The slow but steady revival of Grafton Street as Dublin’s foremost shopping destination continues with Skechers set to open a standalone store in the premises formerly occupied by Tommy Hilfiger.
The international footwear giant is understood to have signed a new long-term lease on all 9,500sq ft of space at 13-14 Grafton Street with a view to opening for business in the autumn. While the letting agent Savills declined to comment on the terms of the deal, The Irish Times understands Skechers has agreed to pay a rent of €900,000 per annum. The figure represents a reduction of 47 per cent on the near €1.7 million rent Tommy Hilfiger had been paying before it exited the property in May of last year. While the impact of the Covid-19 pandemic is believed to have influenced the US retailer’s move to a certain degree, it is understood that the company decided to exercise the 15-year break option on its 25-year lease 12 months early. Tommy Hilfiger is believed to have paid the near €1.7 million rent due for that period.
Commenting on its decision at the time, a spokeswoman for Tommy Hilfiger said: “In line with our strategic objective to further reach and engage with our consumers, we are focusing on next-generation retail experiences to stay ahead of continuously changing shopping behaviours.”
Tommy Hilfiger had occupied the Grafton Street property since 2007. The property, which comprises 557sq m (6,000sq ft) of retail space at ground, first and second floor levels, and a further 325sq m (3,500sq ft) of ancillary space, has changed hands twice since then. In 2009, the building was acquired for about €25 million by the German-headquartered real estate investment group Deka Immobilien. Having derived the benefit of seven years’ of boom-era rental income, Deka secured a significant uplift on its original investment when it sold the property quietly to the Brennan family, owners of the well-known bread business, for about €35 million in 2016.
The news of Skechers’ arrival on Grafton Street will be seen as another vote of confidence in Dublin’s premier shopping district, coming as it does off the back of recent announcements relating to store openings by new, high-profile occupiers. Lego is due to open its first standalone Irish store at number 41 on August 18th, while luxury footwear and handbag retailer Russell & Bromley has recently signed a lease at number 76.
