The most recent data from the Central Statistics Office showed that the volume of retail sales in Ireland declined by 14 per cent in 2009 while the value of retail sales declined by 18 per cent in the period.

Against this backdrop, CBRE has more bad news to report. In recent weeks, Brown Thomas has announced reduced profits, Debenhams has announced more than 170 job losses in the Irish market, employees in Clery’s department store in Dublin city centre have gone on a four day week and Arnott’s is to close its Jervis Centre ‘Arnott’s Project’. A number of retailers are continuing to go out of business including in recent weeks 3G, Adams, Jeanscene, Ladybird, D2 Jeans and West Jewellers. Bestseller Group is to close 14 outlets while Hughes & Hughes has gone into receivership.

However CBRE says a number of retailers including Tom Taylor and Decathlon are continuing to look for opportunities in the Irish market. Aldi and Lidl remain aggressive on the expansion trail; Four Star Pizza has announced plans to open six new franchise stores in 2010 and mobile network operator 3 Ireland plans to open new stores.

According to CBRE’s head of retail in Ireland, Cormac Kennedy: “Many retailers are being proactive in the current climate and looking at restructuring their lease commitments. In many cases, tenants are negotiating rental reductions.

“It is difficult to determine rental values although we believe that prime headline quoting rents are down approximately 30 per cent from peak,” concludes Kennedy.

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