As developers push ahead with new shopping centres, two other retailing phenomena are starting to make their presence felt in the Republic - factory outlets and retail parks. Factory outlets involve manufacturers selling end-of-season goods at huge discounts to consumers.
While the Irish consumer may not take immediately to the concept, they have proved exceptionally popular in the UK and the US, where there are more than 500 such operations. The first factory outlet in the country is due to open next year, when Green Property unveils its £10 million Killarney Outlet Centre, Co Kerry, where manufacturers will sell end-of-season designed and branded goods.
Green is expecting to produce rental income of £2 million annually and will also charge commission on the turnover of the 45 to 50 businesses expected to locate in the 90,000 sq ft centre.
The company is not disclosing at this stage how many tenants have signed up. The centre was due to open in March, but late April is now more likely.
Attempts by the US-retail group, Costco, to build a £12 million warehouse outlet near Clondalkin which would be open to traders and members of the public, were frustrated in October when An Bord Pleanala refused planning permission. The 126,000 sq ft facility, if it had gone ahead, would have been open to people with a high credit rating.
Another factory outlet which is hoping for better planning news is the complex planned for north of Dundalk, which seeks to target shoppers from both sides of the Border.
A planning application for the £40 million sterling regional centre has been lodged with Louth County Council by the UK-based company, Sears Property Developments, working with a joint venture partner from the North.
The centre, if it gets planning, will have 200,000 sq ft of retail space to accommodate 90 shops, which will sell end-of-line designer goods at discounted prices.
The centre is planned for a strategically located 28-acre site adjacent to the N1 and two miles north of Dundalk beside the Ballymascanlon roundabout. The promoters say it will be ideally located to pull shoppers from a large catchment area along the highly populated east coast, including Belfast and Dublin.
Another factory outlet is proposed for Rathdowney, Co Laois, by a company called Irish Outlets. If it goes ahead, this £10 million centre would sell discounted fashionwear.
The location has been selected because of its proximity to national rail routes. The operators would be the British companies, Langtree Properties and Waxy, property management specialists, who are both involved in the Galleria Outlet in north London.
The scheme involves developing the 100,000 sq ft former industrial site occupied by Harp Textiles. Some 34 units are planned for the centre with clothing, footwear, bed linens, household goods and toys being discounted at between 30 and 70 per cent.
Meanwhile, the spread of retail parks shows no sign of halting and the Minister for the Environment's directive on supermarkets, ironically, may free up additional space for their growth. The now well-established battle between Blanchardstown and Liffey Valley is to take place in this sector too from the end of next year.
SOME 12 leading retailers are expected to take up space in the 170,000 sq ft of retail warehousing which will form part of Liffey Valley's retail park.
The Telecom Eireann Superannuation Pension Fund is to pre-fund most of the scheme The rent roll is expected to be between £2.75 and £3 million, equating to a yield of over 6 per cent per annum. Terms for most of the 12 units are understood to have been agreed. Although not yet announced, the tenants are likely to include PC World, Currys, Smyths Toys, Textile World and Atlantic Homecare.
Construction work is due to begin by the end of the year and the first units will be ready for fit-out by next autumn. Hamilton Osborne King is already involved in negotiations to lease the second phase of the retail park, which will have over 100,000 sq ft. Meanwhile, the second phase of the Blanchardstown retail park is approaching completion and the 14 retailers are expected to be in place early in the new year. Among those being mentioned are Atlantic Homecare, Clerys and Tully Tiles. The second phase will add a total of 190,000 sq ft of space to the Blanchardstown complex.
