Outlet retailing thrives and grows throughout europe - ICSC
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Outlet retailing
thrives and grows
throughout Europe
City Outlet Bad Münstereifel
inside:
2014 European outlet brands report Channel Checks in Europe, Asia
Give the lady what she wants SE Asia’s outlet potential
Expansions, planned center updates Europe’s best promotional events
A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE
M C ARTHURGLENGROUP.COM
ASHFORD PHASE II M C A RTH URGLEN
WE ARE DOUBLING THE SIZE OF ASHFORD DESIGNER OUTLET, LOCATED JUST 37 MINUTES FROM LONDON
FOR LEASING, CONTACT NICK BRADY AT NICK.BRADY@MCARTHURGLEN.COM OR +44 (0)207 535 2338
CONTENTS
Vol. 10 No. 4 Fall 2014
PAGE 4 PAGE 12 PAGE 22
STaFF Inside
IOJ/ICSC
1221 Avenue of the Americas
41st Floor
4 2014 European Outlet Tenant Report
New York, NY 10020-1099
www.valueretailnews.com 8 ‘Give the lady what she wants’
ICSC EUROPE
London, +44 20 7976 3100 12 Europe embraces center expansions
icsc.europe@icsc.org
Editor in Chief/Director 16 Channel Checking Factory Krakow
Linda Humphers
+1 727 781 7557 ext. 3 18 Channel Checking Designer Outlet Ashford
lhumphers@icsc.org
Managing Editor 22 Germany’s urban outlet center
James Mammarella
+1 646 728 3661
jmammarella@icsc.org
24 Lessons learned from crossing the pond
Art Director/Ad Production 26 Leasing catches fire
Randy Gdovin
+1 727 781 7557 ext. 4
rgdovin@icsc.org 28 Channel Checking Homebush DFO
Advertising
Sally Stephenson
30 Southeast Asia’s outlet potential
+1 847 835 1617
Fax +1 847 835 5196 32 Best center events engage shoppers
sstephenson@icsc.org
Subscriptions 36 Prague Outlet grabs Galleria Moda
+1 727 784 2000
ICSC@Appliedtechres.com 38 European outlet pipeline grows
Contributing Writers
Michael Baker
Marie Driscoll Advertiser Index
Amy Laughinghouse BFC Empire Outlets............................. IBC Neinver.................................................... 7
Brendon O’Reilly Fashion House Group........................... BC OCI Wolfsburg........................................ 11
ICSC Officers Florentia Village...............................20-21 Prague Outlet........................................ 15
Robert F. Welanetz, CRX, CSM, Chairman ICSC European Outlet Conference......... 25 Stable International.............................. 26
Michael P. Kercheval, President and CEO ICSC RECon........................................... 37 VRN Subscriptions................................ 35
Rudolph E. Milian, CRX, CMD, CSM, Publisher
McArthurGlen.......................................IFC Zsar Outlet Village................................. 27
International Outlet Journal is a publication for the
non-U.S. factory outlet industry. Copyright © 2014
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 3
State Of The Industry
2014 Outlet Tenant Report:
Europe/CEE/Middle East
B y LINDA HU M P HERS
E d i to r i n C h i e f /Di re c to r
One of the universal truths about
outlet retailing is that it’s economically
resilient, thanks to shoppers who dis-
cover the sector everytime the economy
tanks. In fact, the only problem the in-
dustry has during low cycles is that lend-
ers are slow to fund new outlet centers
and outlet-chain expansion. The demand
for more space that started being pent
up in 2008 finally found relief in 2012
when nine outlet centers opened; 12
opened the following year and 11 will
open this year.
Although a high number of outlet cen-
ters aren’t yet opening in Europe, CEE and
the Middle East, a look at the growth of
outlet chains over the last three years shows
that the industry is definitely on the move.
Since 2011, the last time IOJ present-
ed the European Outlet Tenant Report,
ASICS, whose name comes from the Latin phrase for “sound mind, sound body,” oper- the number of outlet brands operat-
ates one of Europe’s top 20 outlet chains. (Continued on page 6)
Largest European Parents
Parent Concepts Number
Company of Stores
VF 7 For All Mankind, Kipling,
Lee Wrangler, Napapijri, Nautica,
North Face, Timberland, Vans, VF 166
Nike Nike, Converse 143
Adidas Adidas, Reebok, Rockport 142
PVH Calvin Klein, Tommy Hilfiger, Van Heusen 141
Levi Strauss Dockers, Levi’s 113
19 Concepts 705
Source: VRN/IOJ
Comparison of Outlet Chain Growth
In Europe/CEE/Middle East with North America
Europe/CEE/ U.S./Canada/
Middle East Mexico
2014 2011 2014 2011
Number of outlet centers 157 132 205 179
Number of outlet chains 3,833 2,736 375 304
Number of outlet stores 10,980 7,905 13,796 12,994
Michael Kors (above) and its American rival Coach both operate
outlet chains in Europe, but Kors has a much bigger European Average chain size 3 units 3 units 37 units 43 units
presence. Source: VRN/IOJ
4 I n t ernational Ou tle t Journal Fal l 2014
172 crossovers: outlet chains tenanting both sides of the Atlantic
7 For All Mankind Etnies:exs Company Stores New Balance Factory Stores
Abercrombie & Fitch Outlet Etro Nike Factory Store
Adidas Outlet Faconnable Nine West Outlet
Aeropostale Outlet Famous Footwear Outlet North Face Outlet
Aerosoles Outlets Fendi Oakley Vault
Aldo Shoe/Aldo Kids Outlet Footlocker Outlet Stores O’Neill
All Saints Spitalfields Fossil Company Store Original Penguin Outlet
Allen-Edmonds Company Stores Fox OshKosh B’Gosh Outlet
Anne Fontaine Fragrance Outlet Pearl Izumi
Armani Outlet Frette Perfumania
Asics/Onitsuko Tiger Furla Perry Ellis Factory Store
Baccarat/Lalique Outlet Gap Outlet Polo Ralph Lauren Factory Stores
Bally Outlet Geox Prada
Banana Republic Factory Stores Godiva Chocolatier PUMA
BCBG MaxAzria Gucci Outlet Quiksilver
Beauty Outlet Guess? Factory Store Reebok/Rockport
Benetton Outlet Gymboree Roberto Cavalli
Billabong Outlet Hanesbrands/Bali Playtex Champion rue21/rue21 etc!
Bon Worth Helly Hansen Salvatore Ferragamo
Bose Retail Stores Outlet Helzberg Diamonds Outlet Samsonite Company Stores
Bottega Veneta Hollister Co. Outlet Sanrio
Brooks Brothers Factory Store Home & Cook Sarar
Burberry Factory Outlet Hugo Boss Factory Store Saucony Factory Outlet Stores
Burlington Brands Hurley Outlet Seiko, The Company Store
Burton Snowboards Hush Puppies & Family/Merrell Sebago Skechers USA
Calvin Klein Izod Sony
Camille Studio/Group USA Jimmy Choo Steve Madden
Carter’s Outlets Jockey Outlet Sunglass Hut
Champion Journeys/JourneysKidz Sunglass Station
Charlotte Russe Juicy Couture Outlet Stores Swarovski
Charming Charlie Kate Spade Outlet Stores TAG Heuer
Children’s Place Outlet Kenneth Cole Company Stores Talbots Outlet
Claire’s/Icing Kipling Factory Outlet Ted Baker
Clarks/Bostonian Outlet Kitchen Collection Thomas Pink
Coach Factory Store La Perla Timberland
Cole Haan Lacoste Outlet Tod’s
Coleman Factory Outlet Lancome Company Outlet Tommy Hilfiger/Kids
Columbia Sportswear Outlets Lands’ End Inlets Tory Burch
Converse Outlets Le Creuset Factory Outlet True Religion Brand Jeans Outlet
Corningware Corelle Revere Factory Stores Lee Jeans/Lee Wrangler Tumi
Cosmetics Company Store Lenox Factory Outlet U. S. Polo Assn. Outlet
Crabtree & Evelyn Outlet LeSportsac Factory Stores Ugg Australia
Crocs Outlet Levi’s Outlet Under Armour Factory House
DC Shoes Lids Van Heusen
Diane Von Furstenberg Lindt Chocolate Vans Outlets
Dickies Retail Stores L’Occitane Vera Bradley Outlet Stores
Diesel USA Loro Piana Versace Company Store
Disney Store Outlet Maidenform VF Outlet
DKNY Company Stores Marc Ecko Cut & Sew Vilebrequin
Dockers Outlet Marni Villeroy & Boch
Dolce & Gabbana Max Mara Vince
Dressbarn/Dressbarn Woman Merrell Vitamin World
Easy Spirit Outlet Michael Kors Volcom Outlet
ECCO Mountain Warehouse Waterford Wedgwood
Ecko Unltd Movado Company Stores Yankee Candle
Ermenegildo Zegna Outlet Store Naturalizer Outlet Yves Delorme Paris
Escada Outlet Nautica/Kids Zales Outlet
Source: VRN/IOJ Zwilling J.A. Henckels
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 5
State Of The Industry
Largest European Outlet Chains
(more than 30 stores)
Chain Number
of stores
Nike 115
Levi’s/Dockers 113
Adidas 82
Puma 82
Calvin Klein 73
Tommy Hilfiger 65
Home & Cook 62
Reebok/Rockport 60
Lacoste 58
Guess 54
Samsonite 52
Benetton 50
Desigual 50
Timberland 47
Tommy Hilfiger, one of three PVH outlet concepts in Europe, is widely known for its
excellent marketing programs and participation in center activities. Diesel 45
Geox 45
Asics/Onitsuka Tiger 44
Clarks 44
Gant 41
Triumph 41
Le Creuset 40
Lee Wrangler 39
Mango 39
Quiksilver 39
Tom Tailor 39
Villeroy & Boch 36
Hugo Boss 35
Lindt 35
Mountain Warehouse 35
Pepe Jeans 35
Gap 32
Puma’s many footwear styles, which range from seriously athletic to fashion-forward, Billabong 31
make the outlet chain a favorite in both Europe and North America. Polo Ralph Lauren 31
(Continued from page 4) than 15 percent of the stores. Marks & Spencer 30
Five parent companies operate a com- 34 outlet chains 1,719 outlet stores
ing more than 30 stores has more than bined total of 19 outlet concepts that Source: VRN/IOJ
doubled to 34 from 15, and the total also total more than 700 stores.
number of stores those chains operate Contrast those numbers with data from tenanted centers in both Europe and
has nearly tripled to 1,719 from 677. the U.S./Canadian sector, where there are the U.S. This year VRN/IOJ research
There’s more: IOJ’s 2014 Outlet just 375 outlet chains and 25 chains oper- shows more than 170 chains tenanting
Tenant Report, based on information ate more than 100 outlet stores. both sides of the pond.
available as of September, 2014, shows The character of European outlet retail- The reasons for the increase in retail ex-
that the total number of outlet chains in ing hasn’t changed. It is still an industry pansion are pretty straightforward. Brands
Europe, CEE and the Middle East has filled with a wide diversity of small chains. need outlets. The more stores they open
increased by almost 40 percent to 3,833 In the U.S., the average outlet chain oper- and the more products they produce, the
from 2,736 in 2011. ates 35 stores, but in Europe, outlet chains more they need outlets for disposals, for
And the number of stores operated still average just three units each. Although made-for-outlet goods (not very common
by those 34 largest chains has grown, on large chains are essential to outlet-center in Europe), for keeping their wholesale of-
average, to 50 stores from 45. In total, growth, the small chains keep tenant mixes fers fresh, for finding new customers.
the 34 largest chains operate more than interesting, which in turn, keeps shoppers Obviously, this need has helped outlet
1,700 stores. Put another way, less than returning to see what’s new. centers around the world flourish and
10 percent of the chains operate more Three years ago, 104 outlet chains evolve. c
6 I n t ernational Ou tle t Journal Fal l 2014
neinver.com Zweibrücken The Style Outlets Experience, Profitability and Future Because we are committed to a quality shopping experience based on location, architectural design, brand mix and services. The Style Outlets and FACTORY outlet centres offer choices that are functional and efficient while remaining attractive to shop operators and visitors. Because we have developed marketing and leasing strategies that ensure successful results, increasing foot traffic in 2013 by 12% and total sales by 11% compared to 2012. Because we develop and manage our outlet centres using principles of economic and environmental sustainability. We are creating the future of retail in Europe. 311,600 SQ.M. 1,450 SHOPS SPAIN GERMANY FRANCE ITALY POLAND PORTUGAL
Consumer Research
‘Give the lady what
A FISHy system of attract the big-name chains rather than
by Marshall Field’s maxim, “Give the lady
matching a shopper’s what she wants.”
While the sales performance achieved by
self-image with the the true masters of the art is impressive,
brands she likes best the constantly changing consumer means
many outlet centers actually under-serve
can provide a big their shoppers and lose between 20 per-
cent and 70 percent of potential turnover.
boost to outlet sales. Tenant performance makes it easy to
separate the heroes from the villains, but
By KEN GUNN star performers in some centers don’t
Contributing Writer automatically perform well at others.
One reason for this disconnect is that the
Ken Gunn, Director of Achieving a vibrant mix average European outlet chain has just
UK-based retail consul- of retailers that will engage and delight three units, which works against Europe’s
tancy FSP, has worked shoppers is an essential part of creat- diversity. Brands that succeed in Barce-
on more than 70 outlet ing the best-performing outlet centers. lona or Brussels might not work so well
centers in 25 European Since fashion brands account for nearly in Bari or Bratislava.
countries. A well- 70 percent of turnover, there is no more A number of complementary tech-
known and respected important merchandise category for any niques used to assist decision making have
outlet authority, Gunn center. some limitations. For example, the size
plays an active role in More commonly, though, outlet opera- of a customer’s purchase is often nar-
ICSC and is a regular tors plan their centers’ fashion mix more rowly reported without any description of
contributor at interna- by subcategories (outerwear, underwear the shopper. And consumer classification
tional conferences. or sportswear) than by the shopper’s systems like Cameo or Acorn provide effec-
emotional needs. Merchandising strate- tive descriptions, but their rigid categories
gies are often driven by the desire to can’t explain why a single individual will buy
from a diverse spectrum of
fashion brands.
Fashion brands have long
understood that age and
self-image underpin purchas-
ing decisions; as a result,
they position themselves to
serve specific niches. Using
a combination of traditional
classification methods and
consumer focus groups, we
have created a system for
improving the merchandise/
tenant mix at outlet centers.
Our system, FISH, which
we first launched in 2008,
takes its name from four
key purchasing perceptions:
fashionable, individual, safe
and homely [meaning utili-
tarian, not unattractive].
■ ■ ■ 1%
The key to FISH, which
has been adapted over
This White Stuff outlet store at Gunwharf Quays does more than fill the need for an apparel retailer. the years to keep up with
The brand attracts shoppers based on how they perceive themselves emotionally. consumers’ changing pref-
8 I n t ernational Ou tle t Journal Fal l 2014
she wants’ n Safe – This shopper, who sees
herself as having limited discre-
tionary income, is sending the
value message; she relies on
mass-market branded products
erences, is a simple, two-dimensional with Assureds, only less confi-
matrix of shopper attitudes. that don’t make distinctive claims
dent about fashionable purchas-
The first FISH axis captures shop- for performance.
ing decisions. This will often be n Homely – This shopper has no
pers’ thinking age (How young or expressed in terms such as “It’s a
old do I feel? How young or old do I wish to project any message; she
bit young for me.”
wish to appear?) subdivided into five n Old – No longer strives to make
buys only what she needs; price is
categories: important to her.
positive statements about herself
■ ■ ■
n Young – Highly influenced by through purchases.
peer pressure; fashion is a pow- ■ ■ ■ By using FISH’s age and image
erful identifier. The second FISH axis reflects mes- definitions, we can plot the position-
n Assured – Still young but no sages the purchaser hopes to convey by ing of fashion brands. In Figure 1, for
longer immature or led by peer wearing the purchased item: example, Armani, Burberry and Guess
pressure; makes up her own match up with Assureds; Bench, Superdry
n Fashionable – Purchases dem-
mind, makes sophisticated choic- and Gatta are match for Youngs, and Clas-
onstrate the individual’s fashion
es, doesn’t adopt the attitudes, sics/Individuals can be defined by brands
acumen; adherence to peer-group
lifestyles or values typical of older such as Basler, Bally and Jaeger. Tri-
dress codes and other indicators
self-perception groups. umph, Tom Tailor and Clarks are good
of group identity are of ultimate
n Family – Dominated by the examples of Family/Safe brands, while
importance.
financial considerations of running n Individual – she has enough
Zara, Reis and Ted Baker exemplify the
the home and caring for the fam-
Assured/Individual category.
savoir-faire to distinguish between ■ ■ ■
ily; prudent, sometimes displays transitory fashion and taste. She There are more than 2,000 fash-
Assured or Classic characteristics knows what suits her. What mat- ion chains in FSP’s European Outlet
for discretionary or special-occa- ters most is that the purchase can’t Center database. Figure 1 shows the
sion purchases. be a recognizable brand; branded percentage of these that fall within
n Classic – Typically, though not
goods must fulfill a clearly defined each FISH segment, together with
universally, post-family or an need but style, individuality and example brands.
empty nester; many similarities exclusivity are paramount. (Continued on page 10)
Figure 1 Outlet Brand Preferences
According to fashion stance and self-image perception
Fashion Fashionable Individual Safe Homely
V
Stance (fashion is (stylish, not a follower) (price matters more (buys only what
of ultimate than style) she needs)
Self-image
importance)
Perception V
Young Cross, Miss Sixty, Desigual, Skechers, Vero Moda, Claire’s,
Superdry Jack Wills Esprit
8% 6% 3%
Assured Emporio Armani, Zara, Reiss, Sinéquanone, Gap, Wolford, Café Coton,
Escada, Guess Ted Baker Trussardi Jeans
9% 26% 12%
Family Diesel Kids, Petit Bateau Tom Tailor, Clarks,
1% Triumph
21%
Classic Strenesse, Basler, Bally, T.M. Lewin, Jacques
Jaeger Vert, Sarar
6% 6%
Old Roman, Damart,
EWM
1%
Source: FSP
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 9
Consumer Research
(Continued from page 9)
The most significant outlet shop-
pers are Assured (48 percent of
brands) and Family (22 percent of
brands). By contrast, typical high
streets can be as much as 50 per-
cent Family, with Assured accounting
for just 15 percent to 20 percent of
fashion stores. This relatively limited
geographical distribution of Assured
brands – in all but the largest cities
and regional towns – is one of the
reasons outlet shopping appeals to af-
fluent, discerning, mobile consumers.
■ ■ ■
There is a clear relationship be-
tween fashion mix and outlet-center
performance. Figure 2 shows that
outlet centers in the top quartile of
performance have a much stronger This Nike store at Fashion Park Outlet Indija in Belgrade, Serbia, is filled with young shoppers
representation of Assured brands seeking a specific look and attitude.
than centers in the bottom quartile. It is
common for outlet centers that fail
Figure 2
to attract sufficient Assured brands Outlet Performance-Fashion Mix by FISH
to augment their fashion offers with
brands from the Young and Family 60%
categories. 50%
■ ■ ■
% Fashion Chains
The FISH metric is also help- 40%
ful in prioritizing which areas of a
30%
center’s merchandising mix needs
improvement. Figure 3 shows a 20%
simple comparison of turnover
against potential shopper expen- 10%
diture for a medium-sized outlet 0%
center in Northern Europe. The Young Assured Family Classic
greatest opportunity for growth 2
Bottom Quartile (avg €1450/m ) Top Quartile (avg €6500/m2)
exists in the Assured segment; if
conversion increased to the same
proportional performance seen Figure 3
in the Young and Family segments, Potential Spend Increase
turnover would increase by €4.7 €Millions
million. If a similar improvement
could also be achieved in the Classic €0 €5 €10 €15 €20
segment, overall sales at the center
could be increased by 24 percent.
Young
This type of analysis is also useful
in demonstrating the opportunities in
Assured
a center to potential tenants.
The FISH classification system
fills a knowledge gap by providing a Family
strong connection between the emo-
tional needs of outlet shoppers and
the brands they care about. When Classic
outlet operators make the effort to
ensure that those two are aligned,
conversion rates will soar, and every- Current Turnover Potential Shopper Spend
one will go home delighted. c
10 I n te rnational Ou tle t Journ al Fal l 2014NEW ARRIVALS:
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TIMBERLAND | VANS | WATCH STATION INTERNATIONAL
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designer outlets Wolfsburg – one of the largest designer outlet centres in northern Germany, managed and developed
by Outlet Centres International. We offer the perfect environment for your brand, featuring:
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a catchment area that attracts visitors from up to two hours drive-time including major cities like Hanover, Hamburg and Berlin
Phase 1 & 2: Let 95 % | Phase 3: Now pre-leasing
Outlet Centres International (UK) Ltd. | 55 High Street | Haslemere Surrey, GU27 2JY | United Kingdom
Hans Dobke | Chief Executive | Phone: +44 (0) 14 28 65 32 56 | hans.dobke@outletcentres.com
Stephan Schäfer | Managing Director | Phone: +49 (0) 151 12 21 63 55 | s.schaefer@oci-germany.deExpansions
Europe embraces expansions
to existing outlet centers
Confident developers are adding
phases 2, 3, 4 – and even phase
5 – to thriving outlet centers.
From England to Sicily, and from Vienna
to Moscow, clouds of construction dust are ris-
ing as developers expand their most successful
outlet centers. Even more projects are moving
from architectural drafting tables and local zon-
ing approval to hard timetables and purchases of
building materials. Here are some of the major
planned expansions from now through 2017.
Resolution Property, the developer of Rosada
Rosada Fashion Outlet
Fashion Outlet in Roosendaal, Netherlands between
Antwerp and Rotterdam, has brought in Advan-
tail to help lease the center’s planned 8,000-m2
phase 2. Advantail, which has a strong record in
France, will co-lease the expansion with Stable
International, which also manages and markets
the 16,500-m2 center. With phase 1 at 95 percent
occupancy, Resolution already has approvals for
phase 2, which will open by the end of 2015.
Originally developed by U.S.-based MDG, Rosada
opened in 2006. Resolution acquired the center
in December 2012, saying it would spend more
than €30 million on the acquisition and this
expansion. Tenants include Björn Borg, Calvin
Klein, Delsey Paris, Garcia, Levi’s, O’Neill, Qui-
ksilver, Vans and Wolverine.
Value Retail has planning approval to add a
multi-level, 7,053-m2 expansion to Kildare Vil-
Kildare Village lage in Ireland. The €50 million project will
provide space for 36 new retail units, a tourist
information center, two restaurants, office
space, more than 400 new parking spaces and
a pedestrian link to the adjacent Tesco. The
11,625-m2 center, which opened in 2007, is
50 miles southwest of Dublin. Tenants in the
center include 7 For All Mankind, All Saints,
Brooks Brothers, Coach, French Connec-
tion, Furla, Hugo Boss, Juicy Couture, Karen
Millen, Pandora, Thomas Pink, Tod’s/Hogan,
Tommy Hilfiger, True Religion and Wolford.
Al Alhi Holding Group is planning to
expand Dubai Outlet Mall, which opened
Dubai Outlet Mall in 2007. The 70,000-m2 center is 97 percent
12 I n te rnational Ou tle t Journ al Fal l 2014leased and draws 160,000 shoppers each week.
The expansion, which will connect to the existing
center, will be approximately 60,000 m2 and will
include a hypermarket, a multi-screen cinema,
a variety of restaurants, and lifestyle retail. An
opening date hasn’t been set. Outlet tenants in
DOM include Adidas, Asics, Burberry, Cacharel
Paris, Clarks, Cole Haan, Columbia Sports, Con-
verse, Crocs, Diesel, DKNY, Ecco, Esprit, Guess,
Kenneth Cole, Levi Strauss & Co, Mango, Nike,
Puma, Reebok, Skechers, Timberland, Tommy
Hilfiger and Van Heusen.
Hines is well along in both construction
and leasing activity for phase 2 of Outlet Vil-
lage Belaya Dacha in Kotelniki, just outside
the Moscow ring road. The official opening
of the 13,700-m2 expansion will take place
on December 27, 2014, with additional doors
scheduled to open for business in spring 2015.
The 21,300 m2 center opened in August 2012. Outlet Village Belaya Dacha
At full buildout it will accommodate more than 170
stores. Hines has partnered for financing with Belaya
Dacha Group. Phase 2 tenants will include Calvin
Klein, Hugo Boss, Van Laack, Karen Millen, Na-
papijri and The North Face.
Arcus Real Estate is adding 4,000 m2 to the
26,000-m2 Sicilia Outlet Village in Agira. The
expansion, set to open by yearend, will add approxi-
mately 30 new stores to the current 120. The center
opened in November 2010. It is in central Sicily,
70 minutes by car or shuttle from the coastal cities
of Palermo, Taormina and Siracusa. Tenants in the
center include Abercrombie & Fitch, Armani, Bialetti,
Bottega Verde, Ferrari, Gucci, Hollister, La Perla,
Pinko, Timberland and Tod’s.
(Continued on page 14) Sicilia Outlet Village
Expansions
to existing centers in Europe, Middle East and Russia
Name Market Developer/ Existing Existing Expansion Expansion Planned
Operator GLA sf GLA m2 GLA sf GLA m2 opening
Dubai Outlet Mall Dubai Al Ahli Holding Group 750,000 70,000 648,000 60,000
Sicilia Outlet Village Sicily Arcus Real Estate 280,800 26,000 43,200 4,000 Q4 2014
Outlet Village Belaya Dacha Moscow Hines 230,040 21,300 147,960 13,700 Q4 2014
Rosada Fashion Outlet Rotterdam Resolution Property 178,200 16,500 86,400 8,000 Q4 2015
Kildare Village Dublin Value Retail PLC 125,000 11,625 76,172 7,053
McArthurGlen Designer Outlets
Designer Outlet Roermond Düsseldorf McArthurGlen Group 376,600 35,024 162,000 15,000 2016
Designer Outlet Neumünster Hamburg McArthurGlen Group 291,150 27,077 71,000 6,603 Q4 2015
Designer Outlet Ashford Kent McArthurGlen Group 182,700 16,991 100,000 9,300 2016
Designer Outlet Serravalle Milan McArthurGlen Group 418,700 38,939 118,800 11,000 2016
Designer Outlet La Reggia Naples McArthurGlen Group 283,600 26,375 81,000 7,533 2017
Designer Outlet Noventa di Piave Venice McArthurGlen Group 202,900 18,870 65,000 6,045 2016
Designer Outlet Parndorf Vienna McArthurGlen Group 453,200 42,148 54,000 5,000 2016
Designer Outlet Swindon England McArthurGlen Group 206,600 19,214 50,000 4,650 Q2 2015
13 expansions 6 developers 3,979,490 370,063 1,703,532 157,884
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 13Expansions (Continued from page 13) McArthurGlen has reached all-time highs in its project pipeline. In expansions both underway and planned through 2017, the company is adding 65,500 m2 to eight centers in Austria, Germany, Italy, Nether- lands and the UK. A 9,300-m2 phase 2 will open in 2016 at Designer Outlet Ashford in Kent, England. The addition, which will feature facades of living grasses, vines and flow- ering plants, will be constructed in a por- tion of the 17,000-m2 center’s parking lot. See Channel Check Ashford Designer Outlet, page 18 for more information. Also in the UK, a 4,700-m2 phase 3 will open at Designer Outlet Swindon in summer 2015. The 19,000-m2 enclosed center opened in March 1997 as an adap- tive re-use of the Great Western Railway Station. It Designer Outlet Ashford (concept) was developed at a time when very few greenfield projects received approvals, and the project has since won many awards for revitalizing and saving the historic structure. Swindon’s current retail roster in- cludes Billabong, Charles Tyrwhitt, Fossil, Hugo Boss, Lindt, Nike, Samsonite and Whittard of Chelsea. A 7,000-m2 phase 2 will open in late 2015 at Designer Outlet Neumünster near Hamburg, Germany. The 27,000-m2 center opened in Septem- ber 2012. Tenants include Armani Outlet, Escada, Lacoste, Napapijri, Superdry, Versace and Zegna. Elsewhere on the continent, in 2016 MCG will open a 15,000-m2 phase 4 expansion of 35,000-m2 Designer Outlet Roermond (Netherlands). The 13-year-old center’s tenants include Abro, Benetton, Dolce & Gab- bana, Fred Perry, Kipling, Loro Piana, Michael Kors, Porsche Design, Seidensticker, Tumi and Wolford. A 5,000-m2 phase 5 will open in 2016 at MCG’s 16-year-old Designer Outlet Parndorf near Vienna. Tenants in the 42,000-m2 center include Aigner, Brooks Brothers, Escada, Furla, Högl, Mexx, Oakley, Ulla Popken and Villeroy & Boch. Designer Outlet Swindon A 6,000-m2 phase 4a expansion of Designer Outlet Noventa di Piave will open in 2016. Brands in the 19,000 m2 center, which is near Venice, include Alberto Guardiani, Brioni, Cerruti, Diesel, Frette, Ixos, Les Copains, Moreschi, Primigi, Swarovski, Ugo Colella, Versace and Zadig & Voltaire. Also in 2016 MCG will open an 11,000-m2 phase 5 at Designer Outlet Serraville, between Milan and Genoa. The center opened in September 2000 and now stands at 39,000 m2. Tenants include Asics, Brioni, Canali, Fratelli Rossetti, Guess by Marciano, Kipling, Loro Piana, Patrizia Pepe, Sisley, Triumph and Vans. A 7,500-m2 phase 3 expansion at Designer Out- let La Reggia in the metropolitan Naples market is scheduled to open in 2017. Tenants in the four-year-old, 26,000-m2 center include Adidas, Brums, Cerruti, Elisa- betta Franchi, Foppapedretti, Il Gufo, Luisa Spagnoli, New Balance, Pupa, Tru Trussardi and Valentino. c Designer Outlet Noventa di Piave 14 I n te rnational Ou tle t Journ al Fal l 2014
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Prague‘s First Premium Outlet
31,000 sqm GLA | 190 Stores in 3 Phases | Opening Autumn 2015
90 Minute Catchment 4.5M | Prague Downtown 25 Minutes
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www.thepragueoutlet.comChannel Check
Factory Krakow
wins with locals
The Polish center,
which attracts more
men than women, has
posted huge sales and
footfall gains since
opening in 2011.
B y A MY LAU GHING H OUSE
C o n t r i b uti ng Wr ite r
Stepping out of my taxi in front
of Factory Krakow, about five minutes
from Poland’s Krakow International Air-
port and 20 minutes northwest of the city
center, the first thing I notice about the
center is its sleek design.
All the outlet stores – nearly 100,
sprawled over 22,300 m2 (240,000 sf)
– are in one large building rather than
arranged in the more common village
style with boutiques flanking pedestrian
streets. Given Poland’s frigid winter
weather, harboring retail space under
one roof makes sense. After all, it would
take a die-hard bargain hunter to navi-
gate the shops in snowshoes, no matter
how steep the discounts.
Factory Krakow, which opened in
2011, is one of five Factory centers
that Spanish outlet developer Neinver
operates in Poland, and the only outlet
center in the Malopolska region. It’s also
the company’s sole center incorporating
regular-priced stores – another anomaly Factory Krakow is one of five outlet centers that Neinver has developed in Poland.
Fashion House operates another three in the country.
to the usual outlet model.
The full-priced section, Futura Park, is Another distinction dawns on me as there are more sportswear and menswear
sequestered on a lower level encompass- I stroll the outlet mall’s wide, brightly brands than high-fashion womenswear
ing 20,000 m2 (nearly 215,300 sf). It fea- lit corridors and observe my fellow chains in the center, Kusior said.
tures essentials, including a grocery store, shoppers. In addition to young women The merchandising shows in the
pharmacy, pet store, travel agency and clad in leather jackets, denim skirts and center’s sales: Men’s, women’s and fam-
money exchange alongside shops selling fashionably draped scarves, there seem ily apparel accounts for about one-third
electronics, lingerie, cosmetics, outdoor to be a surprising number of men. of sales, while activewear accounts for
wear, childrenswear and toys. Kusior confirmed my assessment. Un- nearly 25 percent. It’s no surprise that
As Anna Kusior, site-marketing co- like most outlet centers, this destination Nike is the No. 1 store in the center.
ordinator at Factory Krakow, explained, attracts more men than women: 55 ver- For the first six months of 2014,
“The complex is promoted as a place to sus 45 percent. Neinver made no deliber- Factory Krakow experienced a 33
do comprehensive shopping.” ate attempt to entice male shoppers, but percent sales increase and a 10 percent
16 I n te rnational Ou tle t Journ al Fal l 2014Factory Krakow’s sleek, enclosed design encourages shopping in Poland’s frigid winters.
increase in footfall compared to the carry off – or possibly Cher, in one of gypsy-style skirts – clothes that are as
same period of 2013. her giddier moments. hip as they are comfortable.
“In Krakow, sports and fitness clubs A big part of Factory Krakow’s appeal My favorite Polish find is actually a tie
are very popular,” Kusior said. “From comes from such international tenants as between two brands. Ochniik is all about
here, we’re only 100 km (62 miles) to Adidas, Puma, Tommy Hilfiger, Benet- luggage and leather, from handbags and
the highest mountain in Poland. There’s ton, Desigual and Levi’s. The center also messenger bags to jackets and dresses.
skiing in the winter and cycling in the features a number of domestic brands. I’m sorely tempted by a capacious red
summer.” These include an assortment of mens- patent leather purse retailing for $130
Although Factory Krakow draws wear labels, which mainly trend towards ($65 less than the regular cost) and a
shoppers from a 90-minute drive, the suits and ties, with a sprinkling of formal brown cap-sleeved leather dress, a steal
average drive time of shoppers is just and casual attire. Polish men’s brands in at $137 (less than half the original price).
28 minutes. About 19 percent of clients the center include Ewtex, Bytom, Gia- The ultimate bargain is a burnt umber
come from other parts of Europe. With como Conti, Lancerto and Lavard. top with cut out shoulders, priced at
81 percent of the clientele hailing from Polish youth brands include Cropp $98, down from $327.
in and around Krakow, keeping locals Town and House, which remind me a The other Polish label that most
happy is vital. This means incorporating bit of Abercrombie & Fitch, with their impresses me is Simple, whose sil-
amenities like a children’s play center and urban apparel vibe enhanced by pulsat- houettes come from the ’50s and ’60s,
a free co-working area, complete with ing music that throbs over unseen speak- conveniently arranged by color. Think
desks and WiFi. The outlet center also ers. For the slightly older crowd, there’s full skirts ($65, reduced from $98) and
offers shuttle services to the key Krakow Mohito and Reserved. nipped waist dresses ($130, down from
districts of Podgorze, 20 minutes south Factory Krakow also provides a $164). Basically, these are the styles
of the city center, and Nowa Huta, 40 selection of Polish brands devoted Grace Kelly or Audrey Hepburn would
minutes east of central Krakow. exclusively to women. For example, have worn on the silver screen. There’s
There’s even a galleria to inspire Solar features geometric print dresses even a selection of footwear, from clas-
shoppers, Kusior said. On my visit, I and blouses, sleekly tailored jackets and sic pumps to Oxfords in a variety of
find it filled with fashion photography blazers, and colorful, figure-hugging sherbet shades (half price, at $65). c
and one-of-a-kind couture from the knitwear. Unisono, by contrast, offers
Krakow School of Art. The gowns are such free-flowing designs, forgiving of Amy Laughinghouse is a freelance
not for sale, which is a bit of a pity, lumps and bumps, that I briefly wonder writer based in London. You can
but then again, a tutu of silver roses if I’ve wandered into a maternity shop. read more about her travels at www.
may be a style that only Björk could Picture baggy printed t-shirts and long amylaughinghouse.com.
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 17Channel Check
Ashford ready
to razzle-dazzle
Expansion plans for the 14-year-old
center will help the center blossom.
B y M ARIE DRIS COLL
C o n t ri b u t i n g W ri te r
With its eclectic fashion sensibility, from the don-
ning of outrageous hats (it’s the Easter parade every day) and the
weather-appropriate popularity of wellies, gumbies or Hunters, to
the Alexander McQueen-inspired skull accessories and the Vivienne
Westwood plaids, London is a feast for the fashion observer. Three
popular exhibits running concurrently – The Glamour of Italian
Fashion 1945-2014 at the Victoria & Albert Museum, Fashion Rules
at Kensington Palace, and The Fashion World of Jean Paul Gaultier
at the Barbican – provided a more in-depth look at fashion eras and
trends. But truly, there’s nothing like the streets surrounding Covent
Garden and Notting Hill to see a potpourri of individual styles.
Where to buy them, that is the question!
All of London was on sale the first week of July – the hallmark
retail venues of London such as Burberry, Harrod’s and Harvey
Nichols, as well international purveyors of fast fashion like H&M,
Cos and Zara’s – and almost everyone in between. Even Chanel
had last season’s apparel marked down at Heathrow – as if I had
any money left. Truly a shopper’s delight. The streets of London
were thick with tourists and locals, shoppers all, so it came as quite
a surprise that the parking lot at McArthurGlen’s Designer Outlet
Ashford was also full on my visit there, a
sunny Tuesday in July.
The trip is a 37-minute train ride from
London to Ashford International Station
and the rim of the center, which is in
the heartland of Britain’s garden coun-
try, Kent, renowned for its horticultural
gems since Henry VIII. Center manager
David Maddison has taken the intrinsic
local beauty as a theme for Designer
Outlet Ashford and landscaped the
grounds to include seasonal floral bushes
and trees that make a day at the center a
delight for the senses. Even the parking
lots are sprinkled with hanging baskets
of the region’s hallmark blooms. Mad-
dison has successfully lobbied his board
for a fourfold increase in the gardening
and grounds budget; as sales continue to
grow, the landscaping budget will, too.
Designer Outlet Ashford is famous for
its unique tented structure designed by the
Ashford Designer Outlet, located in the heart of Kent, is a 37-minute train ride from renowned architect Sir Richard Rogers,
London. who is also noted for his design work
18 I n te rnational Ou tle t Journ al Fal l 2014on the Pompidou Center in Paris and
the Millennium Dome in London. The
Ashford center is a horseshoe shape
with connected teepees covering the
stores and walkways – good against in-
clement weather and for protecting that
fair English skin when the sun’s shining.
Maddison arrived at Ashford four
years ago (10 years after its 2000
opening) and his goal is to make it the
crown in the McArthurGlen portfolio,
by pruning less desirable brands and
replacing them with the retail magnets
and designer brands that draw shop-
pers. MCG quickly spent £6 million
($9 million) to renew the signature
roof and retain the modern feel with
its shimmering white glow that can be
seen from the train station. McArthurGlen is doubling Designer Outlet Ashford with 80 more stores, including 35
Ashford is a center in flux, certainly luxury brands in a posh setting.
a solid outlet destination, its 182,700 sf hosting 80 or so retail brands flourishing at other McArthurGlen centers.
brands, some as well known as Abercrombie & Fitch, Gap, Le Plans are to double the size of Designer Outlet Ashford by
Creuset, Lindt, Nike and Ralph Lauren (three shops, including the end of 2016, adding an additional 175,000 sf and up to 80
Denim & Supply). Abercrombie & Fitch chose Ashford for its more stores. Of that, a proposed luxury quarter will embrace
first European outlet and its results have beaten expectations about 35 units across 75,000 sf.
since opening in 2013. The center draws from the 7.7 million This trip I got a chance to visit Ted Baker, where for less
people in the 90-minute catchment, and its 3 million annual than $80 I purchased a very English pencil skirt that flared at
visitors are predominantly from this population base. During the the hemline, and for less than $50 a ribbon trimmed cotton
week, housewives arrive in their Land Rovers and shop for casual cardigan. Very reasonable! I ducked into Denim & Supply and
apparel and sports attire then enjoy an open air lunch at Pizza Ex- tried on the wonderful denim jeans and lace-trimmed cotton
press, a trendy London pizzeria that has grown to 400 locations tops, then moved on to Nike were I bought a running jacket
since its 1965 founding. Maddison convinced Pizza Express to in bright fuchsia (this way the traffic sees me!). At Pizza Ex-
open at Ashford, and that chain is beating its plan, too. press I had a fresh salmon salad and iced coffee, great food,
Designer Outlet Ashford isn’t your razzle-dazzle center great service, great shopping, a great day. c
yet, but several factors are in its favor. Close to both Lon-
don and Dover, it is the first Eurostar station for travelers Marie Driscoll, CFA, CEO & Chief Consultant, Driscoll
to the UK from the Continent. And, McArthurGlen is Advisors, is an award-winning retail analyst who focuses
sprucing up the center with a wood, glass and live botani- on apparel brands, retailers and luxury goods. She may be
cal theme to entice the next level of retailers and designer reached at mariedriscoll@yahoo.com.
Designer Outlet Ashford tenants
Abercrombie & Fitch Denim & Supply Ralph Lauren Levis Samsonite
Adidas Ecco Lindt Skechers
Animal Fat Face Links of London Sole Trader
Antler Fiorelli Marks and Spencer Suit Direct
Asics Fossil Molton Brown Sunglass Hut
Bellissimo Fragrance Shop Moss Bros Superdry
Bench Fred Perry Mountain Warehouse T.M. Lewin
Body Shop French Connection Musto Ted Baker
Bose Gap Next The Works
Chapelle Geox Nike Tog 24
Christy Guess Phase Eight Tommy Hilfiger
CK Underwear Hamleys Polo Ralph Lauren Toshiba
Clarks Henri Lloyd Polo Ralph Lauren Childrenswear Trespass
Cotton Traders Jaeger ProCook Vision Express
Crabtree and Evelyn Jeff Banks Radley Watch Station
Crew Clothing Kurt Geiger Reebok Yankee Candle
Crocs Lacoste Reiss
Denby Le Creuset Roman Originals
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 19Advertorial
Center Opening
Outlets come to the city
(and shoppers follow)
A bold makeover in
Bad Münstereifel,
Germany turns the
sleepy center of a
medieval town into
an outlet center.
B y JA M ES M A M M ARELLA
M an ag i n g E d i to r
The ancient cobblestones and
low archways held up well, channeling
approximately 120,000 shoppers through
more than 30 stores and restaurants in
City Outlet Bad Münstereifel in its first
week. The outlet center, which opened
in August, plans to attract 1 million
shoppers each year to a tiny town while
preserving the carefully protected land-
mark status of many of its buildings.
City Outlet Bad Münstereifel com-
prises about 12,000 m2 of the medieval
spa town in the wooded hills 30 km
southwest of Bonn, the former capital
of West Germany.
The city, which is in the far south of
the German state of North Rhine-West-
phalia, welcomes thousands of tourists
every year, especially in the spring and
summer. But more and more, tourists
are adding outlet centers to their travel
agendas, so in 2012 this town of 19,000
City Outlet Bad Münstereifel opened in August with more than 30 new tenants. people brought in Retail Outlet Shopping
City Outlet Bad Münstereifel tenants
Bagatt Deerberg Lego Wear Sterntaler
Bassetti Eat Ants Lindt Chocolate Shop Street One
Blend Esprit Luis Trenker Tapferes Schneiderlein
Bonita Gaastra Marc O’Polo Junior Think!
Brasserie an der Rauschen Garcia Jeans McGregor Tom Tailor
Bugatti Ice Watch Printenhaus Portz Vero Moda
Café T Ichi Puma Wellensteyn
Camel Active Jack & Jones Rasstube/Em Höttchen Zero
Caprice Josef Seibel Robert Ley Outlet Zucchi
Carl Gross Kurhaus/Heino Café Salamander
Cecil Lambert Sanetta
Club of Gents Laura Ashley Home Solid
22 I n te rnational Ou tle t Journ al Fal l 2014GmbH to create, lease, market and manage
City Outlet Bad Münstereifel.
Now outlet brands including Esprit, Josef
Seibel, Lindt Chocolate Shop, Marc O’Polo
Junior, McGregor and Tom Tailor occupy the
town’s narrow lanes and compact buildings.
ROS has been pursuing regulatory approval
for the shops to be open up to 40 Sundays
each year, which would be an improvement
over the city’s initial offer of four Sundays a
year. ROS also has proposed a new parking
facility to augment the city’s existing 10,000
spaces, which often overflows in summer
months with traditional tourist traffic.
The center’s August 14 opening featured
a public concert by Heino, a German folk
music star who has made Bad Münstereifel A former critic of the outlet center, German folk-music star Heino has embraced
the project and performed at the opening.
his adopted hometown. Formerly a critic
of the outlet concept for the town, and agreeing with
some locals who saw a threat to their way of life, Heino
has since embraced City Outlet Bad Münstereifel to the
extent that he has become a tenant: The Heino Café oper-
ates in the Kurhaus, a historical former nursing home that
offers terrace dining amid soothing vistas.
The ROS team, led by managing director Thomas
Reichenauer, has enticed to City Outlet Bad Münstereifel
a diverse range of retailers that encompass youth, contem-
porary, casual, sports, novelty and other classifications. Two
chains – Swiss luxury brand Luis Trenker and Italian shoe
brand Bagatt – opened their first German outlet stores in Designer Outlet Soltau
City Outlet Bad Münstereifel.
ROS, founded in 2011, also manages three other outlet
centers, another in Germany and one each in Switzerland
and Austria:
ROS took on final development duties at Designer
Outlet Soltau (Germany), which opened in August 2012
at 13,500 m2, hosting about 60 brands in a purpose-built
village setting.
A concurrent project was the former Alpenrhein Vil-
lage Outlet Shopping Landquart (Switzerland), which
ROS rebranded in 2012 as Designer Outlet Landquart. An
energetic leasing campaign brought in Puma, Pepe Jeans
and luggage brand Braun Büffel. Enhanced marketing has
led the five-year-old center to back-to-back 25 percent Designer Outlet Landquart
sales gains in 2013 and 2014.
The fourth component of its portfolio is Fashion
Outlet Parndorf (Austria), a conversion of two former
centers: Fashion Outlet Villaggio Parndorf and Galerien
Parndorf. Sited immediately adjacent to McArthurGlen
Designer Outlet Parndorf at a major highway convergence
near the frontiers of Slovakia and Hungary, the region
draws considerable tourism each year by virtue of both its
abundance of historic castles and significance as a Central
European haven for wildlife. Parndorf is also less than 30
km from the main Vienna airport.
To differentiate from its neighbors at Parndorf, ROS
is concentrating on the activewear/youth-oriented tenant
categories. Retailers new to the center include Claire’s, Juicy
Couture, Lafuma, Quiksilver and Ray Ban. c Fashion Outlet Parndorf
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 23Guest Column
Lessons from across the pond
B y B r endon O’Re i lly from prevalent “offers of the
week” in store, to click and col-
It has been some time lect in store, to online sales from
since I took a long look at the outlet stores in outlet centers.
outlet sector in the U.S., and I Our landlords have been looking
must say, I was pleasantly sur- at the logistics of payment (who
prised by what I observed when gets credit for the sale), distribu-
I was in New York in September. tion (getting the goods to the
The mature outlet marketplace customer) and which retailers can
can teach those of us on this side display goods on center websites.
of the pond a few lessons – with- I see real potential for growth,
out any doubt, the outlet sector but there is one main difference
in the U.S. is on fire! with our U.S. colleagues: The
I stopped by the ICSC/VRN U.S. sector grasps that the great
Fall Outlet Leasing & Market- experience outlets deliver to the
ing Convention to see what was consumer will not be cannibalized
going on. Nearly 400 delegates, Brendon O’Reilly is the managing by online retail.
including more than 130 retailers, director of Fashion House Group, the devel- We sell apparel, shoes and acces-
were there for the educational oper and operator of outlet centers in Poland, sories. We don’t depend on books,
sessions, awards presentations Romania and Russia. CDs, DVDs or large screen TVs.
and deal making. The mood We deal in real people, real value
throughout the convention was abso- pean banks take a similar view as their shopping and real brands. Our custom-
lutely buoyant. U.S. colleagues. I would also like to see ers want to come to our centers to feel
For several years the U.S. marketplace lenders better educated on some of the the fabrics, try on the shoes and hold the
was a region of low growth and little peculiarities of the outlet sector. For jewelry more than they want to make an
development of new outlet concepts. this to happen, developers have a re- online purchase. The Internet is growing
How things have changed! I can’t wait sponsibility to spend time explaining to for sure, mainly as a pre-shopping re-
to see Europe taking up some of the the banking sector across Europe what search tool, but it’s way behind traditional
new approaches, particularly in finance. a great investment opportunity they’re retail growth when you look at the value.
The U.S./Canada outlet sector has missing. By the way, ICSC has some interesting
more than 45 projects in the pipeline I have seen so many projects fall by statistics on the growth of Internet sales
over the next two to three years, and the wayside due to pre-leasing criteria versus the growth of brick-and-mortar
that’s building on an existing outlet- that is more suited to high-street retail sales in the U.S. :
center base of 205 schemes. Actually, than to what the outlet sector can actu- l In 2013, Internet sales grew 17
an amazing 32 outlet centers have ally deliver. We have all witnessed banks percent for an added $38 billion, but
opened in the U.S. and Canada in the asking for centers to be 90 percent brick-and-mortar sales, which grew just
last three years. leased before construction begins! I 3.5 percent, added another $144 million.
So this amount of planned activity is look forward to seeing the U.S. funds, l 87 percent of 2013 sales were in
significant, but how is it possible given who are now totally comfortable with shopping centers.
the current economic climate? outlet development and investment, l In-store sales accounted for 94 per-
Funding! The institutional mar- come to Europe. cent of all retail sales in 2013.
ketplace in the U.S. sees the outlet Operationally, our U.S. colleagues We need to adopt and adapt to the
sector as the “hot ticket” in property are looking at omni channel retailing online experience, but we need to use it
development. We in the industry have in great detail. On our side of the to generate incremental sales. We can-
understood this for many years, of pond there is a lag among the ways not continue to see online retailing as a
course. When you know how to “do that shoppers can make purchases, threat. In the U.S., landlords and retail-
outlets” in a professional, expert ers are investing in omni channel
way, the properties assume a risk
profile similar to – or even better “The great experience with passion and enthusiasm.
I urge all of our European outlet
than – high street retail develop-
ment, but with a much stronger outlets deliver to the friends to take a trip to the U.S.,
have a look around and learn from
potential upside through turn-
over rents and upward-only rent consumer will not be the masters. It’s well worth the
time. One of the reasons I love this
reviews.
After years of talking to many cannibalized by online industry is that everyone is happy
to share ideas and spend time
lenders about the outlet sector, it
would be great to see the Euro- retail.” discussing new developments and
initiatives. c
24 I n te rnational Ou tle t Journ al Fal l 2014ICSC European
Outlet Conference
24 March 2015 10
CELEBRATING
YEARS
Business Design Centre, London, United Kingdom
In association with:
SAVE THE DATE
ICSC Global Partner
ICSC European Partners
Gold Sponsor
FOR MORE INFORMATION PLEASE CALL +44 20 7976 3100 OR EMAIL ICSC.EUROPE@ICSC.ORG
WWW.ICSC.ORG/2015EOS #ICSCEUROPELeasing News
leasing Activity McArthurGlen
nCheshire Oaks Designer Outlet, UK
Hines Newly opened: Jack Wolfskin, Yankee Candle, Yo Sushi.
n Outlet Village Belaya Dacha, Moscow – phase 2 nSwindon Designer Outlet, UK
Leased: Ash, Atlantic, Benetton, Calipso, Calvin Newly opened: Folli Follie, Winser London.
Klein, Clarks, Colveri, Damat, Dino Chizari, Elena
Shipilova, Elite Lingerie, Giovanni Boticelli, Hugo Neinver
Boss, Kanz Shoes, Karen Millen, Lee, Magiya Detstva, nVila do Conde The Style Outlets, Porto, Portugal
Mavi, Napapijri, Nice Connection, Oasis Warehouse, Newly opened: Abercrombie & Fitch, Michael Kors.
Luxury Optika, Petek, Pissero, Strellson, Super Step, nZweibrücken The Style Outlets, Germany
The North Face, Tom Tailor, Triumph, Van Laak, Vans, Newly opened: Abercrombie & Fitch, Michael Kors.
Williams & Oliver, Wrangler.
n Outlet Village Pulkovo, Saint Petersburg, Russia – phase 1 Peel Holdings
Leased: Adidas, Albione, Aldo, Bronnitskiy Uvelir, nGloucester Quays Outlet Centre, UK
Cacharel, Calipso, Calvin Klein, Damat, Dino Ricci, Newly opened: All Saints, Crew Clothing, TGI Fridays,
Ekonica, Gant, Henderson, Hugo Boss, Imperiya The Gym, The North Face.
Sumok, Incanto, Just Couture, Kanzler, Lacoste, Le
Creuset, Lee Cooper, Levi’s, Lovini, LTB Jeans, Mango, Quintain
Mavi, Meucci, Michael Kors, Moreschi, New Balance, nLondon Designer Outlet, Wembley, UK
Nike, Ochnik, Oktika, Paper Shop, Petek, Puma, Newly opened: Bench, Christy, New Balance, Replay.
Quiksilver, Ralf Ringer, Ramsey, Salomon, Samsonite,
Superstep, Timberland, Tommy Hilfiger, Tsum (Gucci, Resolution Property/Stable
Ralph Lauren, Dolce & Gabbana), US Polo, Villeroy & nRosada Fashion Outlet, Roosendal, Netherlands
Boch. Leased: Delsey Paris.
26 I n te rnational Ou tle t Journ al Fal l 2014Michael Kors, A&E boost Wolfsburg center
Less than a year after the
opening of the second phase of
Designer Outlets Wolfsburg, Outlet
Centres International continues to
add premium tenants to its project.
Calvin Klein, Rene Lezard, Tim-
berland and Vans were set to open
in October, and Polo Ralph Lauren
Childrens Outlet opened in Sep-
tember. Earlier this year Michael
Kors opened its first outlet store in
northern Germany there, and in the
spring, when Abercrombie & Fitch
opened, 300 people were lined up
waiting for the doors to open. Since
then, Melvin & Hamilton, Watch
Station, Claire’s, United Colors of When Abercrombie & Fitch opened at Designer Outlets Wolfsburg in April, more
Benetton, O’Neill, Hannah White, than 300 shoppers were lined up to enter the store.
Salamander, and Clarks have also “We’ve not only added a number of Designer Outlets Wolfsburg, which
joined the line-up. brands, but we have broadened our opened in December 2007, is consid-
“This year we have significantly selection, as well, and Michael Kors ered to be Germany’s first purpose-
developed our brand portfolio,” said and A&E in particular have given the built outlet center in a city center.
Stephan Schäfer, managing direc- center great impetus in terms of visitor The 16,000-m2 center attracts nearly
tor of Designer Outlets Wolfsburg. numbers and sales figures.” 2 million shoppers annually.
The easiest way to reach over 15 million Russian shoppers within the EU.
The crown jewel of outlet shopping on the EU-Russian border.
Now leasing.
Zsar.fi
Fall 2 0 1 4 I nt e r nat i o na l O u t l e t J o ur n a l 27Channel Check
A good center gets better
ing sales of €8,250 (US$10,600) per m2..
Expanding and enhancing the Still, as a specialist in operating non-outlet shopping centers,
already-successful Homebush CFX’s decision to buy into the outlet business in 2010 raised
more than a few eyebrows. But company management saw a
DFO in Sydney, Australia, has big upside in the purchase. With its professional management,
brought even better performance marketing know-how and relationships with mainstream retail-
ers, CFX believed it could rejig the tenant mix and raise the
and footfall to the center. performance standards of all four outlet centers.
CFX’s argument was supported by precedent. As Simon’s
B y MICHAEL BAKER acquisition of Chelsea in 2004 and Prime Outlets in 2010
Co n tr i b uti ng Wr ite r showed, the synergies between mall and factory outlet opera-
tions can be a driver of outlet growth.
The newly expanded and renovated Homebush Expanded and renovated by CFX during 2012-13, Home-
factory outlet center in Sydney, Australia, a stone’s-throw from bush now stands at 26,380 m2 and both foot traffic and sales
Olympic Park where the 2000 Games were hosted, is itself a are up sharply. Even the vaunted pre-expansion specialty
success story of Olympian proportions. Located literally about store productivity level has been exceeded, vindicating CFX’s
as far away as you can get from the birthplace of modern outlet belief that despite the center’s impressive numbers there was
centers, Homebush shows just how well the outlet concept trav- always going to be room for improvement.
els. Like most of the factory outlet centers in Australia though, it “DFO Homebush now has one of the strongest collec-
is far from being a blunt replication of the U.S. model – its physi- tions of retailers in Sydney,” said Michael Gorman, CFX
cal and merchandising differences are as evident as its similarities. deputy CEO and chief investment officer. “The caliber of
Homebush – or Homebush DFO as it is properly known the retailers and the amenities we’ve added by redeveloping
(DFO being an acronym for Direct Factory Outlets) – is one the center are driving materially higher sales and traffic.”
of four outlet centers acquired in 2010 by shopping cen- The redevelopment boosted the store count from 86 on
ter operator CFS Retail Property Trust Group (CFX). The a single level to 126 stores on two levels. The center now
Sydney-based developer owns 28 retail properties including features a mix of leading global luxury retailers and popular
Chadstone, Australia’s biggest shopping center by sales with mainstream brands, a new 475-seat food court, upgraded par-
an annual volume of €1billion (US$1.3 billion). ent’s rooms and bathrooms and 500 more parking spaces, the
Homebush DFO opened just before the Sydney Olympics latter fitted out with a state-of-the-art parking guidance system.
in May 2000. At the time of its purchase by CFX 10 years
later, it was still a modestly sized but highly productive center, Homemaker concept
its 17,500 m2 pumping out annual sales of €117 million The expansion also introduced on the lower level a ‘home-
maker’ precinct, meaning a collection of big-box home furni-
(US$150.8 million). The center’s specialty stores were generat-
ture, home furnishings and digital
products stores. This dual factory
outlet/homemaker concept would
struggle in the U.S. or Canada where
outlet centers are usually distant
from residential areas. The concept
tends to work in Australia because
outlet centers are in or near subur-
ban residential areas. Homebush
itself is less than 15 kilometers from
downtown Sydney.
If there is a jewel in Homebush’s
crown though, it has to be the new
upscale brands precinct that oc-
cupies approximately 15 percent of
total center GLA and sets it apart
from other Australian factory outlet
centers, which are focused almost
exclusively on popular mid-market
brands. The high-end tenants at
Homebush, which include Burberry,
New upscale brands at Homebush DFO include Burberry, Coach, Zegna and Hugo Boss. Coach, Ermenegildo Zegna and
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