COVER STORY Loving Outlet GLOUCESTER Shopping · New phase 1 schemes announced COVER STORY ... LA...

Designer Outlet Berlin

Plus:

Loving OutletShopping

FOC sales defy the downturnDesigner Outlet Berlin opensNew phase 1 schemes announced

COVER STORY

As consumers discoveroutlets, FOCs prosper

Updates on planned projectsNew tenant signingsand much more…

GLOUCESTERQUAYS

ARMANI COLLECTIONS

BRIONI

BULGARI

BURBERRY

CALVIN KLEIN

COSTUME NATIONAL

DIESEL

DOLCE & GABBANA

ELLE MACPHERSON

INTIMATES

GAP

GUESS

HUGO BOSS

JIL SANDER

KAREN MILLEN

LA PERLA

LACOSTE

LK BENNETT

MARGARET HOWELL

MARNI

MISSONI

MOLTON BROWN

MULBERRY

NICOLE FARHI

NIKE

PAUL SMITH

POLO RALPH LAUREN

PRADA

ROBERTO CAVALLI

SERGIO ROSSI

TED BAKER

TOMMY HILFIGER

VALENTINO

VERSACE

STYLISH SOLUTIONFOR EXCESS STOCK

With a slow economy, when yourcustomers are very careful with theirspending, it is ever more importantto have a good strategy for movingyour excess stock. McArthurGlen isthe outlet partner of choice for thetop designer and fashion brands.Wehave 18 well-located villages across theUK and Europe, with over 70 millionvisitors annually. We recently openedtheVeneto Designer Outlet nearVenice, the Berlin Designer Outletand the Salzburg Designer Outlet.We will soon open a new centre nearNaples, and outlets are underway inAthens, Hamburg and other sites.

To learn more about how we canhelp you elegantly and profitablyclear your stock and increase cashflow, contactVictor Busser inLondon at +44 (0)20 7535 2300or [email protected], please visit us at MAPIC,November 18-20th 2009 inCannes, France.

www.mcarthurglengroup.com

McAG_IOJ_20Aug.qxd:Layout 1 8/20/09 10:37 AM Page 1

CONTENTS

PETER ShARPE ICSC ChaIrman

JAAP GiLLiSICSC ChaIrman, EUrOPEan advISOry bOard

MiChAEL P. KERChEVAL ICSC PrESIdEnt and CEO

RUDOLPh E. MiLiAN, SCSM, SCMD ICSC SEnIOr vP

iCSC EUROPELondon, +44 20 7976 [email protected]

LiNDA hUMPhERS Editor in Chief ext. [email protected]

RANDY GDOViN art director ext. [email protected]

KAREN KNOBELOChadvertising Prod. mgr. ext. 2 [email protected]

SALLY STEPhENSON Senior advertising Executive+1 847 835 1617Fax: +1 847 835 5196 [email protected]

International Outlet Journal is a publication for the non-U.S. factory outlet industry. Copyright © 2009

iCSC/iOJ 2519 n. mcmullen booth rd. Suite 510-356Clearwater, FL 33761+1 727 781 7557

STAFF

PAGE 12PAGE 4 PAGE 24

Vol. 5 No. 4 Fall 2009

Fall 2009 InternatIOnal Outlet JOurnal 3

InsIde

4 What downturn? FOC sales, traffic soar

9 Top brands: Who are they?

10 Industry veteran John Drummond dies

12 Designer Outlet Berlin opens

14 Gloucester Quays opens

16 Phase 1 schemes march toward opening

18 New FOCs planned in France, Italy, Serbia

19 Planned outlet centers chart

19 Hornsea: Was inexperience the real culprit?

20 GVA launches retail academy for tenants

20 FOCs reach tenants through the Internet

22 MCG attracts shoppers with culture

23 News Notes

24 Leasing Notes

26 WTIM: Research helps all boats float

ARMANI COLLECTIONS

BRIONI

BULGARI

BURBERRY

CALVIN KLEIN

COSTUME NATIONAL

DIESEL

DOLCE & GABBANA

ELLE MACPHERSON

INTIMATES

GAP

GUESS

HUGO BOSS

JIL SANDER

KAREN MILLEN

LA PERLA

LACOSTE

LK BENNETT

MARGARET HOWELL

MARNI

MISSONI

MOLTON BROWN

MULBERRY

NICOLE FARHI

NIKE

PAUL SMITH

POLO RALPH LAUREN

PRADA

ROBERTO CAVALLI

SERGIO ROSSI

TED BAKER

TOMMY HILFIGER

VALENTINO

VERSACE

STYLISH SOLUTIONFOR EXCESS STOCK

With a slow economy, when yourcustomers are very careful with theirspending, it is ever more importantto have a good strategy for movingyour excess stock. McArthurGlen isthe outlet partner of choice for thetop designer and fashion brands.Wehave 18 well-located villages across theUK and Europe, with over 70 millionvisitors annually. We recently openedtheVeneto Designer Outlet nearVenice, the Berlin Designer Outletand the Salzburg Designer Outlet.We will soon open a new centre nearNaples, and outlets are underway inAthens, Hamburg and other sites.

To learn more about how we canhelp you elegantly and profitablyclear your stock and increase cashflow, contactVictor Busser inLondon at +44 (0)20 7535 2300or [email protected], please visit us at MAPIC,November 18-20th 2009 inCannes, France.

www.mcarthurglengroup.com

McAG_IOJ_20Aug.qxd:Layout 1 8/20/09 10:37 AM Page 1

COVER STORY

4 InternatIOnal Outlet JOurnal Fall 2009

(Continued on page 6)

By LiNDA hUMPhERSEditor in Chief

T he European outlet sector is hungry for numbers. Not a week goes by that IOJ doesn’t get a request

from readers for data on turnover, footfall, occupancy, rents and siting strategies. And lately, the big question has been whether outlets really are countercyclical to a down economy, or as Jayson Eagon of Henderson Global Investors prefers to put it, whether outlets are the defensive asset class.

Comparison with high street and other shopping center sectors would seem to say “yes” to both, and anecdotally, FOCs are on the sweetheart train. But when an outlet center such as Hornsea Freeport does fall on hard times, the media are quick to put all FOCs under the spotlight. So, there’s nothing like actual numbers to convince the skeptical and educate the uninformed.

The most helpful data would come directly from the brands themselves, those brands that operate outlet retail chains. But in Europe, as in the U.S., brands are

reluctant – and even prohibited – from sharing this information. We understand the reasons. Brands are using the outlet distribution channel for a variety of pur-poses and often the numbers aren’t broken out by sector. In some cases, the outlet channel is a good place to hide mistakes; in other cases, the outlet channel is so profitable that it makes wholesale divisions shake in their boots.

In an effort to supply more of this much-needed data to the industry, three German researchers have issued an extraor-dinarily in-depth performance report culled from the retail community’s experience with 58 outlet centers in 16 European countries. It’s no surprise that although the authors contacted 150 brands about participating in the survey, just 19 responded. Still, the data appears credible and the authors have generously allowed IOJ to sift through 150 pages of charts and analyses to share details with our readers. The first story based on this information appears on page 9.

European outlet developers are also cautious about sharing numbers. Why give

away secrets to success that have been earned through years of hard work, expe-rience and capital expenditure?

But IOJ put out a call for total, com-parable outlet-center sales and footfall progress and we are pleased to report that we have received data on 28 centers from nine operators: Chester Properties, Dubai Outlet Mall, GVA Grimley Outlet Services, Henderson Global Investors, ING Real Estate, Land Securities, Resolu-tion Property, Stable International and Value Retail.

henderson Global Investors/mcarthurGlen GroupReporting on seven centers, all ac-quired from McArthurGlen Group, which still operates them: In Austria, Parndorf Designer Outlet; in France, Roubaix De-signer Outlet and Troyes Designer Outlet; in Italy, Barberino Designer Outlet, Castel Romano Designer Outlet and Serravalle Designer Outlet; in The Netherlands,

FOCs countercyclical?Proof’s in the numbers

Serravalle Designer Outlet Village near Milan has helped push the Henderson Global Investors/McArthurGlen seven-center portfolio to a 10 percent increase in YTD sales.

For more information please contact:

Brendon O’Reilly, Director, GVA Grimley Ltd. +44 (0)7831 381 405 brendon.o’[email protected]

www.gvagrimley.co.uk/outlets

know-howNobody knows Outlets better

COVER STORY

(Continued on page 8)


Roermond Designer Outlet; Data is year-to-date from

January 2009 through August 2009.

Turnover (sales): as of August 2009, the seven cen-ters are showing a portfolio-wide increase of 10 percent compared to sales for the same period 2008. Year-to-date 2009 sales have seen positive growth of 6 per-cent to 8 percent. Hender-son Global Investors asset manager Jayson Eagan says the increase means “people really are changing their shopping habits.”

Footfall in the portfolio: YTD the portfolio has seen a 4 percent increase in footfall, with most coming from North-ern Europe. “We have also seen a slight increase in dwell time,” Eagan says.

Vacancy: the portfolio’s vacancy cur-rently sits at 3.8 percent (96.2 percent occupancy).

Occupancy costs: The Fund’s oc-cupancy cost (rent plus service charge as a percent of turnover) currently sits at 11 percent, which Eagan says “is below the 15 percent mark that our European research team are comfortable with.”

Rents: 95 percent of the Fund’s leases

are turnover based, with a cap, Eagan ex-plains: “Each lease’s percentage-rent provi-sion is different, ranging from 6 percent to 12 percent on the turnover they achieve. But generally speaking, rents rise when turnover rises. Base rents are adjusted by the consumer price index or an amount equal to 80 percent to 90 percent of the previous year’s turnover rent, whichever is higher.”

value retailAccording to Frank Blanchette, group retail and marketing director for Value Re-tail Plc, sales performance growth across the developer’s nine villages has remained

(Continued from page 4)

solid. Comparable sales/turnover through June 2009 grew 66 percent against the first six months of last year and all of the nine villages grew faster than their city benchmark, he says.

“Despite continued, aggressive, com-peting markdowns at full-price stores,” he says, “through the second quarter and into the summer trading period the villages posted strong second quarter increases in footfall (+22 percent), com-parative sales (+11 percent) and spend per visitor.

“Tourism spend during the sum-mer trading period has accelerated this growth,” Blanchette says, pointing out that YTD 2009 Tax Refunded Sales recorded by Global Refund at Value Re-tail villages are up 51 percent compared to 2008.

Most significant is the increase in tax refunds for sales from the shoppers from the Middle East, (+122 percent, more than doubling last year’s levels) and from China (+80 percent and representing 23 percent of the total). Tax refunds from shoppers from SE Asia (+67 percent), Hong Kong (+93 percent) and Russia (+36 percent) also enjoyed steady growth.

Kildare Village, near Dublin, continues to swim strongly against the local econo-my with sales for the first six months of 2009 up by over 12 percent and footfall by 20 percent.

Ingolstadt Village, near Munich is recording strong YTD footfall (+27 percent) and sales increases (+30 percent) driven by an increasing awareness of the village among its target market and the recent arrival of two dozen new brands, Blanchette says.

Fashion House, Fashion Arena & Premier Outlets CentersFootfall and Sales for june & july 2009 compared to june & july 2008 Comparable Footfall Comparable Sales

Jun-09 Jul-09 Jun-09 Jul-09Fashion house Outlet Centre 31% 22% 37% 29%WarsawFashion house Outlet Centre 19% 10% 72% 51%SosnowiecFashion house Outlet Centre 12% 17% 28% 28%GdanskFashion Arena Outlet Center 44% 31% 51% 28%PraguePremier Outlets Center 25% 30% 47% 64%denmarkThe five centers total 740,280 sf (70,035 m2 )

Source: GVA Grimley Outlet Services

Value Retail’s Kildare Village near Dublin has defied the local economy with a YTD increase in sales of 12 percent and an increase in footfall of 20 percent.

19 BERKELEY STREET, LONDON W1J 8ED, ENGLAND +44 (0)1869 323 757 WWW.VALUERETAIL.COM

BICESTER VILLAGE – LONDON LA VALLÉE VILLAGE – PARIS FIDENZA VILLAGE – MILAN LAS ROZAS VILLAGE – MADRID LA ROCA VILLAGE – BARCELONA MAASMECHELEN VILLAGE – BRUSSELS / DÜSSELDORF

INGOLSTADT VILLAGE – MUNICH WERTHEIM VILLAGE – FRANKFURT KILDARE VILLAGE – DUBLIN

POLO RALPH LAUREN, VERSACE, SALVATORE FERRAGAMO, DIOR, CALVIN KLEIN, BURBERRY, PAUL SMITH, BALLY, GIVENCHY, MULBERRY, HUGO BOSS, LORO PIANA, ARMANI, KENZO, JIMMY CHOO, DIESEL, MAX MARA, DUNHILL, TAG HEUER, LOEWE, TOMMY HILFIGER, D&G, CAROLINA HERRERA, TOD’S, ERMENEGILDO ZEGNA, FAÇONNABLE, DKNY, CELINE, WOLFORD, SMYTHSON, ANYA HINDMARCH, MARNI, ALEXANDER MCQUEEN, LUELLA, FURLA, TEMPERLEY LONDON AND MANY OTHER LEADING BRANDS HAVE DISCOVERED EUROPE’S EXCLUSIVE OUTLET SHOPPING VILLAGES CREATED AND SERVED BY VALUE RETAIL

RUN BY RETAILERS AND SERVING RETAILERS

THE NINE CHIC OUTLET SHOPPING® VILLAGES OF EUROPE


He adds that Value Retail drew praise from the International Key Accounts Portfolio of Global Refund, which fol-lows the world’s most prestigious brands.

Pier Francesco Nervini, the associa-tion’s VP said in a report that while some luxury brands have been challenged by the current economic climate: “The outstanding plus-50 percent comparable YTD sales growth of the Chic Outlet Shopping Villages across Europe, man-aged by Value Retail, where so many of the luxury brands are represented, confirms that luxury is still in fashion, especially at such irresistible prices.”

Stable International Stable international’s eight-year-old Batavia Stad Fashion Outlet in The Neth-erlands added 6,000 m2 of GLA this year, bringing the center’s total to 26,248 m2 . The opening of the third phase and the ensuing publicity resulted in healthy increases in comparable turnover and footfall:

l Turnover after phase 3 opening: + 30 percent

l Overall turnover: +6 percentl Footfall: +10 percent Batavia Stad Fashion Outlet contin-

ues to be a catalyst for development in the Lelystad area. The first phase of a 400-unit apartment complex has been completed, along with the new full-price shopping venue Lelystad City Centre.

Design meetings have begun for a fourth phase at Batavia Stad Fashion Outlet.

n n n

Dalton Park (owned by ING Real Estate Development UK and managed by DTZ) continues to buck the general retail trend with increasingly strong sales performance and growing visitor levels. An aggressive marketing program at the 160,000-sf center in Murton, England, saw catchment within 90 minutes drive time rise from target 25 percent to 31 percent. Half-year results ending June 2009 show a significant increase despite the general economic downturn:

l Overall sales: +10 percent l Footfall: +6 percent l Spend per head +4.2 percent

n n n

Through this summer, comp sales at the 1.2 million-sf Dubai Outlet Mall

increased 15 percent and footfall grew 20 percent compared to the same period in 2008. The categories that have performed the best during the period are upscale ap-parel, optical and sunglasses, and sports-wear.

“The increases can be related to more people turning to value shopping during the current recession, increased market awareness and mall marketing and PR activities,” says Vishal Mahajan, direc-tor. “And our retailers conducted better in-store offers and promotions this year. However, we are still up against wide-spread discounts in other malls in Dubai because of the downturn in the global economy.”

n n n

Land Securities reports that YTD sales for the 324,030-sf Gunwharf Quays in Portsmouth are up 8 percent over 2008. At the developer’s 320,000-sf Galleria Outlet Centre in Hatfield, England, turnover is up 1.6 percent and footfall is up 2.7 percent. Average spend is up 4 percent over last year, but in 2008, average spend had increased by 26 percent over 2007.

n n n

Resolution Property reports that the 200,000-sf Park Avenue Fashion Outlet in Bilbao, Spain has reported a sales increase of 25 percent compared to the

Call for turnover dataiOJ welcomes comparable sales/turnover and footfall data from any European/UK outlet center, as well as suggestions for improving the reporting.

Please send your center/portfo-lio GLA, comparable sales/turnover and footfall data for the 3rd quarter 2009 to IOJ Editor in Chief Linda Humphers at [email protected]. Further information on the perfor-mance of merchandise categories and center/portfolio occupancy would also be appreciated, as well as comments on why your center/portfolio performed as it did.

The deadline for reporting on 3rd Quarter 2009, which will be in the Winter 2010 IOJ, is 16 November.

same period in 2008 and a footfall in-crease of 10 percent for the first quarter of 2009.

n n n

Chester Properties reports that the 115,000-sf Springfields Outlet Shop-ping & Festival Gardens in Spalding, England, has seen a 35 percent increase in footfall YTD through August. c

(Continued from page 6)

COVER STORY

Stable international attributes turnover increases at Batavia Stad Fashion Outlet in the Netherlands to the opening of its third phase earlier this year.


FOC PERFORMaNCE

Chart No. 2

15 brands with highest FOC penetration* *Based on analysis of 56 centers in 16 countries that have been operating for at least two years

Where the brands are,and where they’re fromProbably any avid factory outlet

shopper could say with high certainty and little consternation

which brands are found most often in FOCs, either in their own mono-brand stores or in multi-brand distributors’ stores. But three German researchers have come up with a definitive list of the 15 brands with the most penetra-tion in the most typical European outlet centers.

The research is included in the in-depth, 150-page Factory Outlet Centre Performance-European Report 2009 by Sven Buchsteiner, senior consultant of retail consulting & research, CB Richard Ellis; Katharina Waldher, consultancy coordinator-retail consulting & research, CB Richard Ellis; and Joachim Will, CEO Ecostra.

Graph No. 1 is based on a total of 56 factory outlet centers and the 2,500 brands found in those FOCs. The analysis considered only brands found in at least 10 centers. Although the analysis concentrates on branded stores, there are a few shops-in-shop and off-pricers included.

One interesting point is that sports and casual brands, such as Nike, Levi’s, Puma, Adidas and Reebok are represented in most locations in their own mono-brand stores. Also, the brands with the most penetration aren’t actually the ones with the highest price points.

As graph No. 2 shows, nine of the top 25 brands in outlet centers are from the U.S. Possibly the American origin of the FOC industry has led to U.S. companies having a higher comfort level with the concept. U.S. chains also appear to have the strongest international brand awareness.

The strongest French and Italian brands aren’t yet typical FOC tenants, as most of their representation is in high streets of-fering luxury goods. For this reason, past season inventory is much smaller than that of mass market brands, thus the need for the outlet channel is lower.

Additionally, luxury brands usually focus on two to four seasonal lines, com-pared to as many as 12 lines per year for casualwear brands such as Esprit, S. Oliver or Zara. c

Chart No. 1

Source: CBRE Ecostra 2009

Top brands by countries of origin

Source: CBRE Ecostra 2009

Chart No. 2


GlOBal PEOPlE

Former halogenExec forms newP.R. agency Dan innes, co-founder and former board director at public relations firm Halogen, has launched Innesco, a property PR and marketing busi-ness. London-based Innesco con-tinues to work with Henderson Global Investors’ European Outlet Mall Fund, liaising closely with the McArthurGlen team across the nine-outlet portfolio.

Other property clients include Ivanhoe Cambridge, Paul Whight’s Cadena, The Wellcome Trust, Insite Asset Management and MGPA. With more than 15-years experi-ence, Innes has acted for numerous property clients including ING Real Estate, Land Securities, Stanhope and British Land. He is chairman of the British Council of Shopping Centres’ New Generation Committee and an active member of the ICSC.

Joining Innes in the new company are Christina Sandkühler as senior account manager and Ben Cooper as account manager. Sandkühler has six years marketing and PR expe-rience and will work on accounts including Henderson, Ivanhoe Cambridge’s St. Enoch shopping center in Glasgow, and Cadena’s new Retail Estate Fund. Cooper is a former Retail Week journalist who will handle retail-sector accounts.

McArthurGlen makestwo key appointments McArthurGlen Europe has appoint-ed Eric Decouvelaere as manag-ing director, Southern Europe, and Geoff Nidd as country manager in France and Belgium.

Decouvelaere was previously regional director of Northern Europe for McArthurGlen. In his new posi-tion, he oversees the company’s four designer outlet villages in Italy, including Serravalle Designer Outlet, as well as two outlet villages in France (Troyes Designer Outlet and Roubaix Designer Outlet) and one in Belgium,

Factory Shopping Messancy.Decouvelaere will also oversee the

leasing and management of two new designer outlet schemes: the 20,000-m2 first phase in Naples and the 21,000-m2 phase one in Athens. Both projects are set to open in 2010.

Decouvelaere joined McArthurGlen

By LiNDA hUMPhERSEditor in Chief

The British outlet industry lost one of its pioneers and true characters in July. As director of the Guinea

Group, John Drummond was an unflag-ging supporter of factory outlet retailing and the driving force behind Junction One, the 200,000-sf outlet center he opened in 2004 in Antrim, Northern Ireland.

Mr. Drummond founded The Guinea Group in 1983 with his friend and business partner John Jones, who be-came the firm’s financial direc-tor. The company specialized in retail development throughout the UK, initially concentrating on prime high-street locations in small towns such as Inverness, Dumfries, Penzance and High Wycombe, becoming especially fond of listed buildings.

Shopping centers in medium-sized towns followed, and by 1993 the Group had focused on factory outlet and off-price formats, both in new build and redevelopments. The group became asset managers and joint owners of Clacton Factory Shopping Village in Clacton-on-Sea, The Galleries in Aldershot, Callendar Square in Falkirk, and Junction One.

Mr. Drummond was in the middle of redeveloping the former K Village in Cumbria, England, when he died July 13. Through his vision, the 24,000-sf outlet center that opened in 1995 was being transformed into the €113 million River-side Place, a mixed-use development set to open in October 2010. That project, which friends say was Mr. Drummond’s baby, has been absorbed by CUSP, which was Guinea Group’s financial partner on

UK outlet veteranjohn drummond dies

Junction One and Riverside.Mr. Drummond was one of life’s

characters, a dynamo, an entrepreneur, a deal maker who once lived in Hong Kong. According to friends, he had suffered from heart trouble for many years, but typically, he held a leasing meeting for Riverside Place during his last stay in the hospital.

At his funeral in Edin-burgh, Mr. Drummond was remembered by John Jones for borrowing his new car one afternoon and returning a few hours later, “bounding into my office with a big grin and that hearty laugh and pronouncing, ‘the good news is I’m OK.’”

Not surprisingly, the Guinea name derived from a West End bar & grill that became a second

office on many evenings. Mr. Drum-mond’s passions were retail, property, cars, Harley-Davidsons and shooting. Mr. Jones said he gradually noticed a pattern to the Scottish locations the company was devel-oping – Dumfries, Stranraer, Kirkcaldy and Falkirk – all well-known for their plentiful supply of wild fowl and pheasants.

“John loved shopping center devel-opments and he always believed the Americans were the leaders,” Mr. Jones said. “So he got as many of the team as possible over to the States for study tours so we could all learn together. He always had a great team ethic and that is still in existence today. He truly believed quality would see the test of time and his atten-tion to detail was second to none.”

In choosing music to play while the mourners left the funeral, Mr. Jones said he and Mr. Drummond’s compan-ion Marion selected “the one that John would have wanted and summed him up perfectly.”

The song was “Bat Out of Hell,” sung by Meat Loaf. c

in August 2005 as retail director, over-seeing the company’s retail strategy and retail operations. Prior to joining McArthurGlen, Decouvelaere had posi-tions with Harrods and Printemps.

Nidd retains his current role as General Manager for Troyes Designer Outlet and Roubaix Designer Outlet. c

John Drummond

© Stable International Development BV, Hardwareweg 26, 3821 BM Amersfoort, Netherlands

+31 (0)33 - 450 40 30 www.stable.nl [email protected]

BATAVIA STADF A S H I O N O U T L E T

WIEDEMARF A S H I O N O U T L E T

MONTABAURF A S H I O N O U T L E T

Building onstrong brands

CENTRE OPENING


A struggling centeris revitalized andtransformed intoan outlet village.By STEPhANiE KRAMERBerl in Correspondent

Shoppers turned out in droves and in the rain on June 18 for the much-anticipated opening of De-

signer Outlet Berlin. Just 30 minutes by car from the Ger-

man capital the new shopping village is a €100 million redevelopment of the old B5 outlet scheme that struggled from the day it opened in 2000. Acquired in April 2006 by Henderson’s Global Outlet Mall Fund, the new owner and its development

partner McArthurGlen immediately set to work on revitalizing the site on the B5 motorway.

Phase 1 of the two-stage redevelop-ment is 9,754 m2 , and construction and leasing have already begun on the 6,746-m2 phase 2. Completion of the second phase, set for autumn 2010, will bring the center to 16,500 m2 .

Comparisons with the previous center are inevitable for a while, but according to Henrik Madsen, manag-ing director of McArthurGlen for the UK and Northern Europe, there is “no comparison between the two projects.” Referring to the B5 center, he said, “They had some great brands, but not all. The current project is well led, well promoted and well organized. If we’ve got the brands the customers want, they will come.”

Phase 1 of Designer Outlet Berlin in-cludes retailers such as Strenesse, Tommy Hilfiger, Nike, Rene Lizard, Levi’s, Adidas, Replay and Fossil.

Jayson Egan, head of asset manage-ment at Henderson Global Investors, sees the changing mood among retailers in Europe, where outlet centers have been slower to catch on than in the U. S.

“Retailers are generally skeptical of the unknown,” he explains, “but now they un-derstand outlet centers and have grasped the positive aspects of the business.”

Henderson owns nine outlet centers operated by McArthurGlen, the larg-est developer, owner and manager of outlet villages in Europe. McArthurGlen helped launch the outlet village concept in Europe in 1995 and operates 17 cen-ters in continental Europe and the U.K. with total sales in 2008 reaching nearly €2 billion.

Despite years of trying, Designer Outlet Berlin is McArthurGlen’s first center in Germany, although 85 percent of the shoppers coming to its scheme in Roermond, Holland, are German. That

henderson, McGrelaunch D.O. Berlin

The transformation of an outlet mall named for a road into the light, bright, tree-lined Designer Outlet Berlin took three years to accomplish.

AdidasCamel ActCK JeansCrocsDaniel HechterEcko Unltd.EstellaFossilGeoxGold Dock

Häagen DazsHallhuberHome & CookJacques HeimK.I.D.S.KunertLegoLevi’sLloydMango

Marc O’PoloMarc PicardMEXXMiss SixtyMöveNikeOlympRené LezardReplaySeidensticker

DESiGNER OUTLET BERLiN TENANT LiST


center, which opened in 2001, posted sales growth of more than 10 percent last year.

The mayor of Wustermark, Bernd Drees, has called the new center’s 16th Century styling a “village within a village.” The overall look is consistent with McAr-thurGlen schemes, reflecting the local culture and architecture, but also the tight restrictions that hampered the previous project.

In 2005, after McArthurGlen an-nounced its interest in taking over the project, a settlement was reached in the legal dispute surrounding planning. To accommodate restrictions on allow-able retail space, the esteemed architect Moritz Kock proposed a design consist-ing of two separate areas, a north and a south section, which are joined by a tree-lined square. The plans were ac-cepted and the project was allowed to proceed. Kock died earlier this year in an airplane crash.

Shoppers looking for a pleasant outing will find Designer Outlet Berlin the place to go. Individual storefronts open onto winding brick sidewalks, with trees and

park benches lining the walkway, inviting weary shoppers to stop and rest in the fresh air. At least three restaurants are in the planning, and several corner cafes of-fer indoor and outdoor seating.

Nearly 6 million people live within 90 minutes of the center. Since its opening, the center has seen an average of 5,000 visitors daily. Though Berlin has been hard hit by unemployment, tourism there is still doing well. In fact, Berlin is Germany’s No. 1 tourist destination, attracting more than 7.5 million visitors a year.

San Francisco Coffee CompanySt. EmileStrenesseSunglass TimeTom TailorTommy HilfigerVilleroy & Boch

This year, with elaborate celebrations marking the 20th anniversary of the fall of the Berlin Wall, even more tourists are expected. And McArthurGlen expects tourism to continue to grow in the city whose motto is “poor but sexy.”

“Berlin will always have a special con-notation,” Madsen says.

Local shoppers are drawn to the center, too, in search of quality at a discount. Bernd Drees put it plainly: Local shoppers are looking to buy high-quality goods, he said, “but with a small wallet.” c

Weeks after its June opening, Designer Outlet Berlin was still attracting 5,000 visitors a day looking for their favorite brands, including Adidas, Fossil, Miss Sixty and Replay.


CENTRE OPENING

By Patience KramerContribut ing Writer

With the opening of Gloucester Quays Designer Outlet in May, the city of Gloucester, located

in the southwest of England near the M5 and A40, pushed back hard on the damp-ening impact of the global recession.

The project – 10 years in the making – is set to revitalize the docklands area of the historic city and provide a long-awaited shopping experience with such fa-vourite outlet tenants as Marks & Spencer, Next, Gap, Austin Reed, Hawes & Curtis, Melka and De Keyser London.

The outlet center is part of the overall 60-acre, £400 million Gloucester Quays development, which includes 150,000 m2 (1.6 million sf ) of retail GLA. It is one of the largest mixed-use waterside rede-velopments in the UK, similar in scope to Land Securities’ Gunwharf Quays in Portsmouth.

More than 15,000 visitors attended opening day in May. The 10-day grand opening featured acrobats flying beneath the scheme’s gull-wing roof, “Gloucester Has Talent” auditions, the Miss Gloucester final, and a three-day Tall Ships festival.

The center opened with 40 stores, with an additional 16 opening in the following weeks. Gloucester Quays is a joint venture of Peel Holdings and British Waterways. Built to revitalize the docklands area of the historic city, the center is the first of seven sites in Gloucester earmarked for a £1 billion makeover. A four-star hotel, supermarket, bars and restaurants are also planned for The Quays.

For Lindsey Ashworth, Peel Holdings development director, the center is the culmination of 10 years of hard work. “It was 1999 when I started this scheme and at the time I didn’t think it was possible,” Ashworth says. “Over the last 12 months it has never ceased to amaze me how good it looks. It will be a turning point for the future of Gloucester. It will become the epicenter for shopping and leisure.”

The development is considered a

Let the boon begin:Gloucester Quays opens

major boon to the city of Gloucester. Mark Owen, chairman of the Federa-tion of Small Businesses and Marketing Gloucester, predicts that as a result of the development “Gloucester will become a shopping destination for the whole south west...This as a fantastic opportunity to attract new business.”

“We all agree Gloucester is in need of regeneration especially around the Docks,” Franco Muccini, director of

Gloucester Quays Designer Outlet observes. “Without a doubt we will put Gloucester on the map.”

Gloucester is readily accessible via the M5 and A40 motorways and by rail is less than two hours from London and only 45 min-utes from Bristol. In addition to center park-ing availability, there is also a park-and-ride service to Gloucester Quays that operates every 12 minutes between the Waterwells and St. Oswalds park-and-ride sites. c

GOUCESTER QUAYS TENANT LiSTAll Wellan GoodAntlerAustin ReedCadburyCaffe NeroCalvin Klein JeansCalvin Klein UnderwearChapelle JewelleryCosta CoffeeCotton TradersDaniel FootwearDe Keyser LondonDenbyEvent JewelleryFeraudGap OutletGreen & Pleasant

Hawes & CurtisHelly HansenHome Curtains & Bedding Hush PuppiesIcebergJeff BanksJovaniL.K. BennettLakeland LeatherLe CreusetMandarina DuckMarks & Spencer OutletMelkaMountain WarehouseMusic Trade OutletMustoNext

Next ClearanceOsprey LondonPast TimesPasty PrestoPavers ShoesQuba & CoRegattaRock CoutureRoman OriginalsSuits YouSunglass TimeTog 24TrespassThe White CompanyWonderbra The Works

Part of the £400 million Gloucester Quays regeneration, the 220,000-sf Designer Outlet portion opened in May with 40 outlet stores and another 15 ready to launch.

Let the boon begin:Gloucester Quays opens

PlaNNED PROJET UPDaTES

PhASE 1 UPDATES


Construction set for Stable’sGerman schemesSTABLE iNTERNATiONAL, devel-oper of Batavia Stad Outlet Shopping in Lelystad, The Netherlands, is committed to extending its outlet business in Germany, which currently has only six outlet centres. Earlier this year Stable was granted building permits for two outlet centers: Wiedemar Fashion Outlet (close to Leipzig) in April and Montabaur Fashion Outlet in March.

Wiedemar Fashion Outlet is near Leipzig, home to such international companies as BMW, DHL, Porsche and Amazon.

The site is on the heavily travelled A9 Munich-Berlin Motorway with optimal ac-cessibility via the Wiedemar exit. Leipzig Airport is nearby, and the major cities of Leipzig, Dresden and Potsdam are all within 30 to 60 minutes drive time.

The 16,000-m2 center features sleek, modern architecture and a distinct colour scheme, with most of the stores indoors to ensure comfortable year-round shop-ping. Porta, the famous German furni-ture store, has confirmed that it will also totally refurbish its store opposite Wie-demar Fashion Outlet to further enhance the look and feel of this superb location.

Construction of Wiedemar Fashion Outlet is scheduled to start in spring 2010 with opening of the set for spring 2011.

Montabaur Fashion Outlet, in the federal state of Rheinland-Pfalz with 4 million residents, is between the densely populated Rhein-Ruhr and Rhein-Main.

The market has strong development po-tential because of the high-speed rail and A3 Motorway connection, and because more than 7 million live within a 90-min-ute drive of the planned project.

The A3 is one of the most important north-south motorways in Germany, with an exit leading directly to the railway station and to the Montabaur Fashion Outlet site. In 2002 Montabaur became linked via the high-speed rail to both Cologne and Frank-furt. Construction of the 13,500-m2 center is scheduled to begin in spring or summer 2010 and open in summer 2011.

Kees Woltering, Stable’s co-owner, said in a company newsletter that partnerships with German companies are key to being able to move quickly on outlet development there.

“Good financing alone is not enough,” Woltering said. “It is essential that Stable

work with strong partners, which also makes financing a lot easier to find. This also pro-vides us with more German knowledge and confidence from the financing parties.”

Woltering noted that few Dutch devel-opers have been successful in Germany, which he attributes to similarities in language and law. “People are quick to assume that if something works in The Netherlands, it must be the same in Ger-many, he said.”

Sofia Outlet Centeropens 29th OctoberBULGARiA’S SOFiA Outlet Center will be 85 percent leased for its October 29 grand opening, according to GVA Grimley Outlet Services, which is handling leasing, market-ing and management of the project.

The 15,500-m2 enclosed mall will have four floors, including two upper levels of retail with a food court and coffee shops, and a subterranean car park with 520 spaces. There will be over 90 outlet stores ranging from 35 m2 to 620 m2 , comprising more than 60 brands, including Adidas, Benetton, Champion, Diesel, ECCO, Geox, JOOP, Levi’s, Mango, Motivi, Nike, Pierre Cardin, Puma, Rip Curl, Rollmann, Sisley, Tommy Hilfiger and Van Laack.

Sofia Outlet Center is part of an estab-lished retail development between the city centre and the ring road, with easy access from the entire city. The outlet center is next to Technomarket and METRO and opposite the EXPO Centre. The catchment includes 2.2 million people within a 90-minute drive and 2.7 million within 2 hours.

Sofia-based Sofia Outlet Center EOOD is the project’s developer.

Montabaur Fashion Outlet (above) and Wiedemar Fashion Outlet are the two outlet projects that Stable International plans to open in Germany in 2011.

The four-level, 15,000-m2 Sofia Outlet Center will open October 25 more than 85 percent leased with brands including Adidas, Benetton, Diesel, JOOP and Mango.


Cittá Sant’AngeloOpens September 24th

Cittá Sant’Angelo Village, sched-uled to open on September 24, is more than 70 percent leased with such tenants as Valentino Fashion group, Guess, Calvin Klein, Puma, Rifle, Baldinini, Lindt Chocolates and Guru.

The 19,000-m2 center is sur-rounded by seaside resorts along the Adriatic Coast, the ski resorts of Gran Sasso and Maiella, and Abruzzo National Park.

The area, visible from the A14 motorway, is close to the Pescara Nord-Cittá Sant’Angelo exit. The site can draw shoppers from the 3 mil-lion residents of Central and Eastern Italy who live less than an hour away and from the significant number of tourists who visit the Adriatic Coast. More than 30 million vehicles pass the site every year.

Promos is handling leasing for the project, which was developed by EuropInvest and owned by Cittá Sant’ Angelo S.p.A. c

Toulouse center to open in 2010PARiS-BASED ADVANTAiL is mak-ing progress on its Moulin de Nailloux Village near Toulouse. The project’s

22,850-m2 phase 1 is planned to open in October 2010, followed by an 8,100-m2 phase 2 opening in May 2012.

The Moulin de Nailloux site is only 20 minutes from Toulouse, the largest city in southwest France with 1.2 million inhabitants and a dynamic economy. When completed, the outlet center will

be the largest in France. The site is also easily accessible from highways A61 and A66, on which 16.5 million vehicles travel an-nually. Some 2 million visitors a year are attracted to the Midi-Pyrénées region for its thermal baths, ski resorts and rich history. They book more than 10 million room nights annually.

The center’s catchment also includes 2.4 million residents within a 90-minute drive. The center’s tenancy will be 70 per-cent international brands and 30 percent French, plus restaurants and cafes.

Advantail is developing Moulin de Nailloux for owner Sanoux Sci. c

Cittá Sant’Angelo, seen above in photos taken in July, was set to open September 24th more than 70 percent leased with tenants including Valentino, Guess and Calvin Klein; Promos handles leasing for the project, which is being developed by EuropInvest.

When Advantil’s Moulin de Nailloux Village near Toulouse opens in 2010, its tenancy will include 70 percent international brands and 30 percent French brands.

NEW PlaNNED PROJETS


Premium to developSicilia Outlet VillageSiCiLiA OUTLET ViLLAGE is scheduled to open in March 2010. the project is being developed by Milan-based Premium Retail in Agira (Enna), in the heart of the island’s lakes and castles district.

Located at the foot of the highest provincial capital in Italy, at the Dittaino junction on the Palermo-Catania (A19) motorway, Sicilia Outlet Village will be developed in two phases.

Phase 1 will comprise 25,000 m2 of GLA, followed by a 6,000-m2 phase 2. The center will be served by a vast 2,200-space parking lot, much of it shaded. The centre’s architecture reflects the region’s Sicilian Baroque period, with enhancements that include ceramics and mosaics rendered by the artisans and masters of Caltagirone. Like a true village, the design includes charming Sicilian restaurants, pastry shops, ice cream parlours and cafés set among flower beds, shade trees and pergolas.

Sicilia Outlet Village also will feature areas dedicated to recreation for families and children, tourist and information services and community plazas designed to host cultural events and concerts. In addition to designer outlets, the center’s tenancy will include shops displaying Sicil-ian craftsmanship, foods and wines.

Sicilia Outlet Village is strategically located at the geographic center of the island, allowing for fast and easy access from all the major urban centers in Sicily: 20 minutes from Caltanissetta, 30 minutes from Catania, 60 minutes from Agrigento and Taormina and 90 minutes from Pal-ermo. In addition to the A19, the ordi-nary road network and the railways will guarantee access to and from the center, ensuring that it can be reached in a short time from any direction and generating a catchment area of some 4 million people within a 90-minute radius.

The province of Enna sees more than 1.5 million tourists each year, attracted by the artistic heritage that includes the Villa Ro-mana del Casale in Piazza Armerina, named a World Heritage property by UNESCO.

Premium Retail, which was founded in 2008 by Stefano Stroppiana and the Percas-si Group, handles the design, development, marketing and operation of large luxury retail properties, including such formats as designer outlets, fashion malls, retail parks, theme shopping centers, green shopping centers, luxury malls and other innovative multi-use distribution channels.

Promos, irgenreplan new centernear SalernoiTALiAN RETAiL DEVELOPERS Ir-genre and Promos announced recently the planned development of a Cilento Outlet Village, to open in Eboli, in the Campania Region, close to Salerno.

The €80 million scheme, to be funded by Irgenre and managed, marketed and leased by Promos, will be constructed in two phases. The 18,000-m2 phase 1 will com-prise 90 shops and 2,500 parking spaces. A 7,000-m2 phase 2 will follow, bringing the total project to 25,000 m2 and 125 tenants.

Construction is already in progress, with the opening scheduled for yearend 2010 or early 2011.

MAB/Neinver planhonfleur center iN PARTNERShiP with MAB Develop-ment, Neinver is planning to develop its first factory outlet center in France. Ac-cording to Jorge Sánchez Mera, who has been Neinver’s corporate retail director since 2003, the planned scheme is in Hon-fleur, in Normandy, close to the beach.

“France is difficult,” Mera says, “but now we are in the running with McArthur-Glen and Value Retail because we have relationships with more than 600 brands across Europe. The value concept now has acceptance and momentum throughout Europe. Our centers are doing better than ever – double digit increases – so we are more aggressively marketing and leasing our concepts.”

With its portfolio of outlet centers in Poland, Portugal, Spain, Italy and Germa-ny, Neinver is quite comfortable branch-ing into the unchartered waters of France with an 18,000-m2 outlet center.

“We believe in becoming locals in each market,” Mera says. “In Poland, 60 of our staff of 60 are Polish; in Italy, 40 of our staff of 50 are Italian; in Spain, 90 percent of 180 people are Spanish; in Portugal, 100 percent; in Germany, 100 percent. Keeping the local flavor is essential.”

Honfleur, The Style Outlets will open in Honfleur, France in spring 2011.

Site found for firstSerbian schemeGVA GRiMLEY Outlet Services will lease and operate what could be Serbia’s first outlet centre. The 30,000-m2 scheme will be in Indija, on a highly visible site on the E75 highway between Serbia’s capital of Belgrade and its second city, Novi Sad. Scheduled to open in the autumn of 2010, the center has a catchment of 3.5 million people within a 30 minute drive.

“We’ve opened up new markets for high quality outlet centers throughout Central and Eastern Europe over the past six years,” said Brendon O’Reilly, executive director of GVA Grimley Outlet Services. “This opportunity in the Republic of Ser-bia is as exciting as they come. It’s a beauti-ful development in a massive, highly acces-sible plot in the middle of all the people in a country that doesn’t have enough retail real estate, especially in Belgrade.”

Economic growth in the CEE territo-ries continues, O’Reilly said, pointing out that Serbia’s economy grew by 6 percent in 2008. c

Sicilia Outlet Village, being developed by Premium Retail, is located in the center of the island with easy access to urban centers as well as cultural sites.

PHaSE 1 PlaNS


By Linda humphersEditor in Chief

W hen the owners of the 20-year-old Hornsea Freeport Shopping Village took them-

selves and the center into administration in June, the event seemed to send shock waves throughout the traditional side of retail real estate.

Outlet industry veterans, however, just shook their heads.

The Hornsea owners, a group of Man-chester lawyers who acquired the scheme for their pension fund from Freeport in March 2005, blamed the recession for poor sales and dropping occupancy at the East Yorkshire scheme. But industry insiders say the problem is more likely the ownership’s inexperience with outlet retailing. And, they say, Hornsea Freeport isn’t indicative of the industry as a whole when many centers and portfolios are enjoying their best year ever (see page 4).

“We see a clear trend of non-operator

centers failing when professionally man-aged centers are booming,” says Brendon O’Reilly, director of GVA Grimley Outlet Services, which operates outlet centers in Poland, Denmark, Czech Republic, Bulgaria and Romania. “We track every outlet center in Europe and we’re seeing double-digit growth across all those with professional operators running them.”

O’Reilly says that with high street basi-cally in “sale” mode half the year, outlet centers with inexperienced leadership are simply allowing retailers to sell goods at pricing near or equal to full price.

“The inexperienced owners don’t understand that outlets must be differenti-ated from full-price,” he says. “Nor do they know how to bring in management principals and procedures that would at-tract more shoppers to their centers and help their tenants increase sales. Tenants then blame the landlords; landlords blame the tenants, and implosion occurs.”

Authors Sven Buchsteiner, Katharina Waldher and Joachim Will say in their

2009 FOC Performance Report, “The professionalism of the operator with regard to management and leasing is an essential factor for the success of an FOC, because FOCs are more management-intensive than shopping centers.”

Hornsea Freeport was likely a victim, O’Reilly says, of the maturing of the UK outlet sector over the last two decades. As the sector developed, older centers, sometimes less productive, are spun off by their original owners. New investors enter the picture, but they often have little understanding of the industry’s quirks. This worries O’Reilly.

“More tenants are producing made-for-outlet product,” he says, “and more off-price retailers are taking up space within centers. These components will dilute the differential between traditional shopping centers and outlet centers in the eyes of the consumers. Outlet specialists have to embrace the issues facing them and influence the investor-owners to act accordingly.” c

Hornsea insolvency filled with lessons

20 Planned European Phase 1 Outlet CentersOpening 2010 and 2011

CENTER CiTY COUNTRY DEVELOPER / OPERATOR OPENiNG

Le Village des Alpes nimes (bellegarde) France bergerac Estates Limited/ 2010 rohleder Lumby retail

Moulin de Nailloux toulouse (nailloux) France Sanoux Sci /advantail 2010

Athens Designer Outlet athens (yalou) Greece mcarthurGlen Europea 2010

Roncade Outlet Gallery venice (treviso) Italy Lefim S.p.a. 2010

La Reggia Designer Outlet naples (marcianise) Italy mcarthurGlen Europe 2010

Pisa Outlet Village Pisa Italy Promos 2010

Norwegian Outlet vestby norway norwegian Outlet 2010

FACTORY Krakow Krakow Poland neinver 2010

FACTORY Warsaw Annopol Warsaw Poland neinver 2010

Timisoara Outlet Village timisoara romania Promos 2010

Ljubljana Outlet Village Ljubljana Slovenia Promos 2010

FACTORY La Coruna Culleredo (La Coruna) Spain neinver 2010Riverside Place Kendal, Cumbria UK Kendal riverside Ltd./ 2010 rohleder Lumby retail

Freeport Outlet Village, Le Cannet nice (Le Cannet des marures) France Freeport 2011

Alsace international Outlet Strasburg (roppenheim) France Freeport 2011

honfleur The Style Outlets honfleur France mab development/ neinver 2011

Neumuenster Designer Outlet hamburg (neumuenster) Germany mcarthurGlen Europe 2011

Montabaur Fashion Outlet Frankfurt (montabaur) Germany Stable International 2011

Gronau Fashion Outlet Gronau Germany Stable International 2011

Wiedemar Fashion Outlet Leipzig (Wiedemar) Germany Stable International 2011

Source: VRN 2009 Global Outlet Project Directory


OPERaTIONS

GVA Grimley Outlet Services (GVA OS) recently launched the Retail Academy in Fashion House

Outlets in Warsaw, Gdansk and Sosnow-iec, Poland, and in Premier Outlet Centre in Budapest. The program is an out-growth of GVA’s philosophy that retail is a rewarding career and that retail manag-ers and teams should have the benefit of appropriate training.

The Retail Academy offers tenants a series of workshops designed to help outlet retailers provide customers with an enhanced shopping experience. Experts have been carefully selected to lead each

workshop. The first workshop in the series is titled “Becoming Excellent” and focuses on delivering excellent customer service.

The workshop places the responsibility for developing a service culture directly on the managers.

“Recognizing what good customer ser-vice is, rewarding it when it is practiced, and coaching the staff to improve when it is not, are key responsibilities of an effective manager,” says Anna Jones, head of retail for GVA OS. “With so much competition out there, service can make the difference. If we coach our tenants to give their customers a delightful shop-

ping experience, a GVA-operated center can become renowned for excellence. This is our vision.”

Training consultant Andrew Morris delivered the first workshop. Morris has more than 15 years of retail experience, from high street to department stores and premium brands. He has an exten-sive background motivating staffs from around the world.

“Through illustrations and stories, I want people to become aware of what makes the difference and become conscious of what is mediocre service and what creates customer delight,” Morris explains. c

The first stop for today’s outlet shoppers is often the Web. To make sure that their second stop is an

outlet center, marketers are either step-ping up the quality of their existing Inter-net sites or launching entirely new ones.

McArthurGlen Group recently intro-duced a series of seven regional Web sites designed to attract new customers to its outlets. Each of the centers will have its own Web site with content relevant to its location. The first new site went live last summer at York Designer Outlet (www.yorkdesigneroutlet.com). Other sites went online in the following weeks. All the sites include a personal shopping section, a “stylist’s picks” section, and opportunities to take advantage of the McArthurGlen “Love Rewards” loyalty programme.

n n n

Fashion house Outlet Centers’ Web sites (www.fashionhouse.pl), which already have drawn 2.5 million visitors, since inception, have undergone a makeover that promises to deliver an enhanced user experience. Subpages direct shoppers to additional promotions in selected shops at each of three Fashion House centers (with interactive maps for each center): Sosnowiec, Warszaw, and Gdansk. The redesign also offers a virtual press room and is available in Polish and English.

“There are no borders on the Internet,” says Katarzyna Czapran, marketing manager at Fashion House Outlet Center in Gdansk.

Gva outlet division launchesretail academy at Fh in Poland

“By keeping up with new technology, we can reach every place in the world with the information about Fashion House.”

n n n

iNG Real Estate’s 160,000-sf Dalton Park in northeast England recently launched a Web site (www.dalton-park.co.uk) that prom-ises visitors they will be “the first to know” about the center’s events and special offers.

The site also includes a section called “Kid’s Stuff,” where children can down-load pictures to colour and print.

Dalton Park says it is the first shopping center in the region to participate in social networking, offering Facebook and Twit-ter sections on its Web site.

“It’s a great way to find out what people feel, want and need so that we can respond effectively,” says Heather Scott, Dalton Park’s marketing director. c

Outlet centers reel in shoppers via Web pages

Understanding that many shoppers are also computer-savvy has driven outlet landlords to develop appealing Web sites for their centers.


McaRTHURGlEN

Outlet villages becomefamily event centres

lion departing passengers. The units are concentrated in a stylish, curved avenue of stores in the departure lounge, part of a £31 million revamp of the terminal.

As the commercial heart of Scotland, Glasgow has the UK’s largest retail centre outside London and hosts the country’s greatest concentration of fashion retailing. Glasgow’s notably vibrant fashion market is driven by an enthusias-tic local audience of young early adopters of fashion, supplemented by strong tourist traffic. In particu-lar, Glasgow’s population has a high proportion of young adults.

Glasgow Airport’s traffic is primarily leisure, with key international destina-tions being the Netherlands, Spain, Ireland, Dubai, the US and Canada. c

McArthurGlen’s Collezioni, a new concept in full-price fashion for the travel retail

market, will open its fourth location at Glasgow Airport later this year. Last year’s launch of the first Collezioni, at Venice Marco Polo Airport, re-in-vigorated the presentation of prestige fashion brands in an airport retail setting. Since then the concept has been expanded to Porto and Dublin Airports, with a portfolio of brands tailored to suit the specific needs of each location. The concept grew out of McArthurGlen’s relationship with more than 750 brands through the outlet distribution channel.

At Glasgow Airport, Collezioni will unveil 11 new stores for directional fashion brands eager to capture an annual audience of more than 4 mil-

Collezioni opens 4th in Glasgow

McArthurGlen usesculture and educationto attract familiesand drive footfall

The 5th Annual Serravalle Outlet Jazz Festival was held August 5-16 at McArthurGlen’s Serravalle Designer

Outlet Village near Milan. Among the 21 acts performing under the stars was Manhattan Transfer, which went on to play at two other McArthurGlen Italian centers: Veneto Designer Outlet Village near Venice and Barberino Designer Outlet Village near Florence. The music at the new Veneto center’s Fashion & Live Music Festival focused on R&B.

Shops and restaurants at all three outlet villages stayed open until midnight during the music festivals.

n n n

At McArthurGlen’s Castel Romano De-signer Outlet Village near Rome, Stan the dinosaur showed up to do a little shop-ping. Stan is a life-sized T-Rex dinosaur replica created by the Black Hills Institute of Geographical Research in the U.S. He is 40 feet (13 metres) long and 12 feet (4 metres) high at the hips.

To celebrate Stan’s arrival, Castel Romano held competitions to win a trip to New York’s American Museum of Natural History. The centre also offered dinosaur-themed merchandising and eating experiences, with everything from T-Rex burgers to brontosaurus fillets.

The big T-Rex joins McArthurGlen’s elephant at Castel Romano. The life-sized elephant sculpture arrived last year by road from the UK, stopping off along the way at designer outlet villages in Swin-don and Ashford in the UK, Roermond in The Netherlands and Troyes, France, before crossing the Alps to Italy. Stan visited Barberino and Serravalle Designer Outlets, before arriving in Castel Romano. Sales jumped by more than 10 percent at each center when the elephant visited. c

Serravalle Designer Village near Milan provide the perfect backdrop for an outdoor music festival such as the jazz festival that McArthurGlen hosts every year at the center.

Outlet villages becomefamily event centres

Fashion Arena plans expansionDOUBLiNG iTS TENANCY in just 18 months, Fashion Arena Outlet Center, the first outlet center in Prague, is now planning an expan-sion. The second phase, scheduled for completion in 2010, will add another 36 retail units to the center. More than 2 million customers have shopped at the 269,100-sf center since its opening in November 2007. Opening with 36 stores, the center now has 74 shops, including well-known Czech brands and interna-tional brands such as Calzedonoia/Intimisimi, Nike, Pepe Jeans London, Samsonite and Ecco.

The €6.3 million phase 2 will add 7,200-m2 to the project’s GLA.

Carlyle, Crimsonform JV forPortugal expansionThE CARLYLE GROUP recently announced a joint venture part-nership with Crimson Investment Management in Portugal. The part-nership will advise, execute invest-ments and carry out asset manage-ment services in Portugal on behalf of Carlyle.

Carlyle will focus primarily on assets located in the Lisbon area across all commercial property sectors, with a particular focus on office, retail and hotels.

Crimson Investment Management will work on an exclusive basis for Carlyle’s third European real estate fund, CEREP III, which raised €2.2 billion of equity in June 2008. Carlyle owns one asset in Portugal, the 807,300-sf Freeport Outlet Alcochete. Carlyle acquired the mammoth cen-ter when it purchased Freeport PLC in 2007 through its second European real estate fund, CEREP II.

NEWS NOTES


Crimson Investment Management was founded in November 2008 by Carlos Moedas, who previously was the Portuguese head of Aguirre Newman.

high speed railsdraw brands toAshford D.O. MCARThURGLEN REPORTS that three new brands, Musto, Skechers and Phase Eight, have relocated to its Ashford Designer Outlet center in anticipation of a new, high-speed rail service that will stop at the cen-ter. The high-speed line promises to cut travel time to and from London by up to 47 minutes. The rail service is scheduled to be in operation by December.

“The new fast train link will not only make it easier for people to travel to Ashford from London,

but it will also enable Ashford to grow as an important location in itself, whether for work or resi-dence, given its greater proximity to London in terms of travelling time,” said David Maddison, manager of Ashford Designer Outlet.

Ashford is a key stop on the Eurostar rail routes and the center has benefited from the weak pound. “We have been seeing a growing number of visitors from mainland Europe, especially Dutch, French and Belgian shoppers as well as German. Our discounts provide a better deal than ever for shop-pers from euro zone countries,” Maddison said.

The 181,735-sf Ashford Designer Outlet, which opened in 2000, has more than 80 stores. Its catchment area includes some of the region’s key towns and tourist locations, including Maidstone, Tunbridge Wells and Canterbury. c

Offering discounts up to 90 percent, the night shopping event better known as Pricemania drew huge crowds this summer to the 185,900-sf Fashion House Outlet Center Warsaw.

lEaSING

LEASiNG ACTiViTY


n McArthurGlen’s seven U.K. designer villages have signed 24 new brands totaling 155,000 m2 of GLA in the past 12 months. The 24 new brands include David Clulow, Columbia Sportswear (its first UK outlet store), Dyrberg/Kern, Elle Macpherson Intimates, Fos-sil, Gieves & Hawkes, G-Star, Henleys, Jesiré, Links of London, Musto, Nicole Fahri, Original Penguin and Osprey London. And in May the Italian denim brand Replay opened a 1,843-sf unit at York Designer Outlet. Existing brands ex-panding into other McArthurGlen UK centers include Tula, now at all seven centers. Lacoste, which opened its first unit at Cheshire Oaks, has opened a second at Ashford Designer Outlet. T.M. Lewin opened its

The first Ferrari Factory Store opened in June at Henderson Global Investors’ Ser-ravalle Designer Outlet near Milan. The Italian center is owned by Henderson’s European Outlet Mall Fund and developed and now managed by McArthurGlen. The 370-m2 store was designed by Studio Iosa Ghini, in association with Advanced Retail Project, a special-ist in luxury retail design. The eye-catching store is alongside one of the main entrances to the 38,000-m2 scheme. The design features a glass roof that curves over to become the sweeping façade. Inside, two replica Formula 1 pit lanes recreate the atmosphere associ-ated with grand prix racing and Ferrari automobiles. The store offers a full range of Fer-rari fashion and accessories, including menswear, womenswear and childrenswear. The retail space will be divided into a fan zone, a luxury zone and a children’s zone.

fourth unit at Swindon De-signer Outlet, with existing units at Ashford, Bridgend and Cheshire Oaks.

n This summer Value Retail signed a number of new tenants at its centers. Cath Kidston, CK Underwear, David Clulow, Desigual, Jack Wills, Jaeger, Samsonite, The North Face and Anya Hindmarch have joined Kildare Village near Dublin. New tenants at Bices-ter Village include Vivienne Westwood, Bulgari, La Perla and Amanda Wakely. These openings follow the recent ar-rivals at Bicester of Luella, Pal Zileri, Radley, D&G, Dolce & Gabbana, DVF, Elizabeth Hurley, Gerard Darel, Marni, Theory and Joseph. Bringing Ingolstadt Village to more than 100 brands are new ten-

ants Gant, Converse, Ecco, Closed, Bench, Piquadro, Brax, Columbia, Foot Locker, Kiki, Clarks, Camel Active, Tom Tailor, Vans, The North Face, Salomon, Levi’s, Fossil, Stefano’s, Dockers, Jacques Britt, Seidensticker, Theory and Helmut Lang. Also in Ger-many, Furla, Salewa, Schu-macher, Think Pink, Triumph and ZZ Hannes Roether have joined Wertheim Village, which is in the Frankfurt market.

n New brands joining Stable International’s 277,446-sf Batavia Stad Fashion Outlet Shopping in the Netherlands include Calvin Klein, Fossil, Miss Sixty and Converse. In the coming months Claudia Sträter, Peak Performance and Marlboro Classics Wom-en will also open at the eight-year-old center. Batavia Stad added 6,000-m2 of GLA this year.

n Land Securities has signed new tenants at The Galleria, Hatfield: Bedeck, Denby, I-Centre, Laura Ashley, French Connection and a 7,500-sf Gap. Jaeger was to open a new outlet in September, and Gant UK has recently taken over their franchisee’s store.

n Tom Tailor opened its first dedicated kids store in the UK at Cusp’s Junction One in-ternational shopping center in Antrim. Pottery company Den-by has also opened its first Irish outlet store, a 1,354-sf unit, at Junction One. The Golf Out-let recently opened a 1,776-sf store in the outlet center.

n Filea Spa’s 263,700-sf Mondovicino Factory Outlet near Turin, Italy, recently signed three new tenants: Kathy van Zeeland, Arcolaio and Brooks Brothers.

n Fashion House Gdansk has signed a new lease agreement with Triumph International.


The 176-m2 Triumph outlet shop will be located in the sec-ond phase of the project. This is the third shop Triumph has opened at Fashion House outlet centers in Poland.

n Brands Direct, which offers an eclectic mix of top brands with a clever fusion of casual and smarter styles, has opened a 1,369-sf unit at ING’s Dalton Park in Murton, England.

n Resolution Property, owner and manager of Park Avenue in Bilbao, Spain, has

signed a lease with Calvin Klein Jeans for 1,292-sf store. Calvin Klein Underwear has been operating at the center since 2007. Additionally, Ben-etton was scheduled to open a 2,000-sf unit in the center this autumn.

n Whitely Village Outlet Shopping in Fareham, England, celebrated its 10th anniversary by signing three new tenants: old-fashioned confectionery store Sweet Traditions, gar-dening store Garden Outlet

and camping specialist Yeo-mans. The 165,000-sf center is about 90 percent occupied.

n Chester Properties has secured Marks & Spencer Outlet to anchor its Festival Park outlet center in Ebbw Vale, Wales. Marks & Spencer, opening its 48th outlet store, has taken a 10-year lease on a 10,000-sf unit. The store was to be open by October 1. The 122,000-sf center, which opened in 1997, counts Clarks Factory Shopping, Cotton Traders, Sports World, Julian Graves and Thorntons among its tenants.

n UBS Triton Property Fund’s 115,000-sf Spring-fields Outlet Shopping and Festival Gardens in Spalding, Lincolnshire, has added Ani-mal to its line-up. The retail-er, a popular youth-oriented boardsports brand, will open a 2,200-sf unit. Animal has about 50 stores in the U.K. and 19 others internationally. It has a turnover of £40 million and in 2008 it saw double-digit like-for-like growth. Animal plans to open 15 new stores this year. Springfields, operated by Ches-ter Properties, also recently signed up Marks & Spencer Outlet and Gap.

n Gap has been busy: The chain recently opened stores at WD ltd.’s Royal Quays Outlet Center near Newcastle, Eng-land, and at Orchard Street Investment’s 125,000-sf Gretna Gateway on the Scot-tish border. The Gretna store is 6,000 sf on a 10-year lease.

n Norwegian Outlet, a planned 118,400-sf project scheduled to open in May 2010, has signed Hugo Boss. The planned center is 75 percent leased with such brands as Tommy Hilfiger, IC Compa-nys, Quiksilver, Puma and Levi´s. Norwegian Outlet is in Vestby, Norway, 25 minutes from Oslo. c

Filea Spa’s Mondovicino Factory Outlet near Turin continues to attract crowds with new tenants and marketing events.

Fashion house Outlet Centre Gdansk, which opened in 2005, will open its 77,560-sf phase 2 in November.

WITH THIS IN MIND

2009/2010 iOJ CalendarICSC european Factory Outlets Conference14 - 15 October, Starhotel Rosa, Milan

Mapic18-20 November, Palais Des Festivals, Cannes

Winter 2010 IOJNovember 11, ad space deadline

two developers, in earnings reports provided by Chelsea and Tanger Factory Outlet Centers because they are publicly held companies.

Our outlet industry in Europe and the U.K. is swamped with data.

On the plus side, turnover rents delivered from the individual shops to center management on a weekly basis have been instrumental in estab-lishing and building some genuinely

close relationships between devel-opers, retailers, managers, proper-ty companies and institutions. This reporting has fos-tered an increased understanding of the shopping-cen-ter business and facilitated greater c o m m u n i c a t i o n on a more regular basis.

More of this type of information sharing, especially regarding mar-keting and other research, would be key tools to delivering what the customer wants and driving sales forward to the mutual benefit of both owner and retailer.

Some data has been collated on UK commercial property by Investment Property Databank since 1985 to provide a reliable index of commer-cial property returns.

But does this data really tell us what the footfall is at a center or which shops are visited or what their conversion rate is? What is the sales density for ladies wear and are the catering units satisfying their cus-tomers? Even if we did share our data, we first would have to standardize

that information: Should we calculate using gross or net sales area? Do customers visit the centers for the purpose of shopping, or are they visit-ing only after they’ve gone to a major tourist destination on the doorstep?

Outlets are still the Cinderella sec-tor of the retail industry and perhaps the plan is to keep the mystique. Without sharing vital information on a cross-border and inter-company basis, the industry will possibly remain in the shadows, even if we all truly believe that outlets are coun-ter-cyclical to a poor economy.

Operators are proud to tell us how well they are doing – even in this recession – but can they prove it to anyone? c

Neil Chapman, CEO of Chameleon Retail Consultancy, has been in the out-let sector since 1996. He has worked on McarthurGlen schemes in Swindon, Cheshire Oaks, Mansfield and York, as well as Gunwharf Quays in Portsmouth, and more recently, Batavia Stad, Designer Outlet Berlin and leoville Premium Outlet in austria.

Shared outlet informationwould benefit everyoneBy Neil ChapmanCEOChameleon Retai l Consultancy

Sharing is good — how many times have I told that to my children?

So why is our industry in the UK so reluctant to share core data? Are we hiding behind our traditional British reserve or are there other, more dis-concerting reasons?

Outlet centers of sorts existed in the U.K. and Europe before the arrival of the U.S.-style strip and village devel-opments, which gave a certain unified shape to the outlet industry here. Interestingly enough, these new outlet schemes were driven by U.S. develop-ers, whom we regard as being more open in sharing statistics on the performance of their centres.

But are they? Not always. I understand that a few years ago,

five outlet developers in the U.S. pooled their center-sales informa-tion in a quarterly category-by-cat-egory report. This information was extremely useful, not only to other developers and financial institu-tions, but also to the entire retail community. However, because the largest U.S. outlet developer – Chelsea Property Group – had always declined to participate, the rest eventually made the same deci-sion and the index died. Outlet-center sales, occupancy, rents and other data is now available from only

Neil Chapman


Vrn Spring Outlet Deal Making25 - 26 March, Rennissance Orlando Resort at Seaworld, Orlando, Florida

Warsaw

St. Petersburg

Moscow

Kiev

Odessa

Gdansk

Sosnowiec

Dnepropetrovsk

Rostov-on-Don

VolgogradBucharest West

Bucharest East

Donetsk

Kharkiv

Samara

UfaChelyabinsk

Yekaterinburg

Omsk

Novosibirsk

Perm

Nizhniy Novgorod Kazan

Crimea

The first FASHION HOUSE Outlet Centre in Russia launches in Moscow. St Petersburg follows shortly.

FASHION HOUSE Development continues to grow its branded portfolio of Outlet Centres. The FASHION HOUSEMoscow project is gathering speed and retail space will soon be released to the market. A further Russian FASHIONHOUSE Outlet Centre is due to launch soon in St Petersburg and after the huge success of FASHION HOUSE Bucharest West, the second Romanian Outlet Centre project is in the final stages of planning for East Bucharest.

• FASHION HOUSE Outlet Centres are also open in: Warsaw (Europaproperty Best Factory Outlet Centrein CEE 2008) – 3 phases openSosnowiec – 3 phases openGdansk – phase 2 opens this winter

• FASHION HOUSE centres are indoor with themed architecture and hugely popular with retailers and consumers alike

• All FASHION HOUSE centres have quickly become successful, attracting major institutional investment

Contact: Neil Thompson [email protected]

• FASHION HOUSE Development plans more centres in Poland and Romania as well as openings in Russia and Ukraine

Date post:	11-Apr-2019
Category:	Documents
Upload:	ledat
View:	214 times
Download:	0 times

COVER STORY Loving Outlet GLOUCESTER Shopping · New phase 1 schemes announced COVER STORY ... LA...

Documents