Continuing to Grow
Despite a number of turbulent years in the retail sector as a whole, international outlet centres remains a niche that is resilient and continues to show signs of growth despite economic uncertainties. Over the coming pages, we hear from a group of leaders within the industry who offer their thoughts on the sector at large.
Ken Gunn, Founder – Ken Gunn Consulting
The outlet sector continues to shine as one of the brightest and most resilient forces in retail real estate, showing remarkable growth in recent years and paving the way for further expansion. According to the latest European Outlet Industry Review (EOIR), sales across Europe’s 210 outlet centres have surged to €23bn – an impressive 23 per cent increase from pre-pandemic levels in 2019. Moreover, the outlook remains strong, with projections indicating that outlet centre sales will climb to €30bn by 2028.
This sustained growth is driven by increasing consumer demand, the expansion of retail and leisure brands into the outlet sector and the sector’s ability to offer a brand-led, discount-driven shopping experience that continues to attract shoppers. The outlet industry’s footprint has expanded significantly, with total floor space growing by 41 per cent since 2014. This momentum is set to continue, with an additional eight per cent growth anticipated through new developments and strategic extensions.
Despite the challenges faced by traditional retail, outlet centres have remained a ‘gleaming jewel in the crown’ of the retail property sector, with clear opportunities for further expansion. There are still underserved locations and untapped ownership and operational models that could further bolster returns and long-term growth.
The EOIR’s latest rankings highlight the top-performing outlet centres in Europe, which include Bicester Village in the UK, Serravalle and Noventa di Piave in Italy, Roermond in the Netherlands and La Roca Village in Spain.
In addition to these powerhouses, the review also recognises the most improved outlet centres in recent years, which are Seville Fashion Outlet in Spain, Fashion House Pallady in Romania, Designer Outlet Algarve in Portugal, Oslo Fashion Outlet in Norway and Brugnato 5Terre Outlet Village in Italy.
One of the most significant indicators of the sector’s health is the number of brands expanding their presence within it. Since July 2023, a staggering 588 additional brands have entered the outlet market. Leading the charge in 2025 is Rituals, which has added 14 new outlet locations, followed by Jack & Jones with 12, Under Armour and Swarovski with ten and Skechers with nine new locations.
When it comes to the most dominant brands in outlet centres across Europe, the top five occupiers remain Levi’s, Guess, adidas, Puma and Tommy Hilfiger.
Interestingly, six key markets – France, Germany, Italy, Poland, Spain and the UK – account for 70 per cent of all outlet stores in Europe. Italy leads in terms of the number of outlet stores, with 2,879 locations, while the UK boasts the highest number of brands represented, with 823.
Looking ahead, European outlet centre floor space is set to increase by eight per cent to 4.4 million square metres by 2027. However, beyond this, the sector holds even greater potential. With further innovation and more stable geopolitical conditions, European outlet floor space could grow by 25 per cent to reach five million square metres. While much of the immediate expansion is focused on Tier 2 and Tier 3 locations, leading operators – including Via Outlets, NEINVER, Promos and Retail Outlet Shopping – are successfully driving performance improvements and pushing centres up the competitive ladder.
An increasingly important driver of this improvement is the growing connection between outlet centres, leisure and tourism. The connection with leisure, day visits and tourism is – and seems to be growing as – a vital component of the outlet sector designation. Around 50 per cent of the 30 most improved outlet centres in 2024 were seen to have leisure elements incorporated into the mix. This integration of experiences beyond pure retail is creating destinations that attract wider audiences and boost dwell time and spend.
Another key trend is consolidation among outlet centre owners and operators. Currently, only 34 operators in Europe manage more than one outlet centre, with many independent owners lacking the negotiating power, leasing expertise and operational efficiencies of larger groups. As a result, we expect to see more consolidation in the coming years, where smaller, individually owned outlets are absorbed into strategically managed and value-enhanced portfolios. Recent acquisitions, such as Realm by Multi Corporation and Retail Outlet Shopping by Groupe Frey, exemplify this trend, while Promos has secured new mandates in Italy.
The international outlet sector remains one of the most dynamic and promising segments of the retail industry. With strong sales growth, continued brand expansion and a clear pathway for further development, outlet centres offer a resilient and highly attractive investment opportunity. The coming years will see both organic growth and strategic consolidation, ensuring that outlet centres maintain their position as an essential and thriving component of the global retail landscape.
Brendon O’Reilly, Managing Director – FASHION HOUSE Group
The fashion retail landscape has faced significant challenges over the past year, shaped by inflationary pressures, rising living costs and shifting consumer priorities. Despite these headwinds, the outlet sector continues to thrive, proving itself as a resilient and attractive retail model. As shoppers look for smarter ways to invest in their wardrobes, outlet centres have become a go-to destination for high-quality fashion at accessible prices.
At FASHION HOUSE Group, we have seen first-hand the growing demand for premium fashion at outlet prices. Our FASHION HOUSE Outlet Centres in Romania, located in Militari and Pallady, have achieved remarkable success, demonstrating that value-driven retail is more relevant than ever. In times of economic uncertainty, customers seek affordability without compromising on quality and outlet shopping presents the perfect solution.
What is driving this success? Firstly, the outlet model remains highly attractive to both retailers and consumers. For brands, outlet centres offer an efficient way to manage inventory while maintaining brand integrity. For customers, they provide a compelling shopping experience with access to top international and local brands at discounts of up to 70 per cent year-round.
Secondly, strategic development and investment in outlet centres have played a crucial role. For example, the expansion of FASHION HOUSE Pallady was not only about adding space but also about enhancing the overall shopping experience. By incorporating more high-profile brands and improving the retail mix, we have strengthened our position as a premier outlet shopping destination in Romania.
Additionally, consumer behaviour has evolved post-pandemic. Shoppers are more discerning and increasingly favour purchases that deliver long-term value. This is evident in the sustained demand for fashion staples, premium brands and timeless pieces that justify the investment. Outlets provide an ideal setting for these purchases, allowing customers to shop smartly without sacrificing quality.
Looking ahead, we remain optimistic about the growth potential of the outlet sector. Even in challenging economic times, shoppers continue to prioritise fashion – just with a more strategic approach. At FASHION HOUSE Group, we are committed to further enhancing our offering, bringing even more exciting brands and experiences to our customers.
The future of outlet shopping is bright and as demand for value-driven retail continues to grow, we are confident that the outlet sector will remain a key player in the fashion industry’s evolution.
Fran Gutierrez, Retail Director – NEINVER
The outlet sector continues to outperform other retail segments, demonstrating strong resilience despite economic uncertainties. Consumer demand for value-driven shopping is on the rise, with research predicting a 30 per cent growth in outlet sales to €30bn by 2028 (Ken Gunn Consulting 2024). Additionally, 70 per cent of consumers plan to buy from outlets or off-price retailers in the next year, regardless of their budget (McKinsey’s State of Fashion 2025). These trends reinforce the outlets’ role in meeting the needs of price-conscious yet brand-aware consumers.
From a retailer’s perspective, as consumer confidence fluctuates, brands see consumer spending uncertainty as a key challenge. To mitigate this uncertainty, brands are increasingly incorporating outlets into their multi-channel strategies in a way to reach the consumer through multiple retail channels. Premium athleisure and lifestyle brands, in particular, are leading the way in transforming outlets into customer acquisition hubs. Many are enhancing their outlet presence by upgrading store designs, integrating digital experiences and offering in-store services such as alterations, customisation and product personalisation. These enhancements elevate the shopping experience, blurring the line between outlet and full-price experience to meet growing consumer expectations. Retailers are increasingly recognising the strategic benefits of this approach: it strengthens brand engagement while optimising inventory and profitability.
To attract new brands, outlet operators are prioritising experiences, driving footfall and repeat visits, focusing on a mix of food & beverage options, pop-up activations or local brand partnerships that extend the centres appeal beyond shopping. Additionally, we see more investment in modernising the centres through refurbishments, sustainable design and upgraded amenities. Year-round events and community-driven initiatives are helping to create a sense of place that visitors expect today; and to engage with younger, experience-driven shoppers, operators are experimenting with different retail formats and focusing on social media-led marketing strategies.
Additionally, amid growing regulations requiring retailers to minimise their environmental impact and reduce carbon emissions, outlets provide a channel to ensure inventory is sold, maximising economic revenue and reducing brand waste.
With strong fundamentals, increasing footfall, growing demand for affordable top brands, a compelling value proposition and the sector’s ability to cater to evolving consumer expectations, the sector is well-positioned for sustained growth in 2025 and beyond.
Nicky Lovell, Head of Outlets and Business Development – Global Mutual
When it comes to outlet leasing and brand conversations, we start with data to ensure we are working with irrefutable facts, then it’s all about the people and relationships. It’s vital to build collaborative dialogues with the people behind the retail brands and work together. If the brand is successful in its location then so too is the scheme. It’s in our interest to ensure that we get it right, from start to finish.
Global Mutual’s strategic approach to outlet asset management is powered by its in-house data team, which sits at the heart of the organisation. In-depth knowledge derived through multiple data points and combined with this team’s scientific methodology provides a unique understanding of the catchment and its potential. It’s this execution that assures brands the audience is right for them.
Data-driven decision-making is fuelling retail growth. Equipping brands and destinations with the statistics they need to spearhead decision-making is imperative in the current market. Successful outlet destinations must leverage considered research and insights to support brands and make a conclusive case for investment.
Whilst data provides the building blocks and proof-points for leasing decisions, it can only go so far. Global Mutual believes in a human approach to asset management, building true partnerships with brands to drive the right decisions and build the best outlet destinations together.
Championing this personalised approach to the outlet retail sector, Global Mutual shuns the outdated ‘cookie cutter’ approach and delivers impressive outcomes, allowing brands and outlet schemes to flourish and thrive in unison.
Renaud Maret, President – Marques Avenue
Pillars of European retail, outlets are undergoing a profound transformation. Between strategic acquisitions, diversification, hybridisation, digitalisation and sustainability, outlets are no longer content to simply follow the market; they are becoming drivers behind change, reconciling accessibility, attractiveness, enriched experience and sustainable performance.
With 25 centres (13 per cent of the European market), France ranks among the market leaders alongside the United Kingdom, Spain and Italy. The French-made outlet, a model of resilient retail par excellence, shows remarkable performances: an average basket of €130 and profitability reaching up to €7,000 per square metres. This dynamic is based on a hybrid positioning, combining attractive prices with immersive experiences.
Recent financial operations demonstrate investors’ growing interest in the sector, as illustrated by Mata Capital’s acquisition of the Marques Avenue Group and five of its managed centres. This transaction comes with an ambitious investment plan to modernise and optimise existing sites in light of restrictions on new commercial spaces.
Historically focused on ready-to-wear, outlets are evolving towards diversification and adaptation of their merchandising: culture, leisure and food & beverage are becoming strategic segments to extend visit duration and strengthen attractiveness. The opening of the 2,500sq m NIKITO leisure park at Quai des Marques Franconville, a first in France in the sector, marks this turning point.
Another strategic lever of this hybridisation is the digital extension and the physical/e-commerce fusion. In 2024, Marques Avenue launched the first integrated marketplace designed to be carried across a network.
Faced with environmental challenges, outlets are no longer content to optimise their economic model; they are becoming actors in retail’s ecological transition. This involves greater eco-efficiency of centres (energy sobriety, decarbonisation, phasing out fossil fuels, greening…).
The sustainable outlet also means promoting more responsible consumption. Marques Avenue is leading the way in Troyes with its “circular outlet” project, dedicated to second-hand, repair and upcycling.
Finally, this transformation cannot be complete without more ethical and transparent governance. In this regard, B Corp certification is becoming a guarantee of high standards in terms of social, societal and environmental impact.
