The Zara effect; smaller fashion operators fear it while those not in direct competition clamour to be get close to it to benefit from the high levels of passing trade it generates.
Dublin's north city centre retail landscape has not been immune to the shock waves created by Zara's formidable presence. In order to survive the impact many fashion retailers in the area may be forced to revise their business operations.
"There is a shift taking place. It's putting pressure on everybody to lower their prices and this competition has been good for customers," says Tom Coffey CEO of the Dublin City Business Association (DCBA)
Spanish retailer Zara has an intimidating edge over its rivals because of its ability to churn out vast quantities of catwalk knock-offs at low prices at its own manufacturing base. Around 50 per cent of clothes are made in Europe and 80 per cent of its product is European-sourced. The Inditex group of clothing companies to which Zara belongs spends as little as 0.3 per cent of revenues on advertising which allows it to keep costs to a minimum.
The shelf life of fashion lines is brief - around two weeks - and this rapid turnover of stock keeps the consumer on its toes.
"Before Zara entered themarket, a man's cotton shirt generally cost from €45 to €120 in the city centre. Since Zara offered them for €25 , other shops have had to bring their prices down, " says Mr Coffey.
Another factor in its favour is that it imports from another Euro currency country.
"This gives it a competitive advantage on those importing through sterling and the dollar.
"Those who don't change to a Euro supply chain probably won't be around in three years. If goods are imported through another currency supply chain everybody who handles them takes a mark up and that's why some of the prices are much more expensive. British fashion retailers operating in a sterling supply chain are suffering as a result. "
He says that businesses are in trouble "not just in Dublin but all over the country.
"The economic climate is volatile with some doing very well and others badly, its part of the evolution and transition of the economy."
The shelf life of a fashion garment is now 8 weeks on average. Those who those cannot respond to the fickle whims of the market may be left behind. Competitive pricing is a major factor.
"Some of the British multiples are overpriced and charge 25 per cent more here than they do in Belfast in some cases. You can often get the same product in the Eurozone for 50 per cent less. The dominance of sterling operators is over and we are now seeing the emergence of continental operators like Lidl, Aldi, Mango and the Inditex group of clothing companies which includes Pull & Bear and Zara and has 1,836 stores in 48 countries."
These European operators are often content with smaller mark up which keeps prices down.
"At the end of the day unless you don't get the price down you won't be around in a few years time."
City centre retailers have been feeling the pinch in recent times. Traffic congestion exacerbated by Luas works has seen more people opting for the perceived greater convenience of out-of town shopping centres.
While the refurbishment of Roches Stores has been a major boon to Henry Street, the Ilac Centre, which is scheduled for redevelopment, continues to be an obstacle to a full-scale renaissance of the area.
Fintan Tierney of Tierney O'Neill commercial agents believes the sooner the Ilac centre is developed "the better. It will improve street furniture and lighting and until this is done any crossover to O'Connell Street is hampered."
However some believe the days of the suburban shopping centre cashing on the back of city centre upheaval are numbered. The city centre can ultimately provide more choice particularly given that three more shopping complexes in the pipeline, at the former Eirecom buiilding in South King Street as well as the proposed Milennium Mall in O'Connell Street and also at thejunction of Parnell Street and Moore Street. Several department stores have added substantially to their premises including Clerys, Roches and Arnotts and the Luas when it is up and running will improve access to town.
Mark Reynolds of Hamilton Osborne King says that Zara has driven footfall upwards on the Henry Street/Mary Street stretch and has improved trade for many.
When a unit came on the market on Henry Street - which was subsequently taken by a shoe retailer - he mentioned the fact it was across the road from Zara in the marketing material. Lisa McGrane of Jones Lang La Salle agrees that Zara has "re-inforced that end of town and created a pull ."
Zara's Henry Street branch had the busiest opening day of all its 600 stores worldwide, despite the fact there was no fanfare or razzmatazz or extensive advertising campaign. Similar excitement is expected to be generated over the opening of its branches in the Blanchardstown, where it will have a 15,000 sq ft portion of Roches Stores and Dundrum Town Centre.
Zara may not enjoy retail dominance for long however. The Swedish Hennes & Mauritz (H&M)company is also looking to get a foothold in the market and it currently operates 970 stores in 18 countries.
