MARKET RESEARCH:Numbers are down 9 per cent on Grafton St and 12 per cent on Henry St in the first three months of 2008

A NEW STUDY shows that there has been a significant fall off in the number of shoppers visiting both Grafton Street and Henry Street in Dublin.

The pedestrian count carried out in the first three months of this year by CB Richard Ellis shows that the number of shoppers on Grafton Street is down 9 per cent on a five-year average while Henry Street showed a decline of 12 per cent on a five-year average.

The study of the retail sector also revealed that Dublin has not been immune to the slowdown overseas with yields here moving out by 25 basis points.

The shift means that prime high street properties are now showing yields of 2.75 per cent while shopping centres are yielding 4 per cent at the moment.

The report confirms that the pace of retail development generally has eased considerably in the last two years.

The estate agency says that developers now appear to be more cautious regarding shopping centre development and, in any event, the scarcity of development finance is inhibiting further speculative schemes. Marie Hunt says there is no doubt that concerns about rising unemployment, a stagnant housing market and less favourable economic conditions generally are starting to impact on consumer spending patterns, with some retailers reporting tougher trading conditions in recent weeks. Threats of potential oversupply, while very real, had, however, been overstated in recent months.

CBRE says that a further 120,000sq m (1.292 million sq ft) of new retail park space is scheduled for completion by 2009 while a further 250,000sq m (2.691 million sq ft) of new shopping centre accommodation is due to be developed by 2009. Significantly, 20 per cent of the shopping centre space to be built in the next two years will be in Dublin while 50 per cent of the retail park buildings - including the 30,500sq m (328,300sq ft) Ikea store - will also be in and around Dublin.

Cormac Kennedy of the agency contends that the demand for retail space will remain strong as only 35 per cent of international retailers are represented here so far.

While it was inevitable that retail spending would ease over the course of 2008, overseas retailers continued to enter the Irish market and existing retailers continue to look for expansion opportunities.