ARNOTTS ambitious plan to virtually double its store size will be completed by August next year, shareholders were told yesterday. Two phases of the development are being built together to overcome delays caused by planning permission objections.
The programme includes an extra 160,000 square feet of retail and office space at the company's Liffey Street and Middle Abbey Street properties as well as a multi storey car park.
Arnotts' managing director, Mr James Duignan, said yesterday that the delay would add some costs, but these would not be significant. The redevelopment programme is costing £34 million, of which £27 million is building costs, with the remainder being fitting out costs. Funding is in place and shareholders have not been asked to contribute.
The department store currently has about 160,000 square feet of retail space, of which 20 per cent comprises concessions run by franchisees including Principles, Adam, Viyella, Clarkes and River Island. Around 60 per cent of the new retail space, comprising 120,000 square feet, will be occupied by concessions. Overall one third of the whole development will be occupied by concessions.
Arnotts will face stiff competition from the £100 million Jervis Street shopping centre when it opens in October. The centre includes big name - attractions such as Boots Chemist, Debenhams and Marks & Spencer.
Arnotts' chairman, Mr Tom Toner, acknowledged that it was not ideal that Jervis Street would be open ahead of them. However, the Arnotts redevelopment would greatly enhance the department, store, and was "the fulfilment of a dream which Arnotts has had over a couple of decades".
The company was not looking at the redevelopment as an opportunistic move, he said.
Mr Toner said Arnotts was examining at the possibility of locating a branch in the suburbs. He said he would not rule out such a move in the future, but the company's priority was its city centre interests.
Mr Toner said Arnotts is trading ahead of last year so far in 1996. Group turnover, excluding franchise sales, increased by 8 per cent to £50.67 million, while franchises sales grew by 6.6 per cent last year.
Brinks Allied, the security company in which Arnotts is a 50 per cent shareholder, is making money, but Arnotts share is still for sale, another director, Mr Michael Duignan, said. Arnotts share of Brinks' profits amounted to £88,000 last year.
This compared with a loss of £300,000, the previous year. Brinks' is making a healthy recovery, Mr Duignan said. "We would still sell our stake," he said, "but not at the price that we would have sold it before." Mr Duignan said Arnotts had received some "tentative offers" for Brinks' about 12 months ago, but nothing since.
