Kildare Village has been told not to sell new-season clothes at reduced prices. But are discount outlet centres necessarily a threat to high-street retailers?
WHEN YOU CONSIDER that Kildare Village operates in an industry where being on trend is de rigueur, it’s ironic that the outlet centre has been prohibited from being fashion-forward. In a recent decision, An Bord Pleanála determined that the sale of hot-off-the-catwalk clothes is in breach of the centre’s planning permission.
When The Irish Times dropped in to the bargain-hunters’ Mecca earlier this week for a spot of investigative window-shopping, in-season styles were conspicuous by their absence. Not a hint of colour-blocking or a stitch of tangerine in sight. The Karen Millen store had none of the new-season dresses on sale at the brand’s outlet in nearby Whitewater Shopping Centre, in Newbridge. Though its rails contained a number of items currently available through the retailer’s website, the discount was the same in most cases, with several dresses cut from €199 to €95.
Reiss had a selection of coats that we spotted in its Grafton Street store last winter, while the shorts, skirts and tops on offer at Jack Wills, the UK’s answer to Abercrombie and Fitch, were leftovers from last summer and autumn. Pretty much the only bikini in Jack Wills was a pink-and-navy number that this writer bought last summer, which is now discounted by a third. All of the sales assistants we spoke to were quick to stress that their stock is at least a season behind.
So why did local retailer David Jones complain to the planning authorities about the sale of new-season stock by the outlet’s tenants? Was it much ado about nothing or a symptom of a deeper disagreement between small town-centre retailers and multinational out-of-town discount outlets?
In June last year Jones, who operates the Tommy Hilfiger and Best Menswear stores in Whitewater, raised the issue with Kildare County Council. The council requested more information to back up Jones’s claim that Kildare Village was competing with high-street outlets by selling new-season stock and that, in doing so, it was in breach of its planning permission. He submitted a list of items that he said were on sale in Karen Millen outlets (a brand selected “purely as an example”, he claimed) in both Kildare Village and Whitewater on October 4th, 2010. The items, which he described as “mid-season”, included a black jersey dress, lace black “boot shoes” and a black dress with studded sleeves.
Furthermore, claims an industry expert, one retailer in Kildare Village had gone as far as having the same window display as its high-street counterparts. (Different outlets for the same brands are sometimes owned by different franchises, so they can be competitors.)
“It’s fundamentally contrary to proper planning ,” the industry expert says. “It’s not sustainable for any town to have to compete with that.”
There is also an anecdote that because Clarks, the shoe shop, does not offer a measuring service in its Kildare Village outlet, parents were getting their children’s feet measured at Clarks in Whitewater, then driving 10 minutes up the road to buy similar shoes at Kildare Village. Also, the Pepe store in Whitewater has closed down while the outlet in Kildare Village is still trading, although no doubt many factors contributed to this closure.
Value Retail, which operates Kildare Village and nine outlet shopping villages in Europe, is said to have written to a number of its Kildare Village tenants last year, telling them they could not sell current-season stock.
A spokeswoman for Kildare Village, which has about 60 shops, told us that it “would take seriously any suggestion that there have been any breaches by brands of their contracts, and would take appropriate action”. Unlike factory outlets in the US, where retailers sometimes sell cheaper lines manufactured for those shops, the business model of Value Retail is based on enabling brands to sell end-of-season or surplus stock at discounts of at least 33 per cent. Kildare Village says its contracts oblige the brands operating there to sell only out-of-season merchandise, and that it checks stock regularly.
In any event, Kildare County Council decided that the sale of new products and in-season merchandise was allowed under the terms of Kildare Village’s planning permission. The council “felt then there was no issue” and was “satisfied everything was in order”, according to a spokeswoman.
In December Jones appealed this decision to An Bord Pleanála. An inspector’s report provided by the board reveals arguments, counterarguments and general hair-splitting by agents representing both Jones and the owners of Kildare Village. Ultimately, the planning authority found that the sale of new products or in-season merchandise in competition with products being sold on the high street at the same time would constitute a “material change of use” and would represent a breach of planning permission.
Despite repeated attempts to discuss the case with him and to hear his views on Kildare Village and discount outlets, Jones refused to comment for this article. Kildare County Council, which has responsibility for enforcing planning rules, told us it is considering An Bord Pleanála’s decision. A spokeswoman for the council says its planners are “not experts in fashion” and may need external assistance.
In any case, there may not now be a need for enforcement, given that the brands operating in Kildare Village seem to be toeing the line. But what about the broader question of the impact of discount outlet centres on nearby towns? Has Kildare Village helped the local economy or is it taking business from the area’s retailers? According to Breda McHale, of Newbridge Chamber of Commerce, Kildare Village has had a positive effect for local retailers.
“A rising tide raises all boats,” she says, adding that there is a good “crossover” of shoppers between the outlet centre and Newbridge. Shoppers often take in the two destinations in one day, McHale says.
A retail expert says Kildare Village is a “great asset” for the area, just as long as it’s not competing directly with town-centre stores.
Irish Times
www.buckplanning.ie
Showing posts with label newbridge planning. Show all posts
Showing posts with label newbridge planning. Show all posts
Tuesday, 28 June 2011
Outlet centre may only sell out-of-season clothes
THE KILDARE Village outlet centre has been told that selling up-to-the minute fashions is in breach of its planning permission, planning sources have confirmed.
The determination from An Bord Pleanála was sought by rival retailer David Jones, who operates a number of shops at the Whitewater Shopping Centre in Newbridge, Co Kildare.
The board’s decision, taken at a meeting at the end of May, effectively ruled that Kildare Village centre had only planning permission to sell out-of-season clothes at discount rates and that sales of new products and in-season merchandise in the centre “would constitute a change of use”.
The board said the original permission for the outlet centre had been contingent on it not introducing new products which would be in competition with high street locations.
This was in the interest of protecting existing retail cores in towns and villages, in compliance with traffic management and retail planning guidelines.
Kildare Village is home to some of the best-known fashion brands and regularly offers discounts in the order of 60 per cent. Brands include Polo Ralph Lauren, Furla and DKNY, while internationally renowned Irish fashion designer Louise Kennedy has also opened a unit there.
The village is one of a collection of nine such operations across Europe, operated by Value Retail. Founded in 1992, Value Retail has about 900 outlet boutiques featuring leading fashion and lifestyle brands, located close to some of Europe’s capital cities and intended to be destinations in their own right.
The Whitewater Shopping Centre is Ireland’s largest regional shopping centre and is in the centre of Newbridge.
It incorporates more than 70 top stores including Debenhams, Marks Spencer, Zara and HM, as well as well-known high street brands such as Karen Millen, Coast, Tommy Hilfiger and Pepe.
According to planning sources, the determination from the board is not the first time out-of-town shopping centres have been corrected for breaching conditions on the type of goods offered.
However, the sources said enforcement could be problematic, requiring as it would a specialised knowledge of fashion and retail.
Irish Times
www.buckplanning.ie
The determination from An Bord Pleanála was sought by rival retailer David Jones, who operates a number of shops at the Whitewater Shopping Centre in Newbridge, Co Kildare.
The board’s decision, taken at a meeting at the end of May, effectively ruled that Kildare Village centre had only planning permission to sell out-of-season clothes at discount rates and that sales of new products and in-season merchandise in the centre “would constitute a change of use”.
The board said the original permission for the outlet centre had been contingent on it not introducing new products which would be in competition with high street locations.
This was in the interest of protecting existing retail cores in towns and villages, in compliance with traffic management and retail planning guidelines.
Kildare Village is home to some of the best-known fashion brands and regularly offers discounts in the order of 60 per cent. Brands include Polo Ralph Lauren, Furla and DKNY, while internationally renowned Irish fashion designer Louise Kennedy has also opened a unit there.
The village is one of a collection of nine such operations across Europe, operated by Value Retail. Founded in 1992, Value Retail has about 900 outlet boutiques featuring leading fashion and lifestyle brands, located close to some of Europe’s capital cities and intended to be destinations in their own right.
The Whitewater Shopping Centre is Ireland’s largest regional shopping centre and is in the centre of Newbridge.
It incorporates more than 70 top stores including Debenhams, Marks Spencer, Zara and HM, as well as well-known high street brands such as Karen Millen, Coast, Tommy Hilfiger and Pepe.
According to planning sources, the determination from the board is not the first time out-of-town shopping centres have been corrected for breaching conditions on the type of goods offered.
However, the sources said enforcement could be problematic, requiring as it would a specialised knowledge of fashion and retail.
Irish Times
www.buckplanning.ie
Wednesday, 21 July 2010
TK Maxx to open in Newbridge
THE CUT price fashion and homeware retailer TK Maxx is to open a major store in Newbridge only weeks after dropping plans for a similar outlet at the Ilac Centre in Dublin city centre.
An unusual feature of the New-bridge letting is that the American trader will be paying the landlord 5 per cent of its turnover rather than a standard rent.
The deal underlines the radical changes being sought by an increasing number of high profile multiples since the downturn in consumer spending took hold at the start of 2009. Though many provincial landlords are happy to settle for a percentage of turnover where big name traders are concerned, the owners of premises in prime Dublin locations still prefer a straightforward rental agreement or, at the very least, a significant base rent as well as a percentage of the turnover.
TK Maxx recently offered the owners of the Jervis Centre in Dublin a base rent of €1.2 million as well as 7 per cent of the turnover. But with several traders chasing the same premises, the owner Paddy McKillen opted for US fashion giant Forever 21 at a rent of €2.75 million per year.
Meanwhile, negotiations between TK Maxx and Dunnes Stores on taking over the Irish company’s former department store in the Ilac centre have apparently ended without agreement. Dunnes is trading out of part of the space as well as from a store fronting on to Henry Street.
TK Maxx has just taken a 20-year lease of the stand-alone store of 2,322sq m (25,000sq ft) close to the Whitewater shopping centre in Newbridge. There will a break option in year ten.
Projections from the company suggest that its turnover should range between €6 million and €8 million per annum. If either of those figures are reached, then the rent going to landlord Tom Treacy will be between €300,000 and €400,000 per annum. Penneys traded out of the same store on a temporary basis until it developed its own retail building along the main street. TK Maxx was one of four companies in contention for the store. Darragh Cronin of Savills advised the landlord on the deal. Colliers International Dublin acted for TK Maxx.
In Waterford, the same trader is considering relocating to the new Railway Square mixed use scheme near the city centre following a decision by An Bord Pleanála blocking the company from trading in Butlerstown Retail Park on the city’s outskirts. Another local developer objected to the type of goods being sold by TK Maxx. The company opened the shop about 20 months ago after securing planning permission from Waterford County Council.
The High Court has since ratified the ruling of the planning appeals board and is expected to set a date shortly for the closure of the store.
The owner of the park, Jim Tracey, has moved to seek a rezoning of the park under a review of the development plan due next year. TK Maxx is paying a rent of almost €500,000 for 2,415sq m (26,000sq ft) in three adjoining buildings which were amalgamated. The 20-year lease provides for a break after 10 years.
Irish Times
www.buckplanning.ie
An unusual feature of the New-bridge letting is that the American trader will be paying the landlord 5 per cent of its turnover rather than a standard rent.
The deal underlines the radical changes being sought by an increasing number of high profile multiples since the downturn in consumer spending took hold at the start of 2009. Though many provincial landlords are happy to settle for a percentage of turnover where big name traders are concerned, the owners of premises in prime Dublin locations still prefer a straightforward rental agreement or, at the very least, a significant base rent as well as a percentage of the turnover.
TK Maxx recently offered the owners of the Jervis Centre in Dublin a base rent of €1.2 million as well as 7 per cent of the turnover. But with several traders chasing the same premises, the owner Paddy McKillen opted for US fashion giant Forever 21 at a rent of €2.75 million per year.
Meanwhile, negotiations between TK Maxx and Dunnes Stores on taking over the Irish company’s former department store in the Ilac centre have apparently ended without agreement. Dunnes is trading out of part of the space as well as from a store fronting on to Henry Street.
TK Maxx has just taken a 20-year lease of the stand-alone store of 2,322sq m (25,000sq ft) close to the Whitewater shopping centre in Newbridge. There will a break option in year ten.
Projections from the company suggest that its turnover should range between €6 million and €8 million per annum. If either of those figures are reached, then the rent going to landlord Tom Treacy will be between €300,000 and €400,000 per annum. Penneys traded out of the same store on a temporary basis until it developed its own retail building along the main street. TK Maxx was one of four companies in contention for the store. Darragh Cronin of Savills advised the landlord on the deal. Colliers International Dublin acted for TK Maxx.
In Waterford, the same trader is considering relocating to the new Railway Square mixed use scheme near the city centre following a decision by An Bord Pleanála blocking the company from trading in Butlerstown Retail Park on the city’s outskirts. Another local developer objected to the type of goods being sold by TK Maxx. The company opened the shop about 20 months ago after securing planning permission from Waterford County Council.
The High Court has since ratified the ruling of the planning appeals board and is expected to set a date shortly for the closure of the store.
The owner of the park, Jim Tracey, has moved to seek a rezoning of the park under a review of the development plan due next year. TK Maxx is paying a rent of almost €500,000 for 2,415sq m (26,000sq ft) in three adjoining buildings which were amalgamated. The 20-year lease provides for a break after 10 years.
Irish Times
www.buckplanning.ie
Wednesday, 23 December 2009
Permission for 269 dwellings at Great Connell Road, Newbridge refused
An Bord Pleanala refused permission to Pat McGinn and Bernard Ross for 269 dwellings at Great Connell Road, Newbridge, Co. Kildare on the basis that the proposed development would be premature by reference to the existing deficiencies in the provision of sewerage facilities and the period within which this constraint may reasonably be expected to cease and would be prejudicial to public health. Kildare County Council’s decision to grant permission for the proposed development (subject to 69 conditions) was appealed by Mr. Desmond Buckley of Great Connell Stud.
The deficiency is the provision of sewerage facilities (Osberstown) is continuing to be a major obstacle to development in Naas/Newbridge.
Kildare Planning Blog
www.buckplanning.ie
The deficiency is the provision of sewerage facilities (Osberstown) is continuing to be a major obstacle to development in Naas/Newbridge.
Kildare Planning Blog
www.buckplanning.ie
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