The current trend of taking space in major retail out-of-town developments isn't confined to fashion and home stores. Last year, Airside Motor Park in Swords opened as Ireland's largest motor retail park. Nearly 10 dealers selling 15 different brands have invested €80 million there. Some sold outlets in more mature residential areas to re-locate to the motor park.
Close competitors are now located side-by-side, lured by cheaper land, access to the M1, N1 and M50, the opportunities to feed oFf each other's business and to attract customers visiting Harvey Norman, B&Q and others in the retail park. They can now walk across the road and sashay from one motor dealer to another.
In a press day last week, the dealers said customers benefit as they can view a host of brands within walking distance of each other in modern, relaxing, family-friendly showrooms. It takes 10 minutes to walk the length of the park.
A car-collect and drop back facility to the nearby Dublin Airport for customers wanting their cars serviced at the motor park while abroad, could be arranged.
Their investments were driven by new rules on car sales in the EU and locating near each other would create sales economies.
But when talking to dealers amongst the bays of new cars, the competition between them is evident. According to some, a number have easily shifted 700 new cars this year and at least one has matched it in used cars.
Michael Barrable Motors, which has re-located to Airside, offers the most brands, (Fiat, Alfa Romeo, Chrysler, Jeep, and Kia) in show rooms that spread over two levels. Ford had the smallest surface area but incurred the expense of going underground where it can store over 200 cars.
Competing dealers said to view "Bill Cullen palace" before leaving. Citygate Renault is on one of the biggest sites covering two and a half acres. Meganes, Lagunas, Scenics, and commercial vehicles are sold from a show room with cream ceramic tiles, a Venetian-type spiral staircase that leads to a mezzanine, and a ceiling awash with soft-lights.
Volvo and Landrover share space in HB Dennis Airside, where talk was of the new Volvo C70 due in Ireland in January. There was a good fit between Volvo and Landrover, the dealers said as both were premium brands in the Ford stable. While the Landrover area looked pretty much "boysville", the Volvo space was totally neutral, though a recent US demographic, the latte-drinking, sushi-eating Volvo women drivers, sprung to mind. HB Dennis also carries Subaru and Hyundai there. Richard McAllister of McAllisters, formerly Malahide, said his premises includes some of the VW corporate look.
VW Group's retail layout strategy includes having only one customer entrance to the showroom faced by a greeting desk with cars parked facing the customers so they can view the front angle with ease. Windsor Motors carries Nissan at Airside while Chevrolet and SsangYong are available at Airside Chevrolet.
From October 1st, the final piece of legislation on the reform of new car selling in Europe comes into force. Franchise dealers will be able to set up wherever they chose in the EU. But a recent review of the industry in Europe by PriceWaterhouseCoopers, "Block exemption, bar-room brawl spills onto the streets", says it's likely to be business as usual.
Dealers in the 10 new member states were the most vulnerable as they only had a year to adjust their strategies to fight off competition.