Dublin's Grafton Street is to get a major new store with American fashion multiple Tommy Hilfiger as tenant.

The four-storey building is to be developed by Marks & Spencer on the site of the former Grafton Arcade. The facility was apparently first offered to the famous New York jewellers Tiffany but they turned it down because of the high rent of around €1.68 million per annum.

Tommy Hilfiger was eventually chosen after outbidding another fashioner retailer Massimo Dutti, a sister company of Zara. Karl Stewart of DTZ Sherry FitzGerald advised Tommy Hilfiger who also have stores at Trinity Street, Liffey Valley and Dundrum.

The Grafton Street store will trade out of 696sq m (7,500sq ft) at ground, basement and first floor levels with storage space overhead.

The Zone A rent is expected to be largely similar to the record rent being paid by River Island on the opposite side of Grafton Street.

The fact that a second store is now to be on the same rent level could have a knock-on effect on the rents of other large stores on Grafton Street.