasehold interest in today's buoyant market.

Premiums are generally lower in Henry Street, at around two times the rental value. However, the sale of Lawrence's Jewellers, currently being marketed through Druker Fanning and Partners, could set a new benchmark for this area.

There has been strong interest in this 2,500 sq ft premises from both multiples and indigenous companies, says Neill Love of Druker Fanning. He is guiding an annual rent of £150,000 per year, which at £200 per sq ft, is a considerable rise from the traditional rent of around £180 for a Henry Street shop.

"Across the board, city centre shops are doing extremely well," says Larry Brennan of Hamilton Osborne King's retail division. "Dublin's a great shopping environment. You stay there longer - and the longer you stay, the more you spend." According to Mr Brennan, side streets off Grafton and Henry Streets, such as Wicklow Street, South Anne Street, Parnell Street and Liffey Street are enjoying a spin-off from the revival of city centre shopping. Out of town centres, he says, are spending a lot of money on creating a shopping experience that already exists in its natural state in the city.

Retailer Robert Barron recently opened a branch of his Pamela Scott stores in the new Liffey Valley Centre. The Grafton Street store has suffered no ill-effects from this, and sales are up 20 per cent on this time last year. The group has plans to expand further, with four new shops opening over the next 18 months. He still sees the city centre shop as the company flagship. "Fashion took a nose-dive a few years ago, but is back in vogue now - that's one reason for the city centre popularity. We see Brown Thomas as our main competitor, not the UK multiples."