OCCUPANCY AT CHQ, the flagship retail centre in Dublin’s IFSC has dropped below 50 per cent.
The landlord, the Dublin Docklands Development Authority (DDDA), says it remains committed to the ailing centre, which has struggled since it was opened in 2007.
A spokesman defended the DDDA’s work in marketing the mall against claims by some of the tenants that they were being neglected because of the authority’s wider problems in the docklands.
Last Friday, The Irish Timescounted 14 vacant units in CHQ, while 10 were occupied – an occupancy rate of 42 per cent. However, the spokesman put occupancy at ''about 50 per cent''. Food units in the centre were busy over lunch, but by mid-afternoon there were no more than 20 shoppers in the mall.
The decline of the centre is causing concern among the remaining retailers. One told The Irish Timesthat the marketing of the centre was ''crap'' and claimed the public barely knew of CHQ's existence. ''There isn't even a sign up on the front saying this is a shopping centre, or a directional sign from the new Luas stop out the back,'' she said.
‘‘They’re bad for morale,’’ said another shop manager, pointing to a row of empty units across from his own, ‘‘but I suppose they tell their own story.’’ Sales held up before Christmas and during January but now shoppers were being careful with their money.
Among the empty units are two of the largest shops at the front of the centre, one of which is now being used for pilates classes. A sign on the Nue Blue Eriu shop says it is closed ‘‘today for unforeseen reasons’’ but that was over three months ago and it hasn’t opened since.
The remaining shops include anchor tenant Meadows and Byrne and established retailers such as Mitchells wines, Fitzpatricks shoes and tailor Louis Copeland. Staff in a number of these units said while business had been hit by the downtown in the financial services sector their core clientele remained loyal.
The value of the centre has declined from a peak of €50 million to just €17- €20 million, according to a leaked internal report to the board of the DDDA. It predicts a rents shortfall of €465,000 this year, while the cost of service charges for empty units will be €320,000.
The authority spokesman refused to discuss the financial situation of the centre but admitted that the tenants were facing ‘‘challenging times’’.
Planning restrictions on signage existed in all areas of the Docklands, he added, and shop owners would have been appraised of this. The DDDA had invested large sums in the marketing and promotion of the centre over the past two years and would continue to do so.
The extension of the Luas line and the opening of the convention centre next September would provide new opportunities for CHQ. There were no plans to close the centre or limit opening hours, he said.
The building in which CHQ is located was built in 1820 as a wine and tobacco warehouse.