INTERNATIONAL OUTLETS – Revolutionising The Outlet Sector

The outlet sector is a unique one, one that has been hit particularly hard by the travel bans and restrictions across the world that was caused because of the severity and spread of Covid-19. However, because of the nature of the sector, it also has the ability to bounce back in ways the traditional retail sector cannot. In the pages that follow, RLI will take a closer look at a selection of outlet schemes that highlight that the outlet industry may have suffered, but it will also make a comeback.

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According to a recent report published by ecostra, in partnership with the French research institute, Magdus, Bicester Village, The Village and Las Rozas Village, have been named the top three best performing outlet centres in Europe and all are Coniq clients. Coniq is the Total Customer Engagement Company for growth minded shopping malls, outlets, and retail brands and has been serving outlets since 2014, establishing a reputation for delivering quick and tangible business value by enabling retail destinations to understand, influence and engage shoppers across physical and digital channels and touchpoints. The company recently launched IQ Connect, a new total Geo-Loyalty app that significantly lowers the cost and time to generate retail sales. Of the top 20 outlet retail destinations listed in the prestigious report, over three quarters (16) of them are owned by long-time Coniq clients. Using the company’s innovative ‘Total Customer Engagement and Loyalty Platform’ they have been successfully delivering remarkable retail experiences for millions of shoppers every year, that in turn drive sales for their retail tenants.

Due to their nature of being largely out of town and open air, outlet centres and destinations have become more attractive shopping destinations for the general public during the pandemic and this may continue when the worst of the pandemic has passed.

According to an article by Isabella Fish on Drapers entitled ‘How outlet centres came in from the cold’ since the onset of the pandemic mountains of clothes have been piling up in stores, distribution centres, warehouses and shipping containers during the months of regional, national and international lockdowns. Excess stock and reduced demand have meant physical and online outlets have become a vital channel for fashion retailers, allowing them to sell end-of-line products and unsold stock at discounted prices.

While outlet centres like all aspects of retail have felt the force of the coronavirus, the business model is somewhat sturdier when it comes to handling changes in the market. Whilst no company or sector is by no means out of the woods yet, there is a growing sense of optimism about the rest of 2021 within the industry and this can be shown through the raft of recent centre and brand launches and those due to open not just in Europe but across the world. We will give you just a selection of these below…

Empire Outlets by developers BFC Partners opened in phases between April 2019 and early 2020, with Nordstrom Rack – one of the shopping centre’s major anchors – launching on 4 July. Empire Outlets is now New York City’s premier outdoor shopping and dining centre. With its picture-perfect views of lower Manhattan, a lush landscaped plaza with tranquil fountains, and access to some of the best deals, Empire Outlets is unlike any other shopping destination in the city, and is just steps from the Staten Island Ferry. The project hosts approximately 100 shops of the finest, brands, an extensive array of waterfront food and beverage concepts and a 190-room hotel.

Florentia Village, China’s leading brand of luxury designer outlets under the Italian real estate development group RDM, celebrated its opening in Chongqing, the second Florentia Village in Southwest China after Chengdu back in February. Florentia Village Chongqing is the first international outlet brand in the city and the seventh Florentia Village outlet location, following the brand’s counterparts in Tianjin, Shanghai, Guangzhou, Hong Kong, Wuhan, and Chengdu. The total construction area is over 60,000sq m and expected to accommodate more than 100 brand stores. In addition to being a one-stop destination for luxury shopping aficionados, Florentia Village outlet is also conveniently located for tourists traveling with children. A mere 45-minute drive from downtown Chongqing and the airport, and a 30-minute drive from multiple tourist attractions, a family can easily plan a trip to the area. In addition, the outlet will launch a new jungle-themed Family Entertainment Center with over 1,700sq m of space.

Opened in June of 2020, Siam Premium Outlets Bangkok is the first Premium Outlet® centre in Thailand developed by the Siam Piwat Simon joint venture. The centre is positioned within a 15-minute drive from Bangkok’s Suvarnabhumi Airport, which served over 65 million travellers last year, and a 45-minute drive from central Bangkok, with a metro area population of over 14 million. The opened-air outlet centre is located on a 72-acre parcel with over 450,000sq ft of retail, food, beverage and open event space. The centre consists of 136 units that are strategically positioned for great visibility in a proven race track design format for an efficient flow of shoppers. Attention was provided to create the necessary customer experiences beyond shopping with a generous 12,000sq ft centre court with “Maze” water fountain feature, 5,000sq ft outdoor bird nested design kid playground and 6,000sq ft sunken amphitheatre with four metre high water fall feature as a back drop.

As the first outlet developed at the crossroads of Europe and Asia, Tbilisi Outlet Village is set to be the number one outlet in Eastern Europe. Located close to Georgia’s 1.2 million population capital, it will ultimately include 110 units spread across 20,000sq m GLA. It has been designed by L35, Europe’s leading outlet architects who were also behind La Roca and Las Rozas Villages in Spain. It is being developed by Georgian Outlets & Resort Group, led by Guram Tsanava and Sandro Kordzakhia, with The Outlet Resource Group (TORG) leading on development, leasing and future management. Opening in 2021, it will offer an unrivalled selection of international designer and mainstream brands mixed with a set of local Georgian designer labels, catering to both domestic shoppers and tourists. 50 per cent of customers are expected from the four neighbouring countries Azerbaijan, Armenia, Russia and Turkey.

Designed by Bernabad Arquitectura SLP and developed by Pikolin Group & GPA, the La Torre Outlet Zaragoza opened its doors on 22 October last year. The new premium factory outlet village is located between Barcelona and Madrid and is the new fashion and lifestyle shopping destination, combining convenience retail with a Bauhaus DIY store, a food court and an outlet village in a unique way. La Torre Outlet Zaragoza hosts more than 60 designer, fashion and lifestyle brands on a gross lettable area of 13,500sq m. Local and international tourists can enjoy the premium factory outlet village at the former Pikolin factory site with the historic tower, one of the landmarks of Zaragoza. Customers visit the destination not merely for shoppping, but also for an opportunity for recreation and spending quality time with their family. 2,800 parking places are free of charge at the outlet.

VIA Outlets, which owns and operates a portfolio of eleven premium fashion outlets in Europe, continues to weather the Covid-19 storm. While some centres are currently closed due to local restrictions, the trend for its centres that are still open is that they are outperforming both their local markets and their own pre-pandemic figures. Having partnered with Bureau Veritas last year to create a ‘Safer Shopping’ certification, the entire VIA Outlets’ portfolio is certified – meaning it offers guests and brand partners alike the safest possible experience, even during current conditions. VIA Outlets also continues implementing its 3 R’s strategy of remarketing, remerchandising and remodelling. Last year, it not only undertook over 100 remodels across its portfolio including major works in Zweibrücken Fashion Outlet, Germany – it also saw over 120 new brand signings, including 15 entirely new brands such as American Eagle, which opened its very first European outlets in Fashion Arena Prague Outlet and Landquart Fashion Outlet in Switzerland respectively.

Amsterdam The Style Outlets opened its doors on 26 November last year as the only outlet centre in the Greater Amsterdam region. Developed by NEINVER and Nuveen Real Estate, it offers a well-blended international and national retail offer of over 100 units across its 19,000sq of GLA, with some brands debuting for the first time in the Dutch outlet market. Beyond its commercial mix, the centre offers a full range of services and 1,000sq m of GLA are dedicated to the leisure areas, restaurants with outdoor seating and walkways. It is the first outlet development in the Randstad area, one of the wealthiest and most densely populated regions of Europe with 12 million people living in a 90 minutes’ drive.

One Nation Paris can be found in the commercial zone of Plaisir-Les Clayes in the western Suburbs of Paris. It Is situated 30 minutes from Paris and 10 minutes from the Palace of Versailles. One Nation Paris is the largest outlet shopping centre in France dedicated to fashion and lifestyle brands: women, men, sports, children, shoes & accessories, home & interior design. One Nation Paris offers reductions of between 30 and 70 per cent on over 400 top brands in comparison with traditional retail prices. On-site, guests will find a range of exclusive, high-end restaurants and gourmet snacking options where you can take a moment to unwind during their shopping.

The newest edition to developer FASHION HOUSE Group’s portfolio, FASHION HOUSE Outlet Centre Pallady in Bucharest will open in summer 2021. Situated near the A2 highway, the second outlet centre in the Romanian capital has direct access from the autoroute in a key location attracting a catchment area of over three million people. The second FASHION HOUSE Outlet Centre in Bucharest, Pallady is being developed in two phases. Phase one will open with 8,700sq m this summer and the remaining 4,000sq m will follow at a later date. Costing €25M, FASHION HOUSE Outlet Centre Pallady will accommodate over 60 stores, and will have restaurants and a children’s play area. The Centre is already over 70 per cent let and will offer customers top-quality international brands with discounts up to 70 per cent, every day, all year round.

Scotch Corner Designer Village is set to be the leading outlet and leisure destination in the North of England when it opens in 2023. Phase One will cover 50 acres, comprising of 80 luxury boutiques, cafés, restaurants, the Blue Diamond Home and Garden centre and leisure, including beautifully landscaped gardens and space. Located on the major A1(M)/A66 Scotch Corner junction, the scheme will benefit from 44 million people in 27.5 million vehicles travelling through the area every year and being one of the most accessible retail and leisure opportunities in the UK. The site will be a great location for a day-out, as well as an enjoyable break in a road journey between England and Scotland. Located on a wider 100-acre site, also owned by Scotch Corner Richmond LLP, the developer has ambitions for further leisure and sporting facilities, a hotel, drive-thru food offer, petrol filling station and employment units.

Springfields is a leading retail and leisure destination in the East of England and offers the perfect day out for fashion, food and family fun. Springfields is home to more than 50 premium and high-street brands for men’s women’s kids and home, including Joules, White Stuff, Jack Wills, Next, M&S, Clarks – plus more, all offering up to 75 per cent off normal retail prices. The site is also home to over a dozen cafes and restaurants, all offering mouth-watering options. Guests can also call into the opulent surroundings of the Noshery restaurant in the Home and Garden Centre for a classic cream tea or a choice of fresh and tasty home cooked seasonal dishes from a tantalising menu.

Work has now started on the Grantham Designer Outlet Village close to the A1 south of Grantham, which is set to open in 2023 with the creation of 1,500 jobs. The £100M scheme will feature 148 shops, restaurants and coffee shops build over an area of 270,000sq ft of landscaped grounds. The scheme will be among only a few premium designer outlets in the UK to front directly onto a major arterial route – the A1 which is the UK’s third busiest road. The scheme is being developed by Grantham-based property investor Buckminster, and designer outlet retail specialists Rioja Estates, with Bowmer + Kirkland as the main contractor. Rioja Estates is in advanced talks with household brands from across Europe that are expected to delight shoppers when the first names are announced later this year.

The Boulevard is Northern Ireland’s only premier outlet shopping destination. Situated close to the Republic of Ireland border, it benefits from shopper footfall from Northern Irish capital, Belfast and one of Europe’s most exciting and affluent cities, Dublin, as well as the surrounding areas. Housing more than 50 brands including Joules, Dune London, Molton Brown, Crew Clothing, Kurt Geiger, Nike, GUESS, Timberland, Jack Wills as well as an Omniplex cinema and several eateries, The Boulevard is the perfect option for fashionistas and families alike and has cemented its position as one of Ireland’s fastest growing retail destinations since landlords Lotus Property bought it in 2016. The Boulevard’s already strong roster of retail brands will soon be bolstered by the arrival of a 3,000sq m M&S Simply Food, a 4,518sq m The Range as well as a Park N Ride facility for the eagerly anticipated HBO Game of Thrones Studio Tour and visitor attraction.

A development designed to strengthen Kuwait’s position as a regional shopping, entertainment and conservative tourism destination. Located in Sabah Al Ahmed Sea City and spanning 116,000sq m. Al Khiran will incorporate a commercial and retail district including Kuwait’s first hybrid format, an outlet shopping precinct, a five-star resort, leisure facilities, Al Khiran Park and Kuwait’s largest marina, with capacity to more than 900 berths. The Al Khiran Hybrid Outlet Mall in Kuwait is set to meet heightened shopper expectations by offering a combination of high value and dynamic experiences when in opens in April 2022. The project area is spread over 350,000sq m, the total GLA of the upcoming outlet is 70,000sq m and it will be home to 300 retail stores. Al Khiran Hybrid Outlet Mall is being developed by the Tamdeen Group which has consistently delivered exceptional real estate including the award winning 360 Kuwait and Al Kout with a single-minded purpose; To Build Great Places.

Set to open this year is a large expansion of the Middle East’s first outlet concept mall, Dubai Outlet Mall. The upcoming expansion will see a significant addition to its overall footprint by almost doubling the size of its current footprint, which will lead to the mall becoming one of the largest in the industry. As part of the expansion, the region’s first Megamarket (cash & carry) concept will be launched along with a multiscreen cinema and a selection of big-box concepts in different categories. Within the upcoming expansion from developers Al Ahli Holding Group there will be an added focus on the F&B category with several restaurants, an additional food court and several cafes. All of these additions are being brought together in the additional space to offer the customer a comprehensive shopping and entertainment experience.