A new designer fashion outlet aimed at shoppers throughout much of the Republic is to open next June in the Co Laois village of Rathdowney. The Scottish property group, Morrison, is to begin development work next month on the £30 million complex, which will have about 40 so-called factory outlets selling out-of-season and end-of-line merchandise from high-profile brands.
Although Roger Day's Ballylahain Group received planning permission for the complex in 1997, it decided to sell on the site rather than develop it because of the specialised nature of the business. Morrison, which has a subsidiary company specialising in designer outlets, recently bought the 11-acre site, which is located over an hour's drive from several cities and towns. It is 76 miles from Dublin, 74 miles from Wexford, 56 miles from Waterford, 59 miles from Limerick, 84 miles from Galway and 91 from Cork.
The centre is likely to accentuate the problems facing the factory outlet centre in Killarney run by Green Property Co.
Although factory outlet shopping has been one of the fastest growing sectors of the British and US retail markets, some Irish planning authorities have been reluctant to endorse the concept, usually citing the inadequacy of the roads as a reason for refusing planning permission.
Two different developers were recently refused planning permission for outlet centres at Kill, near Naas, and a site on the Dublin-Belfast road outside Dundalk.
Morrison operates two centres in the UK and recently opened Germany's first outlet near Berlin. It plans to have 15 centres across Europe within five years. The company insists on having a strong management presence at each site.
The Rathdowney complex will have a floor area of 100,000 sq ft, which will include a restaurant and a playcentre for children.
Traders will be obliged to sell goods at discounts ranging from 30 to 70 per cent, according to Morrison Outlets director Dominic Browne. Rents will range between £20 and £25 per sq ft but, more significantly, traders will also have to pay 12 per cent of turnover. Short-term leases will be available to ensure that only successful traders will remain at the centre.
Larry Brennan of letting agents Hamilton Osborne King says he is confident the concept will work because buyers will be offered end-of-line and last year's stock at knock-down prices.
"The only difference is that the stock is at least 30 per cent cheaper. If they are fairly classic clothes, it doesn't matter if they are a season off."
