International fashion multiple Zara is expected to open new outlets in Blanchardstown Town Centre in Dublin and Mahon Point in Cork after the highly successful launch of its first shop in Dublin's Henry Street.
The company has also been looking for suitable premises in Galway and Limerick. Mike Shearwood, head of the Zara operation in the UK and Ireland, yesterday complained that it was very difficult to obtain large units on Irish high streets because of high values and rents and lack of suitability.
Mr Shearwood, who is due to address a breakfast briefing by Hamilton Osborne King this morning, said: "Many of these owners possibly lack the vision to sell to a foreign retailer or else they overvalue the property so much that it is not possible for the retailer to make a profit." He suggests that the "barriers to entry" should be removed and locals should work in partnership with Zara in sharing the risks and rewards "enabling us to successfully enter this vibrant market". Zara invests between €2 and €4 million in each refurbishment and maximises the value of the space by using over 85 per cent of it for retail purposes. Zara's opening on Henry Street before Christmas eclipsed all other openings by the company, according to Mr Shearwood. "We have over 1,800 stores in 48 countries and this was by far the most successful. We almost sold out and had to arrange a special delivery to be shipped in to ensure we had sufficient stock for the weekend."
No management buyout at DTZ
A proposed management buyout at DTZ, the commercial wing of the Sherry FitzGerald Group, is not to go ahead, according to reliable sources. All six executive directors of DTZ had initiated moves to acquire the commercial property business but, after a series of meetings, apparently agreed a formula that will allow them to acquire further shareholdings in the company.
This will obviously mean that the Sherry FitzGerald Group will now have to share some of its 80 per cent stake in DTZ with the executive directors. The remaining 20 per cent stake is held by DTZ in London. Mr Mark FitzGerald, chief executive of the group, is also taking over as chief executive of DTZ following a decision by outgoing chief executive Sean McCormack to leave the company to set up his own business.
The Sherry FitzGerald Group is the largest estate agency in the country with a turnover last year of over €30 million. The company has greatly enlarged its commercial property business since linking up with DTZ about six years ago.
