Penneys in bid to develop €75m Kildare distribution centre

While most retailers continue to grapple with the challenges posed by Covid-19 to their business, the growth of Penneys continues apace.

Having seen the performance of its shops across Ireland exceed those recorded prior to the pandemic following the lifting of the lockdown earlier this summer, the fast-fashion retail giant has submitted a planning application to Kildare County Council to develop a new, state-of-the-art warehousing and distribution facility at Great Connell in Newbridge.

Should it get the go-ahead, the proposed 46,452sq m (500,000sq ft) logistics hub will comprise a distribution centre, warehouse and office space on a 15.3-hectare (38-acre) site. A spokeswoman for Penneys said the international fashion retailer would invest €75 million to develop the facility, demonstrating its long-term commitment to Ireland, high street retail and local communities.

The Irish Times understands that Penneys has engaged real-estate advisers JLL and Savills as joint agents with a view to securing a forward-funding partner for the facility.

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Application

As part of its planning application to Kildare County Council, Penneys outlines measures that it intends to take in the new facility to maximise efficiency and reduce its environmental impact, such as rainwater harvesting for water reduction, use of air-source heat pumps to provide heating where required and the use of solar panels to reduce primary electrical energy input.

There will also be more than 2.3 hectares (5.6 acres) of landscaping including native Irish trees, wildflower meadow and ponds throughout the site.

The proposed facility is being developed as an addition to Penneys’ current depot in Naas, which has serviced the company’s operations in Ireland for the past 17 years.

The new Newbridge depot will act as an all-island facility, creating additional capacity and serving its shops in the Republic of Ireland and Northern Ireland.

It will take three years to complete, subject to planning permission, and will also support Penneys’ ongoing national and international growth and supply chain network strategy into the future.