Limerick’s retail vacancy levels below national average
12 February 2013: Retail vacancy fell by over 15% in the year to January 2013 within Limerick’s ‘core’ retail area. This is one of the key findings contained within a report compiled by Limerick Chamber called The Changing Face of Retail. The report analyses the retail sector and the realities it faces in 2013 particularly in Limerick City – a city that appears to be bucking the trend with more retail units occupied in the core retail area in January 2013 than in January 2012.
The author of the report Dr Órlaith Borthwick, Economist with Limerick Chamber, examines the impact that the economic climate, online shopping, upward-only rental agreements and the local environment has had on the traditional high street city model and makes a number of recommendations on how some of the challenges facing the sector could be addressed.
The biggest impact on the retail sector has inevitably been the economic downturn. The report acknowledges that domestic demand for retail products will continue to decline until consumer confidence returns and there is more disposable income in circulation. The report calls for a continued focus on curbing government spending and ensuring the delivery of Croke Park II. In addition, revenue raising measures which increase the cost of doing business cannot be sustained.
The report highlights the need for retailers to increase their online activity and focus on how an online presence can complement their high street stores. And with the worrying trend within the Irish online market, where €3 of every €4 spent is spent on overseas goods and services, it also suggests the government should introduce a stimulus package to encourage up-skilling and greater online participation.
The increase in the number of retail chains applying for examinership citing unsustainable rental rates as their biggest challenge was noted. The report says that if the government is serious about protecting jobs, it needs to urgently address the impact the demands of upward only rental contracts are having on retailers.
Locally, the report acknowledges the positive impact that initiatives announced by Limerick’s Local Authority are having on reigniting growth in the city centre but calls on plans to upgrade and redesign O’Connell Street to be fast-tracked given that public realm upgrades and modelling, such as those on William Street and Sarsfield Street, have had a positive impact on retail activity
Dr Borthwick commented, “The number of available units and the level of retail openings and closures is a real indicator of a city’s performance. Investment in major public realm upgrades is paying off. Just look at William Street – there is currently only one unit available to let on William Street.”
Despite the many challenges currently facing the retail sector, the report concludes that Limerick’s retail performance appears to be performing better than the national average with lower vacancy levels (9% versus national average of 11%) and increases in retail activity.
“Limerick is a very cost competitive location for businesses. The city is experiencing some notable positive changes. The business community is playing a role facilitating economic growth in the region and driving a shift in perceptions. With further upgrades and investments envisaged by our new local authority and the renewed focus on reinvigorating the city centre, Limerick Chamber predicts that 2013 will see continued growth in our city centre,” concluded Dr Borthwick.
Click here to read a copy of the report The Changing Face of Retail.
ENDS
For further information please contact Edwina Gore, Communications Consultant, Limerick Chamber, Tel: 061-217607, Email: pr@limerickchamber.ie
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