Department Stores in Ireland

PROSPECTS

Increased pressure on department stores, with further closures anticipated

Although department stores continued to see current value growth in 2019, this was at a lower level than seen in any other year of the review period. Meanwhile, the number of outlets and the sales area declined for another consecutive year.

Domestic players expected to benefit from strong brand loyalty

Nevertheless, domestic retailers are expected to perform strongly over the forecast period, with Dunnes Stores and Brown Thomas both set to see growth due to strong brand loyalty and the high-end service that customers receive in their stores. However, Dunnes Stores could see slowing sales growth in department stores if the company decides to invest in its e-commerce channel.

The single House of Fraser store in Ireland faces closure in 2020

House of Fraser continued to struggle in 2019. The retailer was rescued in 2018 by UK firm Sports Direct.

COMPETITIVE LANDSCAPE

Going upmarket benefits Dunnes Stores

Domestic player Dunnes Stores strongly increased its share of value sales in department stores in 2019, outperforming the overall category. The company continued to go upmarket via high-end collaborations with designers such as Paul Costello and Lennon Courtney within apparel and homewares respectively.

Heatons brand being phased out following takeover

Following the acquisition of Heatons by USC in Ireland in 2017, the Heatons retail brand, which also includes SportsWorld sections within its stores, is slowly being phased out of Ireland. USC is rebranding the stores under the USC, Sports Direct and BrandMax brands.

Arnotts innovates and works hard to maintain footfall

To try and combat the growth of e-commerce, the department store Arnotts invested heavily in its beauty department. The Arnotts Beauty Hall was given a makeover in 2018, with parent company Selfridges and Co investing heavily in its single store in North Dublin.

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