Page 42 - RLI April 2019

SPECIAL FEATURE: OUTLETS

OUTLETS

ON THE UP

It’s no secret the retail market is undergoing multiple challenges,
with shopping centres struggling to meet results of previous years.
However, outlet centres are looking at a different picture. The
sector appears to be weathering the storm with new openings,
brands and landlords emerging. Here, Colin Brooks, Managing
Director of Realm, takes a look at what is driving this trend.

irstly, it is important to look at customer demographics. brands aren’t treating their outlet portfolio as a chance to get
By 2020, it is anticipated the over 60s will account rid of old stock, but as a store presence in their own right.
for 25 per cent of the population with outlets well This is attracting more premium brands, who are reaping the
Fplaced to cater for this leisure orientated consumer rewards through plentiful sales and brand awareness.
group that find the relaxed ambience of outlet shopping very We are also seeing an increasing presence of leisure and F&B.
much to their liking. At the other end of the spectrum, the Outlets tend to be more geographically spread out meaning
brand conscious youth are able to access brands that would be people travel and are therefore looking for much more of a day
otherwise unaffordable as well as feed their passion for sports out. Casual dining brands are looking to capitalise on this trend,
and ath-leisure. This is especially the case for urban outlets like similarly more and more owners of sports stadiums, concert
Princess Quay and the O2 Icon, which are both contrary to the facilities and exhibition halls are looking to include outlet retail
traditional out-of-town centres usually only accessible by car. to provide an additional draw for visitors.
Outlets continue to operate in a largely internet proof format. Less driven by retailers’ seasonal stock packages, outlet operators
By their very nature, attracting a more opportunistic, aspirational are much more attune to the shifting dynamics of their customers.
and bargain hungry shopper looking to spend money. All of this They need to be offering what they want, in order to succeed
provides a safe solution to the challenges of internet retail – and be much more nimble as a result. A long way from handing
stock changes very frequently and is generally not online which out satisfaction surveys, outlet operators are using technology to
endorses the reasons to continue to visit in person. do this seamlessly and efficiently. Online live chats, social media,
The sector is much more about quality, value and in store voting buttons and mobile apps are all used as platforms
experience as opposed to purely discount. Gone are the days for feedback, offers and events and for essential information.
of piles of discounted clothes and out of date shop fits. Many The sector doesn’t just harness information from shoppers but
are now boasting the same, if not better, customer facilities. At occupiers themselves, through turnover leases. This regular flow
Wembley Park, there are a range of ‘guest services’ on offer of data provides valuable insights in to where marketing or asset
including free Shop ‘n’ Drop facilities, mobile phone charging management initiatives need to be implemented.
and Instagram-worthy installations or displays all of which go Of course, it would be naïve to claim that combined these
a long way to encourage dwell time. initiatives provide the solution to retail’s wider problems.
At Livingston Designer Outlet, £7M is being invested into However it does seem like the perfect time for full price
improving the customer journey and improving the overall shopping centres to consider new approaches to customer
aesthetic. In turn, the landlord’s confidence in the scheme service, and to aligning the objectives of the landlord much
has encouraged retailers to invest in their own fit-outs. These more closely to that of the occupier.

RESORTS WORLD, Birmingham, UK
Developer: Genting