THE NUMBER of vacant units in Limerick’s core retail area fell by more than 15 per cent over the last year, according to a report compiled by Limerick Chamber. ‘The Changing Face of Retail’ analyses the retail sector and the realities it faces in 2013, particularly in Limerick City.
Despite the recent high-profile closures of music giant HMV and DIY outlet Wickes, the report states that Limerick appears to be bucking the trend with more retail units occupied in the city in January 2013 than in January 2012.
Vacancy rates currently stand at 9 per cent, compared to the national average of 11 per cent.
The report’s author, Limerick Chamber economist Dr Órlaith Borthwick, examines the impact of issues such as the economic climate, rents and online shopping on the traditional high street city model and makes a number of recommendations on how some of the challenges could be addressed.
She commented, “The number of available units and the level of retail openings and closures is a real indicator of a city’s retail performance. Investment in major public realm upgrades is paying off. Just look at William Street – there are currently no units available to let in William Street. Even back in the ‘boom’ years there were units available.”
Dr Borthwick stated that Limerick is “a very cost competitive location for businesses” and predicted that the city would experience continued growth in 2013.
The report also noted the increase in the number of retail chains applying for examinership citing unsustainable rental rates as their biggest challenge.
“If the government is serious about protecting jobs, it needs to urgently address the impact the demands of upward only rental contracts are having on retailers”, the report stated.
