ONLINE SPECIAL | MARCH 2022 - ACROSS Magazine
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ONLINE SPECIAL | MARCH 2022 across-magazine.com OUT UPDATE LET INTERVIEW MAGDUS CEO CAROLINE LAMY EXPLAINS WHAT SHOPPING CENTERS CAN LEARN FROM OUTLETS ACROSS RETAIL TALK FOOD ANCHORS - THE ACTUALLY "SAFE" ANCHOR FOR SHOPPING CENTERS MARCH 31, 4PM E-COMMERCE REPORT THE IMPORTANT ROLE OF E-COMMERCE FOR SOCIETY AND THE ECONOMY
DEAR READER,
I am pleased to present to you the latest ACROSS Online Special.
We have consciously prepared this ACROSS Online Special for outlets. The
reasons for this are manifold. Designer Outlet is without a doubt one of the most
active units of the retail real estate sector. Our reports on the large number of
expansions, new leases, staff news, etc. prove this.
Additionally, we believe outlet centers set important trends that the entire place-
IMAGE: ACROSS
making industry will take in consideration. This asset class made it through the
pandemic relatively well. On the one hand, because they were in fact able to
implement many requirements more easily, they could compensate for the losses
in their business easier than other asset classes. But even before the pandemic
they set the right course. One example of this is the traditional close cooperation
and connection between landlords and tenants in the outlet area.
In addition, the economic and social developments are pointing in a clear direc-
tion. Rising inflation and geopolitical uncertainties continue to boost the outlet
trend. In the future, the principle of good quality at low prices will influence
consumers even more.
After a lot of talks and with all the feedback from industry experts, it makes us
very optimistic to see how many people like to visit retail locations, such as
well-managed designer outlets. They offer the possibility to shop extensively and
also feel comfortable there. We strongly believe that other retail locations can
also learn a lot from these positive examples.
I hope you enjoy reading our informative Outlet Update.
Yours sincerely ,
Anne-Kathrin Velten
Editor in Chief ACROSS Magazine
2 ACROSS ONLINE SPECIAL | MARCH 2022
THE OUTLET CENTER
BOOM WILL GO ON
Outlet centers have been one of the few bright spots, especially for fashion
retail over recent months, as the coronavirus pandemic ravaged the sector.
Economic indicators suggest that the success will continue.
IMAGE: PREMIER OUTLET BUDAPEST, ROS
Attractive outdoor spaces will be a key advantage for outlets in the future.
Largely, out of town and open air, outlet centers have be- NEW FRAMEWORK CONDITIONS
come even more attractive as fashion shopping destinations
during the pandemic. But even before Covid, outlet malls Since March 2020 times have changed. In the last two
have been incredibly successful because of their value prop- years, for consumers, the shopping experience combines
osition: brand names and even luxury items at a lower price. basically three elements: safety, product, and price. While
The success of the outlet sector was driven by three key fun- sales and visitor numbers were understandably down in
damentals: a unique and close relationship with its brands, 2019, customers came back with a stronger, more purpose-
taking advantage of the increasing importance of tourism ful intent to purchase. According to PWC, already in the sec-
retail, and a strong emphasis on making outlet shopping a
complete ‘day-out’ experience for the entire family, as VIA
Outlets-CEO Otto Ambagtsheer stated before the pandemic.
3 ACROSS ONLINE SPECIAL | MARCH 2022
ond half of 2020 the average spend per visitor in UK-out-
lets was up by 15 % than in the previous year.
Neinver's results are an example of how well outlets have
IMAGE: MALLORCA FASHION OUTLET, VIA OUTLETS
come through the crisis. The company is the leading outlet
operator in Spain and Poland, and the second-largest op-
erator in Europe. It has recently announced a steady recov-
ery at its outlet business in 2021, particularly during the
second half of the year as restrictions began to ease.
The company recorded over €909 million in brand sales
across its 17-centre outlet portfolio, a 24% like-for-like in-
crease on 2020 and welcomed more than 35 million visitors The European outlet centers did surprisingly well to outbalance the loss due to
closed boarders and travel restrictions with local shoppers.
over the course of the year, producing a 16% like-for-like in-
crease. In H2 2021, footfall stood at just 88% of the equiva-
lent pre-pandemic period in 2019, whereas brand sales
across the outlet portfolio slightly outperformed 2019 levels
thanks to a strong recovery of sales in Q3 (+3% on Q3 2019),
confirming the improved momentum. The fact that retail 2. FOCUS ON NEW VISITOR MIX
turnover has produced like-for-like growth during this period,
despite lower footfall, further demonstrates the high sales Outlet centers used to attract tourists. But the European
conversion rates and increase in basket size. “Reaching pre- outlet centers did surprisingly well to outbalance the loss
COVID levels during the second half of the year fills us with due to closed boarders and travel restrictions with local
optimism, and it is a clear indication of the strength of our shoppers. Especially domestic tourism played an important
business”, said Carlos González, Neinver Managing Director. role in the summer holidays – in both 2020 and 2021. Fur-
thermore, the sport sector was in high demand during the
Overall, more than 150 outlet stores opened across Europe pandemic. Also, home and leisure brands were well trad-
only between March and November in 2020, designer out- ed. This in combination with an ongoing inflation, and oth-
let consultant Ken Gunn Consulting reported. This com- er trends, attracted locals to shop at outlets.
pares with around 100 new openings in the previous year.
3. A CLOSER BOND BETWEEN RETAILERS AND
The key findings for outlets in Covid-times and beyond are OPERATORS
the following:
From the beginning of this crisis, outlet center manage-
1. MAKE THE OPEN-AIR NATURE YOUR ADVANTAGE ments have listened to tenants’ concerns, requests, and
have helped tenants’ liquidity by optimizing costs and work-
Especially during the lookdowns people have missed social ing to provide them with different relief agreements. There-
interactions and the experience of physical shopping. They fore, the long-lasting relationships model between retailers
were eager to shop, but still concerned about health safe- and operators in outlets became even stronger.
ty issues. Outlet centers also offer free parking, as well as
more outdoor space, which helped customers to feel saf- The rental and lease relationship between designer outlet
er. Research showed that more than 50% of the consum- landlords and retailers and brands has long been seen as
ers pre-plan their shopping via digital channels since 2020. a strength of the outlet model, and the major operators
But the biggest bonus for outlet centers is their open-air
nature. People feel safer and more confident. The demand
for open spaces will continue. Therefore, attractive outdoor
spaces will be a key advantage in the future.
4 ACROSS ONLINE SPECIAL | MARCH 2022
have been proactive during the crisis. For instance, McAr- store in pandemic times a lot. Because a normal sale in the
thurGlen has launched a rent-relief package to support its main store would lead to a higher number of customers, the
brand partners. Already in the first months of the pandem- number of employees would also have to be increased. The
ic the group waived all minimum base rent, turnover-based company statement said: “The concept store has been de-
rent, and marketing charges in all its centers. signed to support higher levels of social distancing by al-
lowing more space for customers, enabling a wider prod-
4. HAVE YOUR EXPANSIONARY POLICY READY uct selection of new-season products in the Knightsbridge
store, as well as supporting the business in retailing exist-
The tenant mix is constantly changing, and remerchandis- ing stock.” With the existing stock surplus, outlets can be
ing is one of the pillars of every outlet company’s strategy, an optimal distribution channel to reduce inventories, and
alongside remodeling and remarketing. Furthermore, there thence outlets are also seeing interest among retailers that
is no doubt that there is still an increased demand for out- have not been present in the outlet sector at all.
let space. Companies like Via offer additional space in the
form of pop-up stores, either where they are already pres- FUTURE OF OUTLETS
ent, or in new centers or regions, which also provides a
unique opportunity to test new markets. The rising inflation is the key factor of why industry experts
predict an ongoing rise of success for outlet centers. The
5. CREATE NEW SHOP MODELS rising costs of goods will continue and with less money in
the pocket the idea of “spending less, but getting high qual-
The British luxury department store Harrods provides an ity” will be even more appealing. Also, geopolitical risks will
example of what alternative outlet concepts can look like. keep customers away from investing into other channels
In the summer of last year, it opened an outlet store in like tourism. The fact that lots of new centers are moving
Westfield London to relocate seasonal stock that could not closer to urban centers are attracting retailers, who previ-
be sold due to the coronavirus crisis. According to Harrods, ously avoided “discounts”, focused centers will also lead to
this new branch helps to organize the operating flagship the success in the future.
5 ACROSS ONLINE SPECIAL | MARCH 2022
10 YEARS.
3 LETTERS.
1 GOAL:
Best performance
for Retail
Properties
Since a decade, our experienced and
coordinated MEC team combines
consulting, services and individual
solutions for the planning, management
and optimization of retail real estate of
all kinds – under one roof and from
a single source.
mec-cm.com
“OUTLET STORES
ARE SIGNIFICANTLY
PROFITABLE”
Outlet centers have performed better than shopping centers since the end of
lockdowns, says Caroline Lamy, CEO of Magdus and the CL Outlet Consulting
company. ACROSS spoke with her about the reasons behind this and what
operators of shopping centers can learn from outlets.
ACROSS: WHICH ECONOMIC TRENDS ARE CURRENTLY
CONTRIBUTING TO THE SUCCESS OF OUTLETS?
CAROLINE LAMY: After several lockdown phases, full price
and outlet retailers had a lot of unsold stocks to sell and lots
of discount marketing campaigns have been made since the
reopening of the outlet centers in order to attract custom-
ers, who have been more cautious about good bargains, es-
pecially those who suffered of partial or full unemployment.
The “revenge shopping” phenomenon has also been a good
fact contributing to the success of the outlet centers, which
IMAGE: MAGDUS
are mostly open air shopping centers, being this a good
factor in this pandemic situation to reassure safe shopping
experiences for customers.
Caroline Lamy
ACROSS: WHAT TRENDS DO YOU CURRENTLY SEE CEO of Magdus and the CL Outlet Consulting company
IN OUTLETS THEMSELVES?
LAMY: Outlet centers have performed better than shopping
centers since the end of lockdowns. Despite the lack of in-
ternational tourists, local clients have been more numerous TION BETWEEN TENANTS AND LANDLORDS. WHAT
thanks to marketing campaigns being more focused on IS THIS COLLABORATION ABOUT? WHAT MAKES
local scales. Some developers have welcomed several new THE COOPERATION SPECIAL?
outlet retailers, including digital native brands, who have LAMY: According to the outlet retailers interviewed for the
entered the outlet industry to sell their unsold products and new “Outlet Centre Performance Report Europe" (OCPRE)
to gain a new customers base. survey conducted by ecostra and Magdus at the end of
ACROSS: THE SUCCESS OF OUTLETS IN THE
PANDEMIC IS ALSO DUE TO THE CLOSE COOPERA-
7 ACROSS ONLINE SPECIAL | MARCH 2022
outlet experience is better according to customers, so out-
let developers have mainly chosen this type of centers for
many years now. Recently and in the future, developers will
2021, about 94 % of the outlet tenants experienced a drop be focused on getting sustainability certificates, which are
in sales compared to the last Corona-free year 2019, only 6 also good marketing tools.
% managed to generate sales that were up to 25 % higher
than the comparable year 2019, which did not yet know any ACROSS WHAT CHANGES HAVE THERE BEEN IN GAS-
shop closures. Almost 28 % of tenants had to settle for less TRONOMY OVER THE PAST TWO YEARS?
than half of the 2019 turnover. There was corresponding LAMY: The food and beverage offer have been relatively
pressure on landlords. Almost two-thirds of tenants (approx. poor in the past, in traditional shopping and outlet centers.
64 %) - and thus again significantly more than in the previ- The shopping experience in outlet centers is mainly a per-
ous year (approx. 57 %) - suspended their rent payments at fect “day out shopping destination” so the F&B segment has
least temporarily. But apparently it was still possible to find been enriched over the past two years.
amicable solutions with the landlords, as only just under 8
% of the outlet tenants reported to be involved in a legal dis- ACROSS WHERE ARE THE EFFORTS GENERALLY GO-
pute with the landlord because of rent defaults. ING IN THE GASTRONOMY SECTOR? WHICH OTHER
PROVIDERS WILL BE ADDED?
ACROSS: HOW DOES THIS COOPERATION DIFFER LAMY: Unlike many shopping centers, which usually have
FROM A COOPERATION IN SHOPPING CENTERS, supermarket or hypermarket anchors, big F&B players were
FOR EXAMPLE? not interested in the outlet industry in the past, because
LAMY: Outlet developers such as La Compagnie de Phals- outlet centers have no supermarket or hypermarkets an-
bourg in France offered three months of rent to its outlet re- chors. These are often closed during the evening and the
tailers at the very beginning of the pandemic situation in customers flows during the week were not strong enough
2020. The relationship between outlet retailers and outlet to encourage these big F&B players to open restaurants
developers is closer than in the shopping center industry, it there; however, this point of view has been changing over
is a small market. Also, a significant part of outlet retailers, the past five years. Some outlet schemes have very attrac-
outlet developers, and landlord businesses are based on a tive food courts, and new F&B incomers have entered the
turnover basis. So, when retailers are in trouble economi- outlet market.
cally, especially during lockdowns (no turnover registered),
it is the entire outlet industry which is suffering. The solidar- ACROSS: WHICH LOCATIONS WILL BE PARTICULARLY
ity is a need for every outlet player. EXCITING IN THE NEXT TEN YEARS? ARE OUTLETS
STILL MOVING CLOSER TO CITIES?
ACROSS: ACCORDING TO WHAT CRITERIA ARE LAMY: Regarding the pandemic situation, the expansion eu-
TENANTS CURRENTLY SELECTED BASED ON YOUR phoria in the outlet market has slowed down. Brand manu-
OBSERVATIONS? facturers have surveyed the new "Outlet Centre Perfor-
LAMY: The outlet developers are looking for historic tenants mance Report Europe" (OCPRE) intended to open an
and new tenants to attract new customers. Several digital average of 2.6 new outlet stores and to close only 0.9
native brands have entered the outlet market over the past stores, so that is a further consolidation of the outlets net-
two years. Any retailers should not be underestimated be- work. However, since the peak of 2018 with an average of
cause outlet centers need to answer to all customer expec- approx. 3.7 new openings, the momentum has slowed no-
tations (gender, age). ticeably. When expanding, the German market is at the top
of the list regarding destinations for most brand manufac-
ACROSS: THE TOPIC "OPEN AIR" HAS DEVELOPED turers. In Germany, 52% of all respondents are looking for
FROM A CORONA TREND TO A SUSTAINABLE CON- outlet space. Obviously also due to a lack of suitable sites,
CEPT. HOW WILL OUTLET OPERATORS APPROACH however, the figure has dropped significantly compared to
THIS TOPIC IN THE FUTURE? the previous year (approx. 65 %). There is now a strong in-
LAMY: Even before the pandemic situation, economic stud- crease interest in France, Poland, Spain, and Italy as target
ies have showed that „open air“ outlet centers are more ec-
onomically performant than closed outlet centers, which is
mostly constituting the old outlet generation. The “open air”
8 ACROSS ONLINE SPECIAL | MARCH 2022
countries, all of which already have well-developed outlet changed, with the profitability of online shops now rated
markets and a corresponding supply of floorspace. slightly better. In the latest survey cycle, the profitability of
these two distribution channels is now rated as largely iden-
Outlets have been moving closer to cities to benefit from tical. Thus, the pendulum seems to be swinging back in the
good first and second catchment areas, which is a good direction of the outlets.
strategy, especially in this economic period with the rising
of fuel prices. Nevertheless, outlet centers need to keep ACROSS: IN YOUR OPINION, WHAT ARE THREE POINTS
their geographic distances with city centers to avoid the risk THAT OPERATORS OF SHOPPING CENTERS OR RETAIL
of cannibalization with full prices tenants. PARKS CAN LEARN FROM OUTLET OPERATORS?
LAMY: My points are:
ACROSS: WHAT ROLE WILL E-COMMERCE PLAY IN • Rents with a significant part of turnover basis and
OUTLETS IN THE FUTURE? amicable solutions for retailers facing troubles since
LAMY: According to the new "Outlet Centre Performance the pandemic situation
Report Europe" (OCPRE) survey, outlet stores continue to • Pop-up stores offer to gain new tenants and to renew
be significantly more profitable for brand manufacturers the retail offers of the schemes.
than their own brand stores on the cities high streets. Here, • Some outlet developers have attractive marketplaces
the survey results of OCPRE have never shown a different (like La Compagnie de Phalsbourg for The Village near
picture over all these years. However, a clear reassessment Lyon, Holy AG for OutletCity Metzingen) which have
can be seen for online shops. We stated: Until 2019, outlet been a great tool during lockdowns to maintain a good
stores were clearly the most profitable sales channel for turnover, gain new customers, and retain the historic
brands. With the 2020 Covid pandemic, this picture has ones.
9 ACROSS ONLINE SPECIAL | MARCH 2022
ACROSS RETAIL TALKS ///
MARCH 31, 4PM (CET), 2022
/// ONLINE
Food Anchor – The actually "safe" anchor for shopping centers and retail parks?
Register here!
They are considered the “winning format” of the pandemic; • “System relevance” – or who can and may offer what
they have increased the perception of consumers and are and how?
currently an essential component of a successful retail mix • Food Anchors and multi-channeling – How does it work?
for centers: Large-area food markets. • What examples of innovative concepts are there?
• Can food anchors and retail parks be combined with
IN OUR NEXT RETAIL TALK WE WANT TO TAKE A entertainment and leisure in a sensible way?
CLOSER LOOK AT THESE TOPICS:
• Does a shopping center need a food anchor; or vice
versa: does the food anchor need shopping centers?
• What do food anchors mean for the profitability of a Click here for web view
location’s success (frequency, profitability, mix of
offers)?
10 ACROSS ONLINE SPECIAL | MARCH 2022Welas Park, Wels, Austria
From convenience ...
Connect with our
investment spectrum
As one of Europe’s leading investment managers for retail properties,
Union Investment is committed to further accelerate the international
expansion of the retail portfolio – from grocery-anchored retail parks
and convenience retail to market-dominant shopping destinations.
We welcome your ideas – let‘s do business!
union-investment.de/realestate
... to experience
Puerto Venecia, Zaragoza, SpainCURRENT BRAND
TRENDS IN OUTLETS
Without a doubt, outlets are an outperforming retail format. Therefore, it is a
very dynamic sector. Dominic Brady, Partner at KLM Real Estate, explains the
current trends outlet operators are facing from brands and consumers.
Across Europe there are several new developments under-
way with the UK benefitting from proposed new schemes
in Grantham, Scotch Corner in northern England and the
Cotswold outlet in historic Gloucesteshire. These sites have
been identified by operators as pockets of space that are
perceived to be under-supplied by the current outlet provi-
sion. All developments appear to be gaining traction which
will add to an already established and mature outlet provi-
sion in the UK. Whilst developing an outlet center in an es-
tablished market can make it easier for occupiers from a
supply chain perspective, competition means it can be quite
tricky for the outlet to carve out its own niche so it will be
interesting to see how they all progress to completion.
IMAGE: KLM
NEW DEVELOPMENTS AND EXTENSIONS
Dominic Brady specializes in Outlet Leasing, Retailer Services, and Shopping
In mainland Europe there are several exciting developments Center Leasing both in the UK and Europe.
which will enhance the premium outlet offer in their respec-
tive regions. The relative success of these schemes will like-
ly be dependent on both demographic factors and the qual-
ity of the operator launching the scheme (and their
relationships with the key brands). There is a definite trend ‘first-generation’ outlet centers which may have suffered
towards developing outlets to benefit from economic tour- from a period of under-investment. Many retailers like to de-
ism with developments in Slovenia and Finland close to the velop relationships with specific occupiers and this can be
border of neighboring countries. This makes a compelling key to making a successful new scheme. Scandinavia is
economic case for the shopper although it can be challeng- considered by many brands to be an outlet “white area”
ing to persuade a brand to establish a new trading entity in with a shortage of high quality opportunities against a back-
a region it does not currently have a presence. drop of growing full price representation. The new scheme
The risk for existing landlords, is that where new, high-qual-
ity schemes are developed, it is to the detriment of existing
12 ACROSS ONLINE SPECIAL | MARCH 2022IMAGE: KLM
Braintree: Braintree Village gives home to over 75 premium brands.
planned in Malmo will help address this shortage in supply spective is to provide the additional accommodation whilst
although we feel that there may still be opportunities for maintaining a strong sales density. On sites where outlets
other high quality schemes within this region. are confined in space and can’t readily extend the footprint,
they can face a toss up between increasing the footprint of
ONLINE VS PHYSICAL SPACE FROM CONSUMER existing occupiers and bringing several new occupiers to
PERSPECTIVE the scheme. This is a constant battle!
During the pandemic there has been an accelerated shift PARTICULARLY POPULAR BRANDS IN OUTLET
towards online retailing through necessity as much as any-
thing else. When physical retail reopened the bounce back Outlet shoppers tend to be brand savvy by nature as the de-
was significant and this was predominantly at the expense cision-making process for visiting an outlet is often made
of online sales. There is no substitute for seeing and feeling based on the brand line up available. Some outlets have a
a product and the advantage outlets offer in this instance slant towards a particular sector which may be determined
is the leisure experience provided by visiting a good outlet by demographic or geographic factors – outlets near nation-
center. Shoppers make the decision to visit an outlet with al parks for instance may over-index on outdoors wear
the express intention of buying product and I do not see a whilst urban centers may lean more towards fashion and
situation where this changes so long as the quality of the accessories so popularity of brands will differ from outlet to
brands remains high! outlet.
PROGRESSIVE BRANDS SPORTSWEAR
In terms of new entrants and progressive brands in the out- From a sportswear perspective however, NIKE and Adidas
let sector, Adidas have a large scale up size requirement are constantly vying for the top spot with shoppers whilst
which they are on the way with across Europe as do PVH
who are looking for a much larger Calvin Klein and Tommy
Hilfiger stores. The challenge from an outlet operator per-
13 ACROSS ONLINE SPECIAL | MARCH 2022the likes of New Balance, Puma, Asics and Under Armour
also perform very well. We are seeing several new entrants
in this sector with Castore making big moves in Q4 21 and
Q1 22 and we expect this subsector to continue to grow
in the coming months and years as dress codes relax and
athleisure crosses over into work wear.
HOMEWARE
During the pandemic the homeware sector has seen sig-
nificant growth with probably the largest Year-on-Year
growth seen in this sector, albeit from a lower starting
point. Classic brands such as Le Creuset, Zwilling, and Be-
deck 1951 are all popular and have performed well whilst
Procook have continued their agressive expansion across
IMAGE: KLM
outlet and have now opened a full price flagship in central
London.
Honfleur: The Honfleur Normandy Outlet can be found at the
MIXED FASHION foot of the Pont de Normandie
For mixed fashion, Polo Ralph Lauren remains a huge draw,
as do Calvin Klein and Tommy Hilfiger. GAP was a big loss
to this sector due in part to their strength in childrenswear let as a “gateway“ into their brand. With the success of
but this represents a big opportunity for existing brands outlets over the past 12 months we expect there to be sev-
and new entrants to step up and provide this offer. eral new entrants into this sector as the markets around
Europe open up once again.
As outlets increasingly target a younger shopper than has
historically been associated with the sector, iconic brands GASTRONOMY
with a focus on youth culture such as Carharrt and Cham-
pion have also become more popular. Food and beverage provision is vitally important with a par-
ticular focus on operators who can provide an all-day of-
LUXURY fer to recharge a flagging shopper. Where operators focus
primarily on evening-trade, they are likely to suffer if there
This sector retracted from physical retail assets to being is no surrounding late-night leisure uses due to shorter
predominatly online during the pandemic. This has re- trading hours an outlet offers. To get the best out of these
mained the case until Q1 2022 when we have suddenly operators, landlords need to work to provide alternative
witnessed an uptick in demand from luxury brands who leisure uses to support both daytime and evening trade.
have been dormant for nearly 2 years. Gunwharf Quays for instance offers bowling, a cinema, and
a casino to ensure strong footfall throughout the day and
Though the luxury presence in outlets is relatively small, into the evening and night time. The result is an unusually
the power of these brands is huge which in turn helps to large collection of 30 very successful restaurants and bars
drive footfall from the furthest catchments. If they can be which work hand in hand with the retail offer whilst also
attracted, this demographic has an increased dwell time offering a compelling evening leisure destination.
and therefore spending power. The highest quality outlet
assets resonate with the values of these brands and form
part of an important retail channel, many of which use out-
14 ACROSS ONLINE SPECIAL | MARCH 2022SUSTAINABILITY ANGLES ON OUTLETS As sustainability has become an increasingly important consideration for both occupiers and investors, it has be- come necessary for landlords to make sure assets have a clear ESG strategy. From a brand perspective, how green an outlet is, has become an important part of their deci- sion making process when looking at new openings, whilst investors are increasingly factoring it into their valuation analysis. There are many measures landlords can take to improve sustainability and for those who can adopt them early and roll them out across their outlets efficiently, the potential opportunities are significant. One such change has been implemented in Braintree Village (UK) where Landsec are focused on reducing waste by diverting 100% of their waste from landfill and have partnered with an onsite coffee re- tailer on a re-usable cup scheme. This is a small change but many small changes across their assets can add up to help make a big change to the environment. 15 ACROSS ONLINE SPECIAL | MARCH 2022
ROS FOCUSES ON EXPERIENTIAL
SHOPPING, FLAGSHIP OUTLET
STORES, AND DOMESTIC TOURISM
The outlet destinations managed by ROS Retail Outlet Shopping performed very
well during the pandemic. Nevertheless, Co-Founder and Managing Director
Thomas Reichenauer has to adapt to changing conditions and new future topics.
ACROSS: IT HAS BEEN SAID FOR YEARS THAT
OUTLETS ARE CRISIS-PROOF – WHAT DO YOU THINK
OF THIS STATEMENT AFTER TWO YEARS OF THIS
PANDEMIC?
THOMAS REICHENAUER: Outlet centers have again prov-
en to be a strong niche asset class in the retail real estate
sector. Of course, we also suffered from lockdowns. Never-
theless, we benefited from revenge shopping later on. We
saw a pent-up demand for shopping, which is reflected in
an increased average purchase value (APV). This trend con-
tinues. The main winners are sports, casual fashion, linge-
IMAGE: ROS
rie/underwear, beauty, home, and the premium segment.
Classic women's and men's ready-to-wear have suffered the
most due to changes in shopping behaviors, although these Thomas Reichenauer
fashion brands are now responding with casualization and Co-Founder and Managing Director of ROS
are regaining importance. In general, however, it can be said
that, from the customer's point of view, outlets are becom-
ing more attractive in uncertain times and with increasing
inflation.
tries with the highest vaccination rate, Portugal already saw
ACROSS: TOURISM WAS A BIG DRIVER BEFORE THE an increase in international tourism in the fall of 2021. Over-
PANDEMIC. HOW HAVE ROS LOCATIONS LIKE all, it can be stated that all locations managed by ROS have
ALGARVE EVOLVED SINCE SPRING 2020? benefited from revenge shopping and domestic tourism.
REICHENAUER: In general, we are glad that our ROS sites
have strong catchment areas. However, a distinction must ACROSS: IN YOUR EXPERIENCE, HOW IMPORTANT ARE
be made here. It always depends on the individual location, DOMESTIC SHOPPERS FOR THE OUTLET SEGMENT?
whether they are heavily dependent on international tourism REICHENAUER: We expect domestic tourism to continue to
or benefit from the currently booming trend of domestic tour- play a major role this year due to these uncertain times and
ism. Designer Outlet Algarve, as an example, strategically fo- rising inflation. According to the statement of the World
cused on domestic tourism at an early stage and was thus
able to successfully compensate for the decline of interna-
tional tourism in the summer of 2021. As one of the EU coun-
16 ACROSS ONLINE SPECIAL | MARCH 2022Tourism Organization in January 2022 "tourism arrivals
around the world are not expected to return to their pre-
pandemic levels until 2024 at the earliest".
ACROSS: WHAT DOES THIS MEAN FOR THE BRAND
MIX IN YOUR OUTLETS? IT IS REPEATEDLY SAID THAT
THERE IS GREATER DIFFERENTIATION BETWEEN
OUTLETS WITH A CLEAR LUXURY FOCUS AND
OUTLETS TARGETING THE MID-PRICE SEGMENT.
CAN YOU CONFIRM THIS?
REICHENAUER: At present, this is the case, although the
lines between them are blurred. We are convinced that a
mix of luxury/premium and fashion & lifestyle in the mid-
price segment works very well. The pandemic has shown
that pure luxury outlets are heavily dependent on interna-
tional tourism and are currently having a harder time. In
times of increasing e-commerce, experiential shopping is
on the rise. Successful outlets therefore rely on a good
combination of price segments, new categories, mixed-use
with integrated food courts, and leisure offers, as well as
adaptation to other new consumer trends. In any case, it
remains exciting to see in which direction new outlet gen-
IMAGE: ROS
erations will evolve.
ACROSS: HOW DO YOU APPROACH THE TREND AND Designer Outlet Algarve strategically focused on domestic tourism.
DESIRE TOWARDS MORE OPEN-AIR AREAS AT SHOP-
PING LOCATIONS? WHAT ROLE DOES THIS TREND
PLAY IN YOUR MEDIUM AND LONG-TERM PLANNING?
REICHENAUER: The open-air shopping experience at our
predominantly village-style ROS outlet locations is definitely metropolitan areas are becoming more and more impor-
an added value that customers have greatly appreciated in tant for international anchor tenants. This trend has been
uncertain times of rising incidences during the pandemic. reinforced by the pandemic. In this context, we are very
However, even outlet malls have also performed very well pleased that these strong outlet locations are increasingly
compared to traditional shopping centers. In the medium used by anchor tenants for image building in recent years,
and long term, the village style will remain the preferred ar- as they expand and convert their stores into so-called flag-
chitectural type of outlet center throughout Europe. ship outlet stores.
ACROSS: DO RECENT DEVELOPMENTS HAVE ANY ACROSS: ONE OF THE OUTLETS' FACTORS FOR
IMPACT ON YOUR CHOICES FOR CURRENT AND SUCCESS IS A CLOSE RELATIONSHIP BETWEEN
FUTURE LOCATIONS? WILL THE TREND OF MOVING TENANTS AND LANDLORDS. IN WHAT WAY DID YOU
OUTLETS CLOSER TO CITIES CONTINUE? SUPPORT YOUR TENANTS DURING THE PANDEMIC?
REICHENAUER: The mobility of catchment areas and men- REICHENAUER: Brand partnerships are vitally important
talities are decisive factors here. In Western Europe, mobil- for success in the European outlet market. ROS pursues a
ity is declining, and sustainability also plays a key role. Car stakeholder approach. Centrally, we developed a #safe-
sharing options and electric mobility are not yet as devel-
oped as one would hope. In general, however, the strength
of local, 30-minute catchments, i.e. proximity to cities and
17 ACROSS ONLINE SPECIAL | MARCH 2022THE MOST IMPORTANT LESSONS SHOPPING
CENTER OPERATORS CAN LEARN FROM OUTLETS
ACCORDING TO THOMAS REICHENAUER:
Strong Brand Partnerships
Creating mutual trust based on partnerships and win-
win situations between brand partners, owners and op-
erators.
Retail Excellence
Outlets have retail management systems.
In conventional shopping centers, influence on the ten-
ants’ retail business stops at the doorstep. Outlet oper-
ators’ approach is active retail management, a give &
take mentality, so that all parties involved benefit from
the location in the long term.
Destination Marketing
Outlet centers are pioneers when it comes to customer
loyalty, digital marketing, and social media implementa-
tion. They accompanied regular customers as well as
fans and followers better through the pandemic and
consistently maintained contact. In addition, outlet cen-
ters are driving the development of 'phygital' shopping
experiences and support their brand partners’ om-
IMAGE: ROS
nichannel strategies.
Outlet centers become active members of their local Stakeholder Approach
communities at an early stage. Outlet centers become active members of their local
communities at an early stage and cultivate active
360-degree relationship management with all key stake-
holders.
shopping campaign early on, which also relied heavily on
open-air shopping. Each location then adapted it to their Best Customer Services
respective retail restrictions in consultation with local au- Outlet centers have better customer service – from tour-
thorities. We supported brand partners with sanitizers and ism/center information, kids and center entertainment,
dispensers, plexiglass partitions, floor stickers, customer VIP customer specials, VIP lounges, events, tax-free
navigation systems, as well as virtual shopping options. Vir- shopping service points, umbrellas (villages), to offering
tual shopping enables customers to contact stores direct- regional products.
ly and make their purchases online, by phone, or on social
media. In this regard, it is worth mentioning that outlets Sustainable Facility Management
have relied on e-mail marketing, CRM, and social media Outlet centers are measuring themselves against their
from early on. European counterparts and have been early adopters of
sustainable center operations (Environmental Social Gov-
ACROSS: WHAT DO YOU EMPHASIZE IN YOUR ernance), and health & safety standards are also higher.
COLLABORATION AND CONTRACTS WITH TENANTS?
REICHENAUER: We clearly focus on a relationship of trust
based on partnerships and win-win situations for owners,
operators, and brand partners.
18 ACROSS ONLINE SPECIAL | MARCH 2022OPENING IN
2023
www.westfield-hamburg.de www.unibail-rodamco-westfield.de“A CONSTANTLY EVOLVING
MIX OF INTERNATIONAL AND
LOCAL BRANDS IS THE KEY”
Customers come to outlets to spend a great day out, states VIA Outlets CEO
Otto Ambagtsheer. This consumer’s desire also got VIA Outlets through the
pandemic well. In this ACROSS-interview, Ambagtsheer talks about current
challenges and future plans.
ACROSS: SOME OF YOUR LOCATIONS WERE
PARTICULARLY VISITED BY TOURISTS IN PRE-
PANDEMIC TIMES. WHAT HAS CHANGED IN THOSE
LOCATIONS OVER THE PAST 24 MONTHS?
OTTO AMBAGTSHEER: International tourists are an impor-
tant target group for many of our centers, but luckily, when
that visitor group were grounded in 2020, the drop in inter-
national tourism was largely compensated for by the rise of
staycations and people travelling within their own country.
We are now seeing the first signs of international travelling
IMAGE: VIA OUTLETS
picking up again and have already welcomed both interna-
tional group Travelers and free independent travellers (FITs)
back to some of our centers again.
Otto Ambagtsheer
ACROSS: HOW DO THE NEEDS OF DOMESTIC SHOP- CEO of VIA Outlets
PERS DIFFER FROM THOSE OF TOURIST SHOPPERS?
AMBAGTSHEER: The key for both local and international
tourists is having a good, constantly evolving mix of interna-
tional and local brands to maintain a sense of newness to
the centers, but services differ slightly depending on where reau Veritas to obtain a ‘Safer Shopping’ certification for all
the guests are coming from. In the last two years we have our centers. We also increased our communication in areas
focused less on thinks like international travelling picking up beyond our normal catchment area, whilst continuing to in-
again and have already welcomed both international group vest in improvements for the center offerings, such as creat-
travelers and free independent travelers (FITs) back to some ing a brand mix that creates interest and eventually drives
of our centers again. traffic to the centers. Thanks to our loyalty program Fashion
Club, we were able to keep communicating with our most
ACROSS: WHAT ACTIONS WERE NECESSARY TO loyal guests even when centers were closed, as well as of-
ATTRACT THE DOMESTIC SHOPPER TO THESE fering special perks to attract them back to the centers once
LOCATIONS? they reopened.
AMBAGTSHEER: The first priority was to offer guests a safe
shopping environment, which is why we partnered with Bu-
20 ACROSS ONLINE SPECIAL | MARCH 2022IMAGE: VIA OUTLETS
Beyond discounts, customers are attracted to outlets because they are the one-stop shopping solutions.
break. Outlets are a complete package that really play into
the modern customer’s preferences.
ACROSS: AT THE MOMENT WHICH TENANT-MIXES ACROSS: WHAT ROLE DOES THE OUTDOOR TOPIC
WORK BEST IN YOUR OUTLETS? PLAY IN THE PLANNING OF NEW AND EXISTING
AMBAGTSHEER: We feel it’s always important to combine OUTLETS?
strong, internationally renowned brands with beautiful local AMBAGTSHEER: Regardless of if a centre is open-air or en-
brands, but equally to have a brand mix that is tailored to closed, the most important thing is to ensure that each out-
each specific market – for example having more outdoor let has an in-center experience that excites and engages
brands in Switzerland and the Nordics versus in Iberia. We guests’ senses – be that with the help of contemporary art
also see that pop-up stores for up-and-coming brands that installations and window displays or landscaping that cre-
don’t have a permanent presence in the outlet space work ates memorable experiences hence making guests want to
very well – not only does this create a sense of newness, return time and time again.
but it also drives a new type of guest to the center. An ex-
ample of this is our Re.Love pop-up concept, which we ACROSS: WHAT ARE THE CURRENT TRENDS
launched last year as part of our Beyond Sustainable strat- REGARDING GASTRONOMY?
egy, where we give existing and new brand partners a AMBAGTSHEER: In order to create a surprise and delight
chance to showcase their sustainable collections and prod- element in our center, besides our premium restaurants, VIA
ucts as well as pre-loved fashion, which we see that our Outlets offers also a range of food trucks that cater to spe-
guests are increasingly attracted to. cific themes, events and preferences. Consumers are in-
creasingly climate-aware, and this is evident in both fashion
ACROSS: BEYOND DISCOUNT SHOPPING: WHAT IS and food, with guests being more conscious of what goes
MOST IMPORTANT FOR VISITORS AT THE MOMENT? on their plates and asking questions about how food is pro-
AMBAGTSHEER: Beyond discounts, customers are attract- duced, where the ingredients come from and what happens
ed to outlets because they are one-stop shopping solutions to food surplus. We see that alongside the big chains, a
where guests know they will have a great day out. After var- range of smaller operators are entering the market to cater
ious periods of lockdowns and confinement over the last to more niche customer preferences, such as vegan diets
two years, we see that people are eager to go to safe, espe- and healthy juices.
cially open-air locations where they can spend time, stroll
and stop on every corner to enjoy a nice lunch or coffee
21 ACROSS ONLINE SPECIAL | MARCH 2022REALM’S REVIEW: SIX BIG
TRENDS IMPACTING THE
UK OUTLET SECTOR BY DAN MASON, MANAGING DIRECTOR (REALM)
In the fast-moving industry that retail is, changes in consumer behaviors are the
most important factor informing us about the way it works. A true understanding
of this is essential to enabling us to adapt our destinations and ensure they are
fit-for-purpose to deliver positive financial returns to all our stakeholders, our
brands, our landlords, and those potential investors looking to enter the market.
As one of the leading outlet operators in the UK, we have
been at the coalface of this ever-evolving retail subsector as
it has enjoyed exponential growth in the last decade. Here,
we look at the top six sector changes.
PRICE-CONSCIOUS CONSUMERISM
The retail sector-over, there is increased interest from con-
sumers in making purchases based upon the expected life-
IMAGE: REALM
line of the product. Instead of opting for fast fashion and bar-
gain purchasing. This is definitely not driving customers away
from outlets, though. Instead, it is making them more attrac- Dan Mason
tive. The outlet shopper is typically brand literate, they care Co Founder and Managing Director at Realm Ltd
about the brand and want to be seen wearing it. Yet, as they
are becoming more conscious in their spending choices,
they are recognizing that outlets are able to combine the la-
bel with quality at an affordable “inflation-proof” price. This urged customers to consider quality over quantity, and
indeed boosted returns with average spend increasing by 20
SUSTAINABLE STEWARDSHIP % against 2019 and pre-pandemic figures. We also recently
hosted our inaugural EcoFest at Dalton Park to highlight
In addition to outlets being seen as a solution to buying bet- practical small changes we can all take to reduce our envi-
ter, we are actively working to make our physical portfolio ronmental impact and combat the climate crisis. In addition
more sustainable. As an operator, we have a responsibility to inviting a host of regional stalls selling eco-friendly prod-
to reduce our environmental impact and are rolling out a se- ucts, we arranged guided walks around the surrounding 55
ries of Environmental, Social, and Governance (ESG) strate- acre of parkland as well as a host of other marketing initia-
gies across our portfolio. At Livingston Designer Outlet, in tives. This event period produced meaningful results to the
place of the traditional sensationalist approach to Black Fri-
day, we ran with a more thought-provoking campaign called
BuyWise Black Friday.
22 ACROSS ONLINE SPECIAL | MARCH 2022bottom line of our brand partners, with like-for-like sales vs
2019 up by 17% and footfall vs 2019 increasing by 14.5%.
OUTLET OPPORTUNITY
We are seeing increasing confidence from retailers in the
outlet model – with more and more brands looking to get in-
volved in the sector. We provide a range of opportunities
from permanent shell units for a retailer to fit out according
IMAGE: REALM
to its own identity, white box units for brands to take space
at pace with reduced fit-out costs, and in some cases, the
occasional pop-up to allow a brand to trial a location. More The Livingston Designer Outlet in Scotland covers approximately 27,870 sq m.
often than not, we find they quickly convert to a permanent
lease. Our data-led approach also allows us to work togeth-
er with our brand partners and collaborate over what sort of
space or location could work best.
able to inform our retailers on what works best and where,
DATA DRIVEN RESULTS something we believe to be another reason for the increase
in interest in testing the outlet model – it is truly a partner-
Linking to the above, an essential element of our operating ship and not just a landlord and tenant transaction.
model is our focus on the turnover lease structure and the
genuine partnership it creates between a landlord and the INCREASING INVESTOR INTEREST
brand partners. Whilst this is a prevalent model in Europe,
the deal structure has only recently been growing in popu- Outlets have become a particularly popular investment as-
larity in the UK full price market. Outlets, on the other hand, set class in recent years. Investors recognize the true value
have been utilizing the turnover rent partnerships for years, they can provide, with the data transparency with brands, the
and enjoying the hands-on approach to asset management appeal of the turnover lease structure underpinned by sus-
that the ‘of the moment’ data capture provides. tainable base rents, low vacancy rates, and great consumer
demand. Investors also recognize the importance of the spe-
In a fast-changing market – like we have all had to navigate cialist and active management required to drive the returns.
in the last two years – this has been essential to our success. We are increasingly working with outlet investors, providing
In the collation and analysis of the data we have access to, detailed consultancy and asset management advice to help
as part of our turnover lease agreements, we are able to con- inform their market choices and support their acquisitions.
stantly evolve our schemes to bring them in line with what This further expands our remit as a specialist outlet opera-
our customers want. We are also able to inform our retailers tor with the ability to provide special insight into investors’
of behavioral trends, which in turn enable these retailers to decision making.
keep up and maximize sales.
Overall, it’s fair to say our market has seen some of the big-
LOCATION, LOCATION, LOCATION gest changes in the wider retail sector in recent years. As
outlets have matured, they have cemented their reputation
We are also able to look at our data and form conclusions as profitable sales channels. In addition to this, outlets con-
through a macro lens, make comparisons based upon geo- tinue to evolve by embracing emerging trends, and realign-
graphical locations, and advise our brand partners accord- ing to modern behaviors and desires. Above all, this creates
ingly. What works in one region, doesn’t necessarily work in opportunities for customers, retailers, and investors, which
another, and we often have open discussions with our retail- we are delighted to be a part of.
ers about what brands, stock package, and offers may work
better in one location over another. In knowing this, we are
23 ACROSS ONLINE SPECIAL | MARCH 2022VIAOUTLETS.COM DISCOVER 11 PREMIUM FASHION OUTLETS IN EUROPE'S MOST EXCITING DESTINATIONS
OUTLET CENTER
MARKET STRONGHOLD
The Polish retail market, like other European countries has been one of the most
impacted sectors by the pandemic. Nevertheless, the recovery process is ongo-
ing and outlet centers turned out to be vastly resilient to the market turmoil.
Paulina Brzeszkiewicz-Kuczyńska, Research & Data Manager at Avison Young,
takes a closer look at the Polish outlet market – a market that can be perceived
as representative of the European market.
Outlet centers are present on the Polish retail market since
2002, when the first Factory Ursus was opened on the
edge of Warsaw. Over the years, outlet centers have devel-
oped all over the country, generally on the suburbs of met-
ropolitan areas and regional cities. The total outlet center
stock in Poland amounts to 260,000 sq. m. Presently, their
share in large-scale retail facilities is around 2%.
The outlet format gained popularity despite large supply of
traditional shopping centers operating in Poland due to its
IMAGE: AVISON
offer, characterized by prices of 30% to even 70% lower
than in regular stores. Outlet centers attract customers
from wide regions; the average catchment area (impact
Paulina Brzeszkiewicz-Kuczyńska
zone) is estimated to be at one or even one-and-a-half-hour Research and Data Manager at Avison Young.
drive by car.
TRENDS BEFORE THE PANDEMIC
Before 2020, the most visible retail trends in Poland were Outlet centers however remained somewhat outside the
the development of the gastronomy and leisure offer in big main trends shaping the Polish retail market. Due to dis-
shopping galleries, which resulted in ongoing polarization count prices and assortment, the outlet offer did not com-
between small, convenience-based retail schemes dedicat- pete with e-commerce directly. As purchases in outlets are
ed to basic, purpose purchases and leisure centers, where planned in advance and with purpose, they are not a
people spend their free time. Local and convenience shop- straight alternative for shopping centers, which attract cus-
ping trend was on the rise. Chains were focusing on omni- tomers for spontaneous visits. Outlet centers have already
channel retailing to strengthen the brand’s presence online
and to integrate all existing sales channels including brick-
and-mortar stores.
25 ACROSS ONLINE SPECIAL | MARCH 2022IMAGE: NEINVER
Over the years, outlet centers have developed all over Poland.
proved their resilience, as they kept good results even af- ly influenced by the pandemic and related restrictions. Lei-
ter introducing the Sunday trading ban in 2018. sure tenants became present also in regional retail parks
(e.g., trampoline parks, skate parks, fitness, etc.). As far as
CHANGES DUE TO THE PANDEMIC gastronomy offer is concerned, it is intensively developing
in mixed-use projects, very often in the form of food halls.
After the COVID-19 outbreak, the convenience and local Good examples can be found in Browary Warszawskie or
shopping trend increased. People stayed at home and ex- Fabryka Norblina in Warsaw. However, food courts in shop-
plored their neighborhood also in the retail offer aspect. ping centers are being refurbished and in prime shopping
Moreover, the conversion rates increased, i.e., people vis- centers now they function as consistent food zones with
it shopping centers less often, but they do larger purchas- modern designs. In terms of leisure, new amusement parks
es. Along with the convenience and local trends, the most are being developed in central Poland. Presently, Majaland
intensively developing retail facilities in Poland are current- located in the east from Warsaw is under construction. In
ly retail parks and convenience centers, with basic offers Rzgów (L⁄ ódź Agglomeration) Mandoria Park was opened in
dedicated to quick, every-day shopping. summer 2021.
During pandemic, the e-commerce share in total retail Currently, we are witnessing an oversaturation of shopping
sales increased due to several lockdowns. At the beginning centers in the Polish market. Due to COVID-19 pandemic,
of 2020, the e-commerce share stood at almost 6% and projects that had some problems and disadvantages be-
reached the highest level of nearly 12% in April 2020. The fore, became even more problematic and finally were
share of online trade has been fluctuating depending on re- closed, many old-fashioned attached malls (anchored by
strictions and the number of COVID-infected people. hypermarket) are converted to retail parks or DIY stores. In
the face of the rising e-commerce share, retail schemes try
Therefore, the development of leisure and gastronomy of- to adjust to demanding customers.
fer in shopping centers in Poland slowed down, additional-
26 ACROSS ONLINE SPECIAL | MARCH 2022OUTLET CENTERS’ MARKET CHARACTERISTICS
Over the years, the outlet center market has become ma-
ture, with 15 outlet centers operating in Poland as of March
2022. Outlet centers accommodate more and more premi-
um brands, like in Western Europe. Due to the outlet mar-
ket majority, some previously planned investments were
put on-hold, e.g., in Bydgoszcz or in Rumia (Tri-City). Two
outlet centers previously planned in Kraków were consoli-
IMAGE: NEINVER
date to one investment named Designer Outlet Kraków with
a GLA of 23,000 sq. m due to the limited city potential for
new outlet facilities. The newest transformation was seen Polish customers became more price-sensitive during the pandemic,
in Białystok, where Outlet Białystok was converted to so the discount offer addressed their needs.
Wysockiego Retail Park.
Despite the COVID-19 pandemic, outlet centers kept strong
and customers became more price-sensitive, so the dis-
count offer addressed their needs. Outlet centers were an Polish costumers nowadays put higher attention to prices,
ideal space for retailers to sell the stock from unsold fash- what favors the expansion of so called “value retailers”.
ion collections during lockdowns as well as to operate pop- Those tenants are currently intensively developing their sta-
up stores. tionary stores. They are present both in shopping galleries,
retail parks and small, convenience centers. Among major
THE GENERAL MINDSET OF CONSUMERS value brands should be mentioned Pepco, Action, Dealz,
KiK or TEDI. Following the off-price trend, the Polish chain
The last months were shaped by the pandemic. However, Half-Price by CCC group started a dynamic expansion in
consumer trends observed before 2020, like local and con- 2021 and now operates a chain of over 40 stores, also
venience shopping, gained popularity and were strength- abroad. On the other hand, the sharing economy trend has
ened among Polish customers. Among major consumer intensified, and this is reflected in an increasing number of
trends, following GfK research, there are increasing shop- second-hand clothing stores (also online), car sharing,
ping patriotism and locality, concern for common interest, clothes rental etc., being in line with sustainability and the
supporting local business and ecological practices. zero-waste approach.
27 ACROSS ONLINE SPECIAL | MARCH 2022WE KEEP OUR FOCUS ON YOUR RETAIL REAL ESTATE. iMallinvest becomes am ba s – Your retail real estate ambassador. www.ambasrealestate.com
OUTLETS: MEETING THE
EVER-EVOLVING CUSTOMER
EXPERIENCE
The European outlet industry has responded positively to the unprecedented
challenges and continued setbacks thrown at it by Covid-19. The bounce back in
trading performance that followed last years’ lockdowns and restrictions proves
just that. NEINVER shows this in an exemplary manner. BY JOAN ROURAS, NEINVER
At NEINVER, we experienced steady recovery at our out-
let business in 2021, particularly during the second half of
the year as restrictions began to ease. In fact, during this
period, total sales across our outlet portfolio slightly out-
performed 2019 levels. Given the challenging landscape,
the outlet model appeals to both consumers and retailers
alike.
A FLEXIBLE APPROACH
IMAGE: NEINVER
In 2021, the leasing activity of our portfolio remained strong
and we saw brands turning to the outlet channel to sell Joan Rouras
their overstock. Some even gained the confidence to make Head of Leasing and Retail
their debut in the outlet business, and others even chal-
lenged themselves to open their first physical stores. For
some brands, the outlet format is an excellent opportunity
to engage and acquire a new customer. An example of this Outlet leasing terms and conditions are particularly rele-
are the pop-up formats, which allow to test new concepts vant in the current retail climate as they allow more flexi-
and constantly improve the offering at our centers, while bility and shorter lease terms contracts, and the turnover
also supporting brands on their short-term seasonal needs lease structure allows retailers to benefit from a reduced
or helping them test new markets. However, some firms starting rent. Brands can test new locations at consider-
have become more cautious when it comes to their expan- ably less risk and adapt to changing market conditions.
sion plans, both in the full-price and the outlet channels, What is more, the outlet industry is a clear-cut example of
with global logistics and supply chains adding unpredict- the importance of operators and tenants talking the same
ability and flux, and we have seen this affecting some of our language and aligning their interests. Outlet leasing struc-
centers. As brand partners, we have been helping them to tures have much greater built-in value: working together by
find bespoke solutions to their stock needs. Strong man- sharing data, expertise, and rewards; this undoubtedly in-
agement has been instrumental in maintaining occupancy
and attracting higher quality brands amid this rapidly evolv-
ing environment.
29 ACROSS ONLINE SPECIAL | MARCH 2022You can also read
