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OTTO AMBAGTSHEER, CEO – VIA OUTLETS CARLOS GONZÁLEZ, MANAGING DIRECTOR - NEINVER

The outlet sector continues to perform robustly through 2022 Despite it being hard to gauge a clear outlook in the midst of
despite initial concerns around the Omicron variant, the wider political international conflicts, ongoing supply-chain issues and diminished
instability from Ukraine, general rises in inflation and of course petrol purchasing power caused by inflation, we remain optimistic about
price rises. Whilst we are seeing signs of these sensitivities in the same outlet sector performance.
way as all retail markets, the sector remains more attractive than full Last year we saw a general rebound in retail and shoppers coming
price retail for those shoppers seeking best value for money without back into stores across our outlet portfolio, drawn by the lure of
compromising on shopper experience or brand choice. As a result, the the outlet proposition and our ability to respond quickly to changes.
outlet channel remains an ideal solution for brands and shoppers alike. Despite the challenging year, our outlet business recovered steadily
Health and safety continues to be at the forefront of everyone’s minds over the course of 2021, reaching pre-Covid-19 figures in H2 2021,
in 2022, and therefore outlet centres - because their predominately and despite the significant challenges we face in 2022, we do not
open-air design - are in an increasingly good position to attract visitors expect momentum in the sector to wane. In fact, rising prices mean
for days out. that consumers are more value-conscious than ever and are now
We see the outlet industry being further boosted by the arrival of driven by both price, but also experience, particularly on the back of an
digitally-native brands - those which have traditionally never had an extended period of restrictions. The outlet business provides just what
offline presence and are now using fashion outlets to test a bricks-and- the consumer is looking for: an enticing combination of product, price
mortar concept. They want to access and engage with a new type of and experience.
customer in a physical way, and this industry is especially useful for them Outlet leasing terms and conditions are particularly relevant in the
with the flexible leases we offer. current retail climate and we expect our centres’ commercial offer to
A trend we see bigger than ever in 2022 is the omni-channel remain dynamic, creating an additional incentive for customers. Even as we
mindset. After various periods of confinement over the past two years, see some firms becoming more cautious when it comes to their expansion
many consumers have become routinely familiar with online shopping, plans, major international brands, as well as strong local ones, continue to
whilst simultaneously desiring ‘real’ in-person experiences. Not only open in dominant outlet centres and new brands are using the outlet
do they now expect the best of both worlds, but they switch quickly channel to make their debut in bricks-and-mortar. In terms of brand mix,
and effortlessly between online and offline – which means brands and we are also seeing a greater number of younger-focused brands opening
landlords need to join them in becoming channel agnostic. Additionally, across our portfolio, with some of our schemes increasingly targeting
the pandemic has brought about new ways of shopping such as virtual younger shoppers than they used to several years ago.
personal shopping via WhatsApp and live-stream shopping, and the Covid-19 exacerbated the need for easy access to products and
personalisation that these channels have offered will need to be services and up-to-the-minute information, and tech tools will therefore
translated into shopping in the physical world by utilising data in better continue to play a defining role in the sector, with digital services and
and more meaningful ways. tools such as virtual shopping and loyalty programmes helping centres
Finally, the S in ESG - Sustainability will grow further as a key to adapt to ever more digitally savvy shoppers. While invisible smart
differentiator to create an even more positive and regenerative approach tech solutions such as geolocation systems and tracking tools will
to outlet shopping - not just when developing or redeveloping centres continue to help analyse consumer behaviour and adapt aspects such
but as an integral part of any retail experience. We see an increased as marketing, leasing and facilities management, and support brands’
engagement with brand partners on sustainability issues will be needed, strategies.
whether it be shop-fits or brand partners’ own responsible initiatives – In the coming years, there will be plenty of opportunity for value
as well as the implementation of the CRREM tool to set targets for the creation in the outlet sector as schemes adapt to the evolving ESG
reduction of energy consumption and GHG emissions – all in line with scenario, keeping ahead of the new sustainability regulations and
what is required from the commercial real estate industry to limit the requirements, whilst also responding to consumer expectations for
effects of climate change. sustainable and socially conscious shopping experiences.

VICOLUNGO THE STYLE OUTLETS
Vicolungo, Italy
Developer: NEINVER