Outlet Center Retailing in Europe: Major Players, Strategies and New Opportunities

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The UK outlet market is the most heavily developed in the EU. The country contains 55 outlets and has 14.0 sq m of outlet space per 1,000 people. Romania has the least developed discount outlet market in the region with only 1.3 sq m of outlet space per 1,000 people, however there are three new outlets in development.

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Outlet Center Retailing in Europe: Major Players, Strategies and New Opportunities

  1. 1. Outlet Center Retailing in Europe: Major Players, Strategies and New Opportunities Published: November 2011 No. of Pages: 131 Price: $ 3450 Discount destinations provide consumers with luxury and high street brands at prices reduced by 30-70%, and the format continues to perform strongly across the EU27. This report outlines the size of the outlet market and identifies growth markets based on new openings. It also provides insight into the issues impacting the sector and profiles the largest EU outlet operators. Features and benefits • Select the most suitable outlets for your retail operations by uncovering where they are located and their current mix of retail tenants by sector. • Inform national business development strategies by uncovering key indicators across each of the EU27 markets, such as outlet space per 1000 consumers. • Exploit opportunities and mitigate risks by gaining insight into the issues impacting retailers and brands distributing through factory outlets. • Select an outlet operator for partnership by using our detailed profiles of the five largest players which includes their locations and strategies. • Maximise sales at your outlets by uncovering how competitors have been driving footfall by attracting tourists, and providing food and entertainment. Highlights • The UK outlet market is the most heavily developed in the EU. The country contains 55 outlets and has 14.0 sq m of outlet space per 1,000 people. Romania has the least developed discount outlet market in the region with only 1.3 sq m of outlet space per 1,000 people, however there are three new outlets in development. • Operating stores in outlet centers allows retailers to target a wider shopper audience however they must be careful not to cannibalise sales from full price stores. Many open outlet stores where they don't have any stores nearby and others are selling products that were not available in the full price stores within the national market. • McArthurGlen is the EU's largest pan-European outlet operator managing 20 outlet centers across five European markets. While other regional outlet operators are turning their attention to countries within the Asia Pacific region, McArthurGlen intends to develop its EU markets building new outlets in Germany and France. Table Of Contents
  2. 2. OVERVIEW Introduction MARKET CONTEXT Discount outlet market definitions The European outlet market has growth potential in new markets as well as existing ones Overview of discount outlets across the EU27 There are still opportunities within the five largest discount markets in Europe The discount retailing markets of the UK and Ireland are among the most mature in Europe The Italian outlet market has one of the highest concentrations of GLA to population in Europe. The French market has the greatest number of new outlets in development of all European markets Spain's outlet market is dominated by the operator Neinver Planning legislation has restricted outlet growth in Germany Central and Eastern Europe are attractive new markets Poland is soon to become the home to Europe's largest discount outlet The Czech Republic is a target for new development but could be at its peak Hungarian outlet development is concentrated around Budapest Lithuania's discount outlet market is dominated by the Ogmios Group Romania is a growth market for outlet shopping In Bulgaria, the first discount outlet was recently opened A battle to open the first discount outlet is underway in Slovakia Slovenia's first discount outlet is under development After the UK, Portugal has the highest GLA of outlet space per 1,000 inhabitants Portugal's is the sixth largest market in Europe in terms of outlet space Holland's outlet centers are located where population density is highest The outlet village is new to Greece Belgium's discount outlets are located near its border Sweden's discount outlets host mid-market brands McArthurGlen is the only player in the Austrian discount outlet market Denmark has just one outlet center and one in development Finland will remain devoid of outlet centers until 2013 STRATEGIC ISSUES: OUTLET DEVELOPERS AND OPERATORS Location is a fundamental issue for outlets influencing a center's success Outlets are locating closer to urban areas Outlets locate near national borders to increase footfall and benefit from legislative variations The economy both assists and hinders the outlet market Promotions within full-price retail undermine the significance of discount outlets Fast fashion value players provide convenient alternatives Online retailing is a threat to discount outlets in mature European retail markets Bricks and mortar retailers threaten discount outlets by using their online channel to sell discounted stock Pureplay retailers utilize the online channel to sell Driving and maintaining footfall is a key objective in mature outlet markets Leisure facilities and events fulfill consumer demands for retail experiences Outlets can boost domestic footfall by targeting tourists Outlets must update the brand mix to drive repeat footfall Operators can target consumer segments by differentiating themselves from competitors
  3. 3. Entering new markets in Eastern Europe and China Europe still holds opportunities for outlet developers New outlets in Eastern Europe are larger than the European average European outlet operators are turning to South East Asia and face competition from US players STRATEGIC ISSUES: RETAILERS The outlet channel holds myriad opportunities for retailers Outlet stores can increase retailers' profitability by improving their efficiency Outlet stores target separate consumer segments to full-priced retail operations Retailers can use outlet stores to test new markets and avoid costly errors The operation of outlet stores raise a number of considerations for retailers Retailers must select which discount outlets to locate in Product remains a fundamental concern for outlet stores Retailers must decide when and how to operate their discount stores Retailers must maintain standards of presentation OPERATOR COMPARISONS Fashion House Group has the widest geographic coverage of all outlet operators MCARTHURGLEN McArthurGlen operates the most extensive portfolio of outlet villages in Europe McArthurGlen is working hard to promote its credentials as a fashion specialist McArthurGlen operates an extensive pan-European portfolio of discount outlets McArthurGlen is a leading operator in the Italian outlet market McArthurGlen's future is focused on Western Europe Outlet refurbishments remain integral to the company's success The company is developing its food services to enhance its destination status McArthurGlen's development as a fashion brand conveys greater fashion authority NEINVER Neinver is building a strong presence in Poland Neinver's retail mix is characterized by a high participation in family fashion Spain is Neinver's largest market Neinver has plans for substantial growth in Poland and France VALUE RETAIL Chic Outlet takes its luxury format to China Value Retail's outlets have a higher proportion of homeware retailers compared with its competitors Value Retail operates only in major European markets Despite Germany's legislative restrictions, the country is Value Retail's largest market by GLA Value Retail's future is focused on China The company plans to develop its portfolio in China FASHION HOUSE GROUP Fashion House Group is a newly formed entity dominant in Central and Eastern Europe Fashion House Group's outlets have a mid-market fashion focus Fashion House Group has a strong presence in Eastern Europe Eastern Europe will be the focus of Fashion House's future growth FREEPORT Freeport provides retail opportunities in Eastern Europe Freeport's outlets have a strong food service component Freeport operates outlets predominantly in Western Europe
  4. 4. Freeport has outlets in development in Slovakia and France Freeport will need to rethink its retail mix in Western Europe APPENDIX Further Reading Bibliography Ask the analyst Global Retail FreeView Verdict consulting Disclaimer LIST OF TABLES Table: Discount outlet market definitions, 2011 Table: Total number of discount outlets across the EU27 and other European countries, 2011 Table: Total gross lettable area of discount outlets across the EU27, 2011 Table: Examples of outlet leisure facilities, 2011 Table: Examples of outlet events, 2011 Table: Strategies for targeting tourist, 2011 Table: Europe's largest discount outlet operators, 2011 Table: McArthurGlen company overview, 2011 Table: McArthurGlen's discount outlet portfolio, 2011 Table: McArthurGlen UK outlet centers, 2011 Table: McArthurGlen Italian outlet centers, 2011 Table: McArthurGlen French outlet centers, 2011 Table: McArthurGlen Austrian outlet centers, 2011 Table: McArthurGlen other European outlet centers, 2011 Table: McArthurGlen outlet centers in development 2011 Table: McArthurGlen retail opportunity, 2011 Table: Neinver company overview, 2011 Table: Neinver's discount outlet portfolio, 2011 Table: Neinver's Spanish outlet centers, 2011 Table: Neinver's Polish outlet centers, 2011 Table: Neinver's Italian outlet centers, 2011 Table: Neinver's Portuguese outlet centers, 2011 Table: Neinver outlet centers in development, 2011 Table: Value Retail company overview, 2011 Table: Value Retail's discount outlet portfolio, 2011 Table: Value Retail's German outlet centers, 2011 Table: Value Retail's UK and Ireland outlet centers, 2011 Table: Value Retail's Spanish outlet centers, 2011 Table: Value Retail's other European outlet centers, 2011 Table: Fashion House Group company overview, 2011 Table: Fashion House's portfolio of discount outlets, 2011 Table: Fashion House Polish outlet centers, 2011 Table: Fashion House other outlet centers, 2011 Table: Fashion House outlet centers in development, 2011 Table: Fashion House franchise outlet centers in development, 2011 Table: Freeport company overview, 2011 Table: Freeport's portfolio of discount outlets, 2011 Table: Freeport's outlet centers, 2011
  5. 5. Table: Freeport outlet centers in development, 2011 Table: European discount outlet summary table, 2011 LIST OF FIGURES Figure: Distribution of discount outlets across the EU27, 2011 Figure: Distribution of discount outlets under development across the EU27, 2011 Figure: Named outlets in development across Europe, 2011 Figure: Total gross lettable area of outlets across the EU27 (sq m), 2011 Figure: Average gross lettable area of outlet space (sq m) and total number of outlets across the EU27, 2011 Figure: Gross lettable area of outlet space (sq m) per 1,000 inhabitants, 2011 Figure: The approximate distribution of discount outlets in the UK and Ireland, 2011 Figure: The approximate distribution of discount outlets in Italy, 2011 Figure: Valmontone Outlet, Fashion District Group, 2011 Figure: The approximate distribution of discount outlets in France, 2011 Figure: The approximate distribution of discount outlets in Spain, 2011 Figure: The approximate distribution of discount outlets in Germany, 2011 Figure: The approximate distribution of discount outlets in Poland, 2011 Figure: The approximate distribution of discount outlets in the Czech Republic, 2011 Figure: The approximate distribution of discount outlets in Hungary, 2011 Figure: The approximate distribution of discount outlets in Lithuania, 2011 Figure: The approximate distribution of discount outlets in Romania, 2011 Figure: The approximate distribution of discount outlets in Bulgaria, 2011 Figure: The approximate distribution of discount outlets in development in Slovakia, 2011 Figure: The approximate distribution of discount outlets in development in Slovenia, 2011 Figure: The approximate distribution of discount outlets in Portugal, 2011 Figure: The approximate distribution of discount outlets in the Netherlands, 2011 Figure: The approximate distribution of discount outlets in Greece, 2011 Figure: The interior of the Factory Outlet, Faliro, 2011 Figure: The approximate distribution of discount outlets in Belgium, 2011 Figure: The approximate distribution of discount outlets in Sweden, 2011 Figure: The approximate distribution of discount outlets in Austria, 2011 Figure: The approximate distribution of discount outlets in Denmark, 2011 Figure: The approximate distribution of discount outlets in development in Finland, 2011 Figure: The Lohja Fashion Outlet, Finland, 2011 Figure: Growth opportunities for outlet developers and operators, 2011 Figure: Strategic issues for European outlet developers and operators, 2011 Figure: Ted Baker's discount channel Ted's Shed, 2011 Figure: Las Rozas' Chinese New Year leaflet, 2011 Figure: Opportunities and risks for retailers with outlet stores, 2011 Figure: Considerations for retailers operating outlet stores, 2011 Figure: Retail mix of the La Reggia and Berlin discount outlets, 2011 Figure: Ashford Designer Outlet, 2011 Figure: Troyes Discount Outlet, 2011 Figure: Salzburg Discount Outlet, 2011 Figure: Retail mix of the Factory Poznan and Zweibrücken The Style Outlets discount outlets, 2011 Figure: Factory Poznan, 2011 Figure: Castel Guelfo The Style Outlets, Italy, 2011 Figure: Architectural designs of Galeria Katowicka, Poland, 2011 Figure: Population map of Portugal, 2011
  6. 6. Figure: Retail mix of the Bicester, Kildare, Las Rozas, Ingolstadt, and La Vallée discount outlets, 2011 Figure: Fidenza Village, Italy, 2011 Figure: Maasmechelen Village, Belgium, 2011 Figure: Retail mix of the Bucharest West and Warsaw discount outlets, 2011 Figure: Fashion House Sosnowiec, 2011 Figure: Fashion House Gdansk, Poland, 2011 Figure: Fashion House Warsaw, Poland, 2011 Figure: Fashion House Bucharest East, Romania, 2011 Figure: Fashion House Belgrade, 2011 Figure: Retail mix of the Freeport Alcochete, International, and Kungsbacka discount outlets, 2011 Figure: Freeport Alcochete Facebook product boards, 2011 Figure: Plans for the One Fashion Outlet discount center, 2011 Figure: Plans for the One Fashion Outlet discount center, 2011 About Us: ReportsnReports is an online library of over 100,000+ market research reports and in-depth market research studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support to our customers. Get in touch with us for your needs of market research reports. Follow us on Twitter: http://twitter.com/marketsreports Our Facebook Page: http://www.facebook.com/pages/ReportsnReports/191441427571689 Contact: Mr.Priyank 7557 Rambler road, Suite727,Dallas,TX75231 Tel: + 1 888 391 5441 E-mail: sales@reportsandreports.com http://www.reportsnreports.com Visit our Market Research Blog

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