Iestyn Roberts, Chief Executive of Freeport, discusses factory outlets in a recession. Outlets can help brands by turning excess stock into cash quickly. While some argue outlets undermine brands by encouraging consumers to trade down, Roberts argues outlets do not damage brand equity if operated properly. Outlets provide significant financial and brand benefits to manufacturers and enable more sophisticated supply chain management.

1. Freeport Leisure s.r.o. Chvalovice 169 – Hatě 669 02 Znojmo Czech Republic Tel.:+420 515 266 999 Fax:+420 515 266 990 info@freeport.cz www.freeport.cz info@freeport.at www.freeport.at Factory outlets in the recession Handelskolloquium Vienna 5 th March 2009 Iestyn Roberts Chief Executive Freeport

3. What is an outlet? Freeport International, Czech Republic

4. What is an outlet? A collection of manufacturers’ owned, operated, or licensed stores selling overstocks, excess goods and overruns direct to the public It is a service to brands not consumers. Size and number of outlets is driven by the level of stock held by brands in a country or region Freeport Alcochete, Portugal

6. Friend to the brands

8. Friend to the brands Outlets are far less exposed to the recession and can help compensate for poor full price sales

10. Brand enemy! Outlets encourage shoppers to trade down? Daily Telegraph 25/02/09

11. Brand enemy! Outlets encourage shoppers to trade down? Model Lisa B ...I tend to buy my every day staples from Zara, H&M... Then I wait for the sales..to buy designer pieces... Married to property tycoon Anton Bilton. Brands need to win the next generation of customers – they need to compete with ‘disposable fashion’ and win customers who appreciate the brand values Outlets expose customers to new brands and encourage trial

12. Brand enemy! Outlets undermine brand equity?

15. Fewer projects? Source: ICSC 2007

16. Signs of over capacity?

17. Major opportunities Village de Marques Roppenheim, Freeport

19. Communicating our proposition!

21. THANK YOU! Iestyn Roberts Chief Executive Freeport

22. Freeport Leisure s.r.o. Chvalovice 169 – Hatě 669 02 Znojmo Czech Republic Tel.:+420 515 266 999 Fax:+420 515 266 990 info@freeport.cz www.freeport.cz info@freeport.at www.freeport.at Factory outlets in the recession Handelskolloquium Vienna 5 th March 2009 Iestyn Roberts Chief Executive Freeport