Summer 2007 Issue - Value Retail News

‘Everyone was ready’
for Bridgewater opening
The Outlet tenants
Antler
Armani /The Designer Studio
Banana Books
Billabong
Chapelle Jewellery
Claire’s Accessories
Cotton Traders
Daniel Footwear
Designer Room
Edinburgh Woollen Mill
Fila
Gap
Ghost
Jaeger
Jeff Banks Menswear
Joseph
Julian Graves
Kurt Muller
InternatIonal outlet Journal u Summer 2007
By Linda Humphers, Editor in Chief
Mandarina Duck
Marks & Spencer
Mexx
Mountain Warehouse
Nike
Nitya
Oasis
Olsen
Pavers Shoes
Pilot
Principles
Puma
Ravel
Regatta
Replay
Samsonite
Sanderson
Sunglass Time
The Outlet at Bridgewater Park, which had been aiming for an early May opening,
is like many new projects in that it miscalculated its launch date. But The Outlet
is different from most new projects in that the centre’s leasing has gone so well
that it was able to open one month early, on 3 April instead of 5 May.
“We have been working on this project for over 10 years, so to see it open for business
is a massive boost, not only to me, but to the entire team who have worked to
deliver the scheme,” said John Farmer, chairman of GML Estates, developer of the
e103 million centre that is on the A1 between Belfast
and Newry, outside Banbridge, N.Ireland.
“The Outlet has had a positive impact on the
local area, including the creation of over 500
construction jobs and around 400 retail jobs. It
is a significant milestone for the area and indeed
Ireland, as The Outlet has been specifically created
to cater for an all-Ireland market. We are expecting
a footfall of well over 1 million visitors a year which
will increase once Bridgewater Park, the e293 mil-
Joanne Skilton
lion retail park incorporating The Outlet opens in the near future.”
The 205,000-sf centre opened more than 50-percent occupied, with
other signed tenants opening in the coming weeks. According to Joanne
Skilton, GML commercial director, the centre was 74 percent leased as
of early May. Skilton told IOJ that she pushed to open the center early.
“We were ready to go,” she said. “Everyone
was ready and I said let’s get this thing open
and doing business.”
The Outlet held a soft opening with a
small amount of publicity aimed at Northern
Ireland, Skilton said, to avoid “overpromising
and under delivering.”
She continued, “This is one of the first projects
to be developed on an all-Ireland basis.
We’re all one Ireland now, and that is how we’ll
market the centre.“
That early soft opening has already had a
strong benefit to the bottom line: Skilton said the
centre earned e4.4 million in the first month,
and saw 170,000 shoppers in the first two weeks.
“That’s 10 percent of the population of N. Ireland,”
she said. “What’s great about the Irish is
that they’ll drive a distance for a shopping experience.
They’re like Americans that way.”
Thorntons
Tog 24
Toytown
Warehouse
Whittard of Chelsea
Catering
Burger King
Costa Coffee
Simply Deanes
Starbucks
Subway
Opening Soon
CK Lingerie
Hutchinson 3G
L.K. Bennett
Levi’s
Shoefair Outlet
Van Heusen
Zaza
Between 1.2 million and 1.5 million are
expected to visit the centre annually.
Although it’s early days at The Outlet, 40 percent of
the shoppers are coming from the South, mostly for the
ladies fashion offering, Skilton said, pointing out, “The
spend per head on fashion and accessories in Ireland is
almost as high as it is in central London. It’s the second
highest in the UK, and it’s due to their high expendable
income. The brands really drive the sales – that’s why
we’ve got stores like Joseph and Ghost, which normally
are found only as concessions in department stores.
The shoppers are delirious over finding entire stores of
these brands.”
The Outlet, designed in a curve stretching one-third of a
mile, has been jointly developed by GML Estates, its parent
Orana Group, and Land Securities. The Outlet is the first
phase of the 1.2 million-sf Bridgewater Park scheme. n

Junction One in Northern Ireland
to grow with huge refinancing deal
What is being described as the
largest-ever refinancing
deal in Northern Ireland
was secured in March for the expansion
of the three-year-old Junction
One outlet centre in Antrim.
Ulster Bank and the Junction
One Partnership (a joint venture
between Belfast developer and
regeneration specialist Cusp and
Coleraine-based property developer
Kennedy Group) have agreed
to a e147 million revolving debt
facility for the project.
The 100-acre Junction One
scheme includes the 60-store,
245,000-sf Junction One International
Outlet Centre and a retail park
anchored by Homebase and Lidl.
Expansion plans will see 400 homes
added to the complex, plus multiplex
cinema and adventure golf facility. Work
has already begun on an additional 60,000
sf of outlet space.
An Asda superstore is also being constructed,
while an Express by Holiday Inn
hotel was due to open in May.
The expansion plans will leave Junction
One better able to withstand the challenge
from the rival Outlet at Bridgewater
Park, an outlet, retail and leisure scheme
The end of an era was marked in
Kendal in May when the K Village
outlet centre closed after 12 years
at its landmark riverside home. Kendall
is in Cumbria, England.
While the e147 million Kendal Riverside
site – with shops, offices and
residences – is built, several stores will
operate for the next two years in a temporary
home at 20 Stricklandgate in Central
Kendal. The relocated stores include
InternatIonal outlet Journal u Summer 2007
The latest research proves what Guinea Group already knew about Junction One in Antrim,
N. Ireland: Business at the 245,000-sf centre is booming and sales are increasing.
that opened on the Banbridge junction
of the A1 in Co Down in early April (see
related story, page 4). That project has
205,000-sf of outlet GLA.
Junction One Director John Drummond
says that in only three years
Junction One has become the region’s
dominant outlet centre.
“With three years trading under our belts
we are absolutely delighted with the centre’s
performance,” he says. “At Christmas this
year we defied retailing pundits’ gloomy
forecasts by recording a 13 percent rise
on the previous year. Again at Easter Junc-
tion One performed extremely well.”
Recently carried out independent CACI
research reported that average spend at the
centre had reached an all time high, with
an increased dwell time and over 86 percent
of respondents being extremely positive
about their Junction One experience.
Antrim, a manufacturing and marketing
centre, is situated where the Six Mile Water
enters the northeastern corner of Lough
Neagh. By far the largest lake in Ireland or
Great Britain, Lough Neagh is 17 miles long
and 11 miles wide. The 153 square-mile lake
is a popular recreational destination. n
K Village tenants temporarily relocate
Denby, Klass Collection, Double Two,
Lake Jewellery, Clarks Factory Shop and
The National Trust Gift Shop.
“K Village has played an integral part
in Kendal and the Lake District’s tourism
profile for many years,” says John Drummond,
Kendal Riverside Ltd project
director. “By completely redeveloping
this site, we are confident that K Village’s
contribution to the local economy will
increase significantly, both in terms of
This computer-generated drawing depicts the new K Village at Riverside, which will feature
shops on the ground level, offices above the shops, and apartments on the top.
jobs created and in its role as an important
attraction and driver to increase visitor
numbers to the area.”
The redeveloped K Village will be a
300,000-sf mixed-use project that will reopen
in spring 2009 with a premium outlet
centre, five restaurants and cafes, more
than 500 underground car-parking spaces,
a 5,000-sf Heritage Centre, 20,000 sf of
offices and 90 luxury riverside apartments.
The new project will also include tourist
facilities, including parking space
for more than 25 coaches.
“Whilst the temporary premises
may be new, K Village is still offering
unbeatable discounts of up to
60 percent off recommended retail
price every day of the week,” Drummond
says. “With over 16 million
visitors being welcomed to the area
which is, after London, the second
largest tourist area market in the UK
on an annual basis, we recognise
the important contribution that a
centre such as K Village can make
to the region’s tourism profile.”

Kildare Village leads VR’s first-year sales
Holding the grand opening a year after the soft opening gives
developer Value Retail cause for celebration in Ireland.
By Linda Humphers, Editor in Chief
Value Retail’s Kildare Village, an hour southwest of Dublin,
will celebrate its grand opening on 7 June, a whole year
after stores in the scheme began quietly trading.
Quietly, indeed.
Located amid Ireland’s world-famous thoroughbred studfarms
and the affluent commuter countryside, the village has
been, says Value Retail, a huge success from the start, generating
higher first-year sales, pro rata, than any of the developer’s
other eight projects.
Clearly, part of the centre’s success lies in its location – the
Dublin market attracts 7 million tourists annually. And Kildare
Village opened when the Value Retail engine – forever being
fine-tuned – is smoothly racing along.
In fact, 2006 was a banner year for the
developer: More than 18 million shoppers
visited the nine centres in 2006, a 20 percent
increase over footfall in 2005. Additionally,
170 new tenants opened in 2006, contributing
to a 27-percent increase in total sales and
double-digit comp-store gains. Another 50
new stores will open this year in expansions
totalling 100,000 sf at La Vallée Village,
Desiree Bollier
outside of Paris; Wertheim Village, Frankfurt,
and Fidenza Village, Milan, with an addi-
tional 25 percent more space opening at Bicester Village in 2008.
Life is good at Value Retail, but don’t think all the casual ease
happens without effort.
“The swan looks elegant on the water,” says an amused
Desiree Bollier, CEO, “but there’s a lot of very hard pedalling
going on underneath.”
DyNamIc gOals
To that end, Value Retail has given itself the aggressive target
of doubling total sales within two years, according to Bollier, who
joined the company in 2001 after 14 years with Polo Ralph Lauren,
where she was VP-stores in the U.S. for seven years, followed by
seven years in Europe, the Middle East and the Far East.
The developer has a number of strategies for achieving
More than 17 million people live within a two-hour drive of Wertheim
Village, which opened in fall 2003 southeast of Frankfurt.
InternatIonal outlet Journal u Summer 2007
the sales goal. First is to continue perfecting the aspirational
shopper’s experience and the A+ customer base, what Value
Retail chairman Scott Malkin calls “the most upmarket, highmaintenance
customer.”
“The second strategy is tourism,” Bollier says. “Our villages
are in locations that attract upscale travellers, and we make it a
point to cater to the visitor who views travel as an opportunity
to enjoy the luxury of time.”
Within the last few months Bollier and team initiated the launch
of the first outlet village MasterCard Gift Card in Europe. The
card is unique in that one card, no matter where it was purchased,
can be used at all Value Retail Villages. She has also set up a “new
market” task force, leading one mission herself to China last year
and another this spring to Moscow.
At the core of these initiatives is a major spring promotional
campaign being carried in such international magazines as Vogue,
Vanity Fair and Condé Nast Traveller. The campaign, which includes
a detachable, handbag size Shopaholic’s Guide, published in conjunction
with Condé Nast, reaches out to 95 million potential customers
– and, just as importantly, 2.6 million travel-trade professionals.
“There is no doubt that this international tourist strategy is
working well,” she says. ”For instance, Global Refund – the global
tax refund service – has just reported to us that VAT
refunds at Value Retail Villages were up 60 percent
last year alone, 53 percent of the total coming from
Asian visitors and the average ‘basket sale’ (sales
transaction) is now exceeding e300 – another substantial
jump.
“We believe that the most effective way of brand
building is to create a clear message and to tell it over
and over again in a consistent way. That is what we
are doing with our ‘Chic Outlet Shopping ® Fidenza Village, 60 minutes from Milan and Bologna, opened
in June 2003 with a heavily European tenant mix to attract
Italian shoppers.
’ brand
and Web site, which tells a similarly consistent story,
but, in our case, allows each Village to develop its
own regional and merchandise character.”
cOmmITmENT TO TENaNTs
Always the innovators, Value Retail takes advantage
of technology that can help its brands drive
sales, performance and productivity. For instance,
(See Value Retail, page 10)

mcarthurglen Troyes phase 4 opens
In 1995, it was the first purpose-built
designer outlet centre to open in Continental
Europe, and in April 2007, 12
years later, McArthurGlen Troyes launched
its fourth phase. The centre, originally
14,000-m², has grown to 28,500 m² and over
100 stores – including 15 in the new 5,000m²
expansion.
Located 150 kms southeast of Paris, the
expansion, at the western side of the Troyes
site, completes the centre’s racecourse design,
enabling shoppers to experience a retail
circuit. The centre’s design also maintains
its homage to regional architecture, including
the use of a ‘pan de bois’ effect on
the outer walls.
The official opening of the expansion
coincides with the launch of
McArthurGlen’s new marketing programme
(detailed on page 20).
Since 1995, McArthurGlen has
opened a total of 16 outlet centres
across six countries and a further
six centres are at advanced stages of
development, including new openings
in Salzburg, Athens and Venice
scheduled for 2008/9.
McArthurGlen hosts over 1,200
tenants offering over 650 of the
world’s leading brands. Over 60 million people visit McArthur-
Glen centres each year, with over 15 million visiting Troyes since
its opening. In fact, McArthurGlen Troyes is officially ranked
as one of the most-visited locations in France. The town of
Troyes itself is also a big tourist attraction, boasting numerous
museums, art galleries and a wealth of restaurants.
Existing tenants at McArthurGlen Troyes include Burberry,
Lancel, Armani, Calvin Klein, Kenzo, Lacoste, Nike, Samsonite,
Versace and Black and Decker.
Value Retail
(Continued from page 8)
the company operates an online, password-protected CV system
so that retailers can more easily recruit new staff.
“We’re in locations an hour or more from major cities, but we’re
The 189,000-sf Las Rozas Village opened seven years ago in
a suburb 40 minutes from Madrid.
10 InternatIonal outlet Journal u Summer 2007
Tenants in phase 4 are:
Aigle
Chantelle/Orcanta
Coat Concept (Von Dutch, Balmain)
Geox
Guess
Gérard Darel
Harryland (Nina Ricci, Lacroix, Cardin)
The new expansion
to McArthurGlen
Troyes completes
the centre’s racecourse
design – an
efficient way for every
tenant to have
good visibility.
McGregor
Miss Sixty/Energie
Murphy & Nye
Salomon
Stefanel
Swarovski
Swatch
Zadig & Voltaire
selling sophisticated products,” Bollier says, “so staffing that is
equal to the brand is very important.”
She explained that Value Retail holds job fairs at its centres once
or twice a year, attracting up to 1,500 job-seekers at each one. “It’s
a huge process,” she said. “We fly in our HR department, conduct
a lot of interviews and collect the CVs that fit our profile.”
Turnover isn’t a big problem at Value Retail Villages, Bollier says,
because the developer gives the retailers tools, such as salary guidelines,
that help them retain employees and avoid brand hoppers.
According to Malkin, aside from its leasing and marketing teams,
Value Retail counts on its own retail teams to cater to the brands,
which in turn, elevates the whole outlet-shopping experience and
brings in customers.
“The result is much closer to the way a department store with
concessions is run,” he said, “rather than anything a traditional
landlord would recognise – and it works.”
Value Retail, which in 1995 opened Bicester Village in Oxfordshire,
England, its first scheme, also owns and operates
Maasmechelen Village in Belgium; La Vallee Village in France;
Ingoldstadt Village and Wertheim Village in Germany; Kildare
Village in Ireland; Fidenza Village in Italy; and La Roca Village
and Las Rozas Village in Spain. n

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china’s huge retailing – and FOc – potential
China is the world’s largest retail market – 1.3 billion people
– and loosened regulations have spearheaded an onslaught by
foreign chains, hoping to carve out market share in a country
that sprawls over 3.7 million square miles.
Carrefour and Wal-Mart are among the global chains racing
for a stake in the immense market, hoping to tap into the
country’s mind-boggling retail growth. China’s retail sales are
expected to grow by 14.5 percent this year, compared to 13.7
percent in 2006. The surge last year followed an average of more
than 10 percent annual growth for the previous seven years.
Late in 2004, China dropped most restrictions on foreign retailers,
lifting the limit on the number of stores they could open, and
it seems that everyone’s rushing to meet the country’s needs.
For all the hype, retailers and developers are wary of the
country’s annual per capita buying power, which is just $761,
12 percent of American buying power. But Chinese income
will be boosted this year as the government begins offering free,
compulsory education in all rural areas, and expands minimum
wages, pension plans and medical insurance across the country.
Consumer buying power is increasing, too. Auto sales in the
Crowds flocking to FOC in QingPu
By Linda Humphers, Editor in Chief
Shanghai Outlets Direct Marketing
Square located at Zhaoxiang
Town, QingPu District,
was opened by Shanghai Bailian
Group and Hong Kong’s Wharf in
April 2006. The centre, managed
by Walton Brown, is on Songzhong
Road, 26 km from Shanghai’s People’s
Square, and the only way to get
there is by car, a trip made every day
by some 1,800 automobiles.
The 110,000-m² centre is divided
into three sections. Section A is for
international designer brands, including
Armani, Cerruti 1881, Hugo
Boss, Zegna and Dunhill; Section
B covers second-tier international
brands, over 120 domestic brands
and global sports brands, such as
Sisley, Esprit, Nike and Adidas. Section C provides dining and
entertainment.
QingPu is a favorite topic on Internet blogs where expatriates
pass along shopping tips. One blog said, “There are so many
QingPu tenants include:
5th Street
Adidas Original
Alfred Dunhill
Aquascutum
Armani
Bally (opening soon)
Bank of Shanghai
BCBG
Biba
BMW Lifestyle
Brooks Brothers
12 InternatIonal outlet Journal u Summer 2007
country jumped by 30 percent last year.
The conventional wisdom says that foreign retailers, currently
serving only 100 million of China’s population, have only to wait
– and not long – for the rest to be ready for modern retailing.
With three Western-style factory outlet centers already operating
and another opening next year, the country is already
experiencing the newest form of retail distribution.
Sam Crispin of the China Business Infocenter wrote about his
trip to an outlet centre in Shanghai this way:
“Most unexpected was my trip to Shanghai Outlets. My wife
drags me off to factory outlets every time we are in the US or
UK and just two weeks ago we were in Clarks Village in Somerset
wondering why Shanghai had nothing like it. Imagine
my surprise when I wandered into Shanghai Outlets…I have
scoffed at this place many times as I pass it on the drive out to
QingPu for sailing on a Sunday afternoon. But blow me down if
people weren’t buying things…Chinese consumers have money
in their pockets and cars in their garages, just nowhere to go.
When they go on overseas trips, shopping is a big thing so why
not build the places they like to shop at in China?”
Shanghai Outlets in the QingPu District has been attracting 1,800 cars a day since
opening in April 2006.
Burberry
Canali
Carven
Charriol
CK
underwear
Clarks
Colour 18
Columbia
Cordier
Esprit
Esprit Home
Geox
Givenchy
Lafuma
Lamborghini
Le Coq Sportif
Le Saunda
Levi’s
Lotto
Millie’s
Miss Sixty
people there, and in one store, I even saw a big board with two
sides. One side says: ‘Welcome’ and the other says: ‘Because
there are too many people inside, now we are not accepting new
customers.’ OMG.” [OMG is blog talk for oh-my-god.]
Nautica
New Balance
Nike
Nike Golf
Nine West
Pal Zileri
Ports
International
Puma
Quiksilver
Reebok
S.T. Dupont
Samsonite
Satchi
Sisley
Starbucks
Coffee
TCNY
The North
Face
Tommy
Hilfiger
Triumph
United
Colors of
Benetton
Weekend
Workshop
Wilson
Wolsey
Zegna

Humble start for Hong Kong’s 1st FOC
By RITESH GUPTA, Contributing Writer
Citygate Outlets, a five-level, 462,000-sf outlet
mall in Hong Kong, boasts humble beginnings.
The centre originally was conceived in 1997 as a
mixed-use commercial project servicing the new town
of Tung Chung. But it wasn’t a stunning success, so in
January 2005 Citygate became Hong Kong’s first dedicated
outlet centre.
Owned by Newfoundworld Site 2 (Retail) Limited,
a consortium of Hang Lung Development, Henderson
Land, New World Development, Sun Hung Kai Properties
and Swire Properties (the asset manager), the
336,000-sf Citygate Outlets has grown to more than
40 stores now and more are being announced.
Located adjacent to Tung Chung MTR station – and
with 1,000 car park spaces – Citygate Outlets is accessible
and convenient. A six-screen cineplex, an upscale
spa, extensive food and beverage choices and direct link
to the 440-room, business-class Novotel Citygate Hong
Kong hotel give the centre destination status.
The changeover seems to be going well, as footfall at
the centre has increased 50 percent since 2005 and is increasing
every month. The centre is immediately
adjacent to the Ngong Ping 360 cable car
system, Hong Kong’s newest and hottest
tourist attraction. Hong Kong Disneyland
is less than 15 minutes away and is served
by the same rail line. And tourists flock to
the world-famous Tian Tan Buddha on the
same line.
As the only outlet mall in Hong Kong – and
Tim Jones
the fact that it offers year-round 30 to 70 percent
discounts on international brands – gives the
mall an important point of difference, and thus a competitive advantage,
over mainstream shopping malls, says Tim Jones, senior portfolio
manager for Swire Properties Management.
According to Jones, from a retailer and brand managers’ perspective,
Citygate Outlets is sufficiently distant from tenants’ wholesale
accounts to prevent cannibalization, and sensitivity doesn’t seem
to be an issue, as the centre is 90 percent occupied.
Although the factory outlet centre is a new scheme for
Hong Kong, outlets are nothing new in this city of almost 7
million people.
“Outlet shopping has existed in Hong Kong for some time,”
Jones says. “However, they are in the form of individual outlet
stores either in inconvenient factory areas and buildings that
are not designed for shopping. Or they are one-off sales events
in offices and hotel function rooms.
“Hong Kong consumers are well aware of the outlet concept
with a number of well established centres operating in Japan and
China,” says Jones. “We saw an opportunity
to create an organized outlet mall with welldisplayed
stores offering good service in a
comfortable shopping environment.”
While providing year-round, one-stop
outlet shopping for various brand names,
“Citygate Outlet frees shoppers from the
doubt of any legitimacy or uncertainty in
the quality or nature of the merchandise,”
he says. “These benefits make Citygate
Outlets unique.” n
Since re-opening in 2005 after tepid success as a mixed-use
project, Citygate Outlets has grown to 40 stores and 90 percent
occupancy.
citygate tenants include:
Adidas
Bally **
Bauhaus
Benetton **
Body Shop
Calvin Klein Underwear
Clarks
Columbia
Located next to the Tung Chung MTR station in Hong
Kong, Citygate Outlets is also easily accessible by car,
ferries and bus, and it is just 10 minutes from Hong
Kong International airport.
Esprit
Evita Peroni
Folli Follie
Giordano
Joy & Peace
Kingkow
Kinji Design
Accessories
K-Swiss
Lafuma
Laura Ashley
Le Saunda
Lens Crafters
Levi’s
Lids
Mabelle
Moiselle
Nautica **
New Balance
Nike Factory
Optical 88
Polo Ralph Lauren
Quiksilver
Rockport
Samsonite
Timberland
Vivienne Tam
**opening soon
Summer 2007 u InternatIonal outlet Journal 13
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FoxTown Shanghai’s European touch
Silvio Tarchini, the veteran developer of three FoxTown Factory
Store centres in Switzerland, became the first European
developer to open an outlet centre in China.
While the leap from a country famous for its stability, prosperity
and tradition to one whose history is filled
with regime changes, civic revolt, and today,
rapid economic growth, seems unusual.
Even the climate in Shanghai, where in
June 2006 Tarchini opened the 517,500-sf
centre, is warm and humid, certainly a change
from the cool weather in Switzerland.
IOJ editor-in-chief Linda Humphers
caught up with the globe-trotting Tarchini to
Silvio Tarchini
ask about his decision to make his company,
Studio Silvio Tarchini, an FOC pioneer in
China, his strategy for operating the centre and his plans for future
FOC development around the world. The interview follows.
IOJ: As the owner and operator of three FoxTown FOCs in
Switzerland, what prompted you to leave behind the comfort
zone of Europe to go to China?
TARCHINI: Our tenants have pushed us to clone the successful
formula of FoxTown in China. Moreover, China has a
huge potential and, above all, appetite for fashion.
IOJ: How did the development of FoxTown Shanghai
compare to what you’ve experienced in Europe?
TARCHINI: Shanghai opened with more than 30 stores as
compared to Mendrisio with only nine stores. We believe that we
shall have the same number of stores in a shorter time than in
Mendrisio where we reached our peak – due to lack of available
space – after seven years. In Shanghai, we leased the land and
had the building constructed specifically as an outlet center.
The approvals process did not pose too many problems thanks to
our Chinese partner, Orient International Enterprise Ltd., facilitating
us. As a matter of fact, we received all the building permits in
less than a month. The foundation stone was laid on June 10,
2005 and the centre was inaugurated on June 10, 2006, totaling
a surface of 67’500 m². As a matter of fact, the centre is already
entirely built, and as in Mendrisio, there are three levels.
IOJ: Tell us about your brands – what percentage are
international brands and what percentage are Chinese or
Asian? And how did you find tenants in China?
TARCHINI: Seventy percent of our brands are international,
mainly European. All the shops are directly connected with a
manufacturing company, and in some cases there are licensees
cooperating with the manufacturers, as it sometimes happens in
China. We find tenants by contacting the headquarters of fashion
companies and getting in touch with their Asian retail managers.
This is also in cooperation with a local brokerage.
FoxTown shanghai tenants include:
Adidas
Arnold Palmer
Aee
Autason
Balenciaga
Bank
Baoxiniao - Saint Angelo
Bar
Benetton
Canali
City of Lugano
Coat Concept
Columbia
Dunnu
Ecco
Elegant Prosper
Elena Mirò
Erdos
Fornarina
Geox
I Pinco Pallino
I.T. Sale Shop
Infopoint
Jch Home Furnishings
Keying
Lacoste
Lavico
Le Saunda
Lining Factory Store
Lotto Factory Outlet
1 InternatIonal outlet Journal u Summer 2007
IOJ: We hear of the huge number of people in China and their
purchasing potential. What can you tell us about the FoxTown
Shanghai shopper in terms of age, gender, family income?
TARCHINI: From our experience so far, the FoxTown
Shanghai shopper is middle class, in the age group from 20 to
40. Most of the customers are local, but there are also many
tourists, mainly Chinese who are visiting FoxTown to enjoy a
pleasant shopping experience.
IOJ: How do you market FoxTown Shanghai?
TARCHINI: Marketing and promotional activities are
carried out locally by appointed professionals. The main communication
means include radio, billboards, flyers, newspapers
and advertisements on public transports.
IOJ: What were the biggest challenges you faced in developing
FoxTown Shanghai? What were the most pleasant surprises?
TARCHINI: The biggest challenge was to communicate
with and understand how Chinese people are and the way they
are used to thinking and operating. We had a great deal of help
with this thanks to the valid support of the local authorities.
The most pleasant surprise was that, despite the differences in
culture, the building was finished in just one year! I am also
pleased to tell you that from October 1, 2007 FoxTown will be
connected to downtown Shanghai in about 40 minutes by a
metro and a shuttle bus, a 40 minute trip.
IOJ: Has the venture been profitable yet? Would you do
another in Asia?
TARCHINI: It is too early now to talk about profitability
as the centre has been open less than a year. Anyway, we are
satisfied with the results we are having. The centre opened with
30 stores and we now have about 50 stores, and the project is
following what we foresaw in our business plan. We have various
projects under study now, not only in China, but also in other
Far Eastern and Asian countries. n
Studio Silvio Tarchini’s FoxTown Shanghai, which opened
in June 2006, was developed because Tarchini’s European
tenants were asking for an outlet centre in China.
Luxe
Naturino
Nautica
New Balance
Nike Factory Store
Pierre Cardin
Piombo
Qiaodan
Rapido
Reebok
Reporter Ingram
Samsonite
Sisley
Stonefly
Thefaceshop
Yes or No Swiss Fashion
Zegna

Upscale Shanghai suburb ready for FOC
Shanghai, perhaps more than any other city in China,
has been a canvas for the imaginative for the last 200
years. As various foreigners – French, British, American
– staked their claims and eventually subsided, they left behind
picturesque Westernized neighborhoods
in what had once been a huge swamp. In
2000, to accommodate Shanghai’s need
to suburbanize, China began a seven-year
plan to construct nine satellite cities,
each strongly influenced by a different
historical city in Britain, Italy, Germany,
Spain, Sweden, Holland and Canada.
Enter Shanghai Golden Luodian
Phil Palisoul
Scandinavian Town. It’s a little slice of
Sweden in China, as well as the site for
Lake Malaren Outlets, which will open in 2008. The first phase
will be 150,000 sf, but the scheme can go as large as 450,000
to 500,000 sf in the next three to five years. The centre’s
name comes from a magnificent and opulent golf resort in the
Baoshan District, where Luodian is located, which is northwest
of Shanghai, about an hour from QingPu outlet center and
about 90 minutes from Foxtown Shanghai.
Working as a leasing consultant with Promos and with Shanghai
Golden Luodian Development Company, the developer of
Lake Malaren Outlets, is the U.S.-based Palisoul Co. Phil Palisoul
was formerly with Craig Realty Group, the developer of upscale
FOCs in the U.S. and of Franciacorta Outlet Village in Brescia,
Italy. IOJ editor-in-chief Linda Humphers talked recently with
Palisoul about his interest in China. The interview follows:
IOJ: With a long history of outlet retailing experience in
the U.S. and Europe, what attracted you to China?
PALISOUL: Because of my varied background I was sought
out by the Chinese developer who discovered that he needed some
experienced help. China is very interesting because it is such a
dynamically growing economy and market. It also poses a great
challenge due to many factors and that provides an additional
sense of excitement.
IOJ: What has the development process been like?
PALISOUL: Most of the buildings are actually built but need
some retrofit to accommodate the outlet tenants’ requirements. I
believe that it will be opening within the next nine to 12 months,
about two years after we began working on the project.
IOJ: How is leasing going and who are your tenants?
PALISOUL: Interest has been strong and the leasing is
going very well. Almost all of the brands are international at
this stage. Some Asian brands may come along as we move
forward. Approximately 90 percent are licensees. An outlet
center opened in QingPu about a year ago and that is where we
mined most of our leads. We did it all ourselves. That includes
partnering with Promos from Brescia, Italy who have worked
mainly on European brands that are in the Craig Realty Group
centre in Franciacorta, as well as other Italian locations. The
stores that have been successful in QingPu are anxious to find
more locations. Few exist. Leasing terms are a little different
in China, but, as long as we are competitive, they seem to be
willing to accept most of our terms.
IOJ: Who do you expect the Lake Malaren Outlet shopper
will be?
PALISOUL: Our target shopper is going to come from a
radius of about 25 miles, which is about the distance to the
center of downtown Shanghai. Literally thousands of new
dwelling units have been built or are under construction in
this area. They are marketing these units to the rapidly growing
number of young, more affluent workers in the expanding
professional business sector. That will be our target market
also. Family income is much lower than what we are used to
seeing in the USA, but they have lower living expenses and
the disposable income is growing. Tourism is a big part of
our target market and the fact that Lake Malaren is a new,
golf-themed resort will be part of our marketing strategy.
Millions of Chinese and foreigners visit Shanghai now and
that number is expected to reach huge proportions when
the Olympics occur next year and Shanghai hosts the World
Expo in 2010. And, a new Metro line is being built that will
end at Lake Malaren.
IOJ: What are some of the challenges and revelations
you’ve encountered in this project?
PALISOUL: The answer to this question could fill a book.
Many surprises, some pleasant. Maybe the biggest and most
pleasant surprise to me is how much I like the people in China.
That does not mean that it has been easy, but they are very good
business people. Participating in a pioneering venture at a very
historic time as a new nation arises is very rewarding...also at
times very frustrating. n
Lake Malaren Outlets, planned to open north of Shanghai in 2008, is looking to the thousands of affluent professionals moving
into the Baoshan District to be among its shoppers.
Summer 2007 u InternatIonal outlet Journal 15
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A SI
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Chelsea sounds strong gong in Asia
Shinsegae Chelsea’s first FOC in South Korea to open June 1
R
oseland, N.J.-based Chelsea Property Group, acquired
by Simon Property Group in 2004, will open an upscale
outlet center in a fourth country on June 1 with the
grand opening of Yeoju Premium Outlets in South Korea.
Chelsea also operates outlet centers in the United States,
Mexico and Japan, and now ventures into the Seoul market.
With over 10 million people, Seoul is the largest city in the
world by population, covering an area of only 233 square miles
— smaller than New York City or London. The 253,000-sf center
is 35 miles southeast of Seoul on the Han River, about 65 miles
from the North Korean border.
Seoul-based Shinsegae Chelsea Co. is the 50-50 JV that has
adapted Chelsea’s Premium Outlets concept for outlet centers
in Korea. Shinsegae owns one of South Korea’s biggest department-store
chains and is poised to be among the world’s top 10
retailers by 2012, according to Forbes. The company caters to
the young and the rich, and is now broadening its appeal with
discount stores in Korea and China.
The Seoul outlet center will serve as a distribution channel
for retailers such as Burberry, Coach, Armani, Gucci, Polo Ralph
Lauren and Salvatore Ferragamo. Of the 115 stores in the center,
70 percent will be international brands and the other 30 percent
domestic brands, typical for Chelsea’s non-domestic centers.
“Korea is our No. 1 priority as a company, and at this point the
market presents much more of a growth opportunity than Japan,”
Karen Fluharty, Chelsea’s senior director of international marketing,
told a group of Korean reporters that visited the 499,000-sf
Desert Hills Premium Outlets in Cabazon, Calif., in March.
How many more Premium Outlets centers will go into Korea?
“It will really depend on the tenant availability … so we haven’t
established the exact number of outlet centers we’ll have in Korea,”
C onstruction
continues on the Chelsea Japan’s sixth Premium
Outlets project in Japan, as well as its third phase of
Gotemba Premium Outlets, its flagship property located west
of Tokyo. And it is expanding Toki Premium Outlets, with the
new phase to open this autumn.
A July opening is scheduled for Kobe Sandra Premium
Outlets, which is 22 miles north of downtown Kobe, about a
55-minute drive. Population within 30 miles of the center is
about 13 million people.
l Meanwhile, work continues on the 100,000-sf third
phase of the developer’s project in Gotemba, which next year
1 InternatIonal outlet Journal u Summer 2007
yeoju Premium Outlets include
Armani Group
Brooks Brothers
Burberry
Coach
Dolce & Gabbana
Dunhill
Escada Korea/Laurel
Escada Sports
Furla
Gucci
Hugo Boss
Max Mara/Max & Co
Polo Ralph Lauren
Salvatore Ferragamo
S.T. Dupont
St. John
Theory
TSE
Yves Saint Laurent
Zegna
she said. “But we do believe there is much growth potential.”
Fluharty said that average sales for Chelsea Japan are $800 psf.
For Korea, she forecast that sales would exceed $470 psf. n
Chelsea Japan opening 6th FOC and expansions
The 53,000-sf expansion of Toki Premium Outlets will
bring the two-year-old center to 178,000 sf when it opens
in October.
Yeoju Premium Outlets, scheduled to open in June, is
35 miles southeast of Seoul, the most populated city in
the world.
will add some 50 tenants to its roster. Upon completion of the
new phase in 2008, Gotemba Premium Outlets will contain
about 500,000 sf of GLA and more than 200 retail stores and
restaurants. The project opened in 2000 and was last expanded
in 2003; it is currently the largest outlet center in Japan.
The expansion is partially on land previously used for parking.
l Phase 2 of Toki Premium Outlets, northeast of Nagoya, is
set to open on Oct. 14. The two-year-old scheme is 178,000
sf, with 85 tenants, including seven restaurants and cafes. The
53,000-sf expansion will include 26 tenants, including eight that
are making their debut in Japan: Nikon, Samsonite, Timeless
Comfort (furniture and home fashion), Tissot (watches) and
four children’s apparel specialists: Blue Cross, Daisy Lovers,
Mezzo Piano and Pom Penette. Making their debut in a Premium
Outlets center are Asics (fashion), Boo Homes (kids’
apparel), and Kipling (luggage). Other tenants in the expansion
are Clarks, Gap, Le Creuset, Quiksilver, Swatch, Katherine
Hamnett (shoes), Angel Blue (children’s apparel), Wacoal (intimate
apparel) and fashion tenants Victorinox, Harrods, Marella,
Natural Beauty/Last Call, Phenix and Richard Ginori.
Chelsea Japan’s operating portfolio also includes Sano Premium
Outlets (north of Tokyo), Rinku Premium Outlets (south
of Osaka), and Tosu Premium Outlets (south of Fukuoka), as
well as the soon-to-open project in Kobe.
Chelsea Japan is a joint venture of Chelsea Property Group
(40 percent interest), Mitsubishi Estate Co., Ltd. (30 percent)
and Sojitz Corporation (30 percent).

Welspun to expand
home fashion
business in India
Stories By RITESH GUPTA, Contributing Writer
Mumbai-based home textile maker Welspun Retail,
operator of the 58-unit Home Mart Factory Outlet
chain, is expanding in a big way. Welspun Retail’s
parent, the e740 million Welspun Group, is among the world’s
largest producers of terry towels, with
customers that include Wal-Mart and
JC Penney.
Dipali Goenka, director, Welspun
India, told IOJ that the chain, which
was originally called Welspun Factory
Outlets, operates in 24 cities.
“We decided to rebrand eight or 10
months ago,” she said. “We were of-
Dipali Goenka
fering in those stores a basic product,
though there was no compromise
in quality as we benchmark ourselves against certain
standards. We wanted to be able to offer various price
points on various product to consumers. We also wanted
to improve the shopping experience by working on store
layout and display.”
And Welspun has begun promoting
Home Mart with the slogan “Transforming
houses into homes.’’
The company entered retailing in
2005 with two brands: Home Mart
Factory Outlet for the moderate
consumer and the 40-unit, full-price
Spaces Home & Beyond for the upscale
shopper. Welspun also operates
five full-price Tommy Hilfiger home
collection stores in India. All three
chains carry products for bed, bath,
kitchen, living rooms and dining
rooms. n
The market size for the apparel category
in India is expected to grow to
e24.3 billion and 8 percent of total
retail sales in 2010 from e15.4 billion and
7 percent of market share in 2006.
Pepe Jeans London is ready to capitalize
on that growth. Chetan Shah, country
head, Pepe Jeans London, told IOJ that
Pepe is currently operating five factory
outlets stores across India. But still it may
take a few years for companies like Pepe
to match the trends observed in better
developed markets.
“Currently, factory outlet operations
contribute around 3 percent to the total
business. As the brand grows, the factory
retail operation will become part of the
business strategy. Internationally all big
brands have factory outlets that contribute
significantly to the overall business,”
said Shah.
“Factory outlet retailing in India is still
in a primitive stage,” he said.
But good times are ahead.
“India is witnessing a retail boom and
most of the bigger brands are opening
factory outlets,” Shah said.
Indians love their denim. Consumption
is estimated at 35 million pairs, of
Welspun’s Home Mart
Factory Outlet chain,
which operates 58
stores in 24 cities in
India, stocks home
softgoods in the moderate
price range.
Outlet stores jazz up Pepe Jeans’ retail focus
which about a million are in the superpremium
category, which is priced above
e33, and another five to six million in the
premium segment of e16 to e19.
Pepe’s target audience are 18- to 25year-olds
who are fashionable and follow
international trends.
“For any brand it’s very important to preserve
the image,” Shah said. “Ultimately
the consumer buys a product because they
associate themselves with the image of
the brand. The idea that factory retailing
dilutes or tarnishes the brand is a wrong
perception. The fact of the matter is,
any consumer across the globe purchases
a brand for two basic reasons – she
finds value and she associates with the
brand.”
Summer 2007 u InternatIonal outlet Journal 17

A first: Outlet retailing discussed
at ICSC European Conference
By Linda Humphers, Editor in chief
For the first time in the history of the
ICSC European Conference, outlet
retailing was a topic of discussion during
the educational portion of the event,
held this April in Warsaw. More than
1,000 delegates from 37 countries attended
the conference, discussing world
market trends and many other topics
of interest to the European retail community.
Neil Thompson,
CEO of The Outlet
Company, which
was a conference
sponsor, chaired a
luncheon roundtable
discussion on
“The Image and
Neil Thompson
Reality of Factory
Outlet Centres.”
The Outlet Company is the owner/developer
of three themed outlet centres in
Poland branded Fashion House.
Thompson told IOJ that during the
course of the conference, delegates sign
up for roundtables that particularly interest
them. “We had quite a cross-section
of people,” he said. “There were investors,
developers, owners and managers,
most of whom were from Central and
Eastern Europe and looking for retail opportunities
– definitely outlet opportunities
– in Russia, Ukraine, Latvia, Hungary
and elsewhere in New Europe.
1 InternatIonal outlet Journal u Summer 2007
Ponte di Piave-Stefanel recently opened its first outlet store in Poland at The
Outlet Company’s 138,000-sf Fashion House Warsaw; the two-year-old centre’s
68,705-sf phase 3 will open in November.
“While they don’t have an in-depth
understanding of the sector,” Thompson
said, “they know they need an expert
partner and that people with a toehold
are key to unlocking the assets.”
Thompson kicked off the discussion
with reasons why the outlet-centre image
initially suffered (factory stores with no
retail concept; store fits that were poor,
bleak lighting; erratic stock; unprofessional
sales staff) and then explained how
high the sector has risen.
“Because of what outlet centres have
become now,” he said, “the investment
and tenant perspective is at the forefront
of retail development.”
Fashion House Gdansk, The Outlet Company’s 100,000-sf centre that opened in 2005,
recently added LY Rossignol/Quiksilver and Lee & Wrangler to its tenant line-up.-
Thompson added that the group was
keenly interested in the way outlet assets
are structured and being taken upstream.
“The traditional sector is now learning
from us,” he said. “Because of our
practice of turnover [percentage] rent,
the investor now has the potential to
financialize the rent. Outlet-introduced
ratchet clauses, where rent is raised
every year, has tremendous investment
value.”
The group was curious about how
outlets differ from traditional retailing, he
said. “For instance, traditional retailers
want the largest space possible. For outlet
retailers, it’s crucial to get the smallest
space.”
In most outlet retaling, individual
brands stand on their
own and are responsible for
delivering goods and value, he
said. Eastern Europe, however,
is a distributor culture rather
than a direct-brand culture,
and the strong distributors
have access to more stock.
Thus, 95 percent of tenants
are licensees.
Some of the participants
had actual projects to show
and wanted to know if they
were well-located, Thompson
said. “They wanted to know if
outlets could work alongside
hypermarkets and big boxes,
and next to mainstream shopping.”
McArthurGlen’s Livingston
Designer Outlet in
Scotland and Value Retail’s
La Vallee Village near Paris
are good examples of how, if

2 nd outlet centre proposed
for Bucharest, Romania
A Greece-based
company, American Outlets Overseas, is
floating plans to open a factory outlet centre 21 kms west
of Bucharest, Romania, on a 16-hectare site on the Bucharest-
Pitesti Highway. Escape Outlet Shopping Center, as the project
is called, would be part of a e30 million mixed-use center that
will combine entertainment, retail and leisure with office space,
conference facilities and hotel accommodations.
As planned, the project is divided into three main phases:
u Phase 1 is the FOC, a 40,000 -m² scheme that will be enclosed
to promote year-round shopping.
u Phase 2, also 40,000 m², focuses on leisure facilities, incorporating
a movieplex and waterpark into the project.
u Phase 3, 50,000 m², will include a hotel and conference center,
offices and a big box retailer.
Information on who’s handling leasing was unavailable at IOJ
press time. However, a proposal for investors suggested that rents
start at e25 per m² (since 2000, five shopping malls have opened
in Bucharest with rent levels of more than e180 per m²).
Completion of Escape is scheduled for 2008.
In the meantime, The Outlet Company is planning Fashion House
Outlet Centre Bucharest, between the Escape site and Bucharest.
The opening of the 190,000-sf centre is also planned for 2008.
Bulgaria’s first FOc planned for sofia
GVA Grimley has been contracted to lease and
operate Sofia Outlet Center, which is due to
open in Autumn 2008. The scheme will be Bulgaria’s
first outlet centre.
The 15,500-m²(167,000-sf) scheme will be an enclosed
mall with two upper levels of retail and a subterranean
car park. The site is in a prime location within
the city ring road, at a retail park on Tsarigradsko Shosse
Boulevard, which is the A1 road out of Sofia to Plovdiv
(Bulgaria’s second largest city) and to Istanbul.
Although the developer didn’t want to be named,
the project has an experienced team: Design is by
ECE, a leading shopping centre designer in Europe;
project management is by Germany’s Drees & Sommer.
GVA Grimley Outlet Services, which has a long
reach within Central and Eastern Europe, is handling
leasing and management.
it’s done properly, it can work, he said.
Also among the participants were a few
investors who already are involved in outlet
ventures, and some already had projects in
development.
Thompson’s experience in factory outlet
retailing began with Royal Doulton, where
he spearheaded the company’s 200 UK stores
both in mainstream retail and outlet. He also
held senior positions with Freeport, and most
recently was a consultant with GVA Grimley
Outlet Services.
The Outlet Company operates three Fashion
House Outlet Centres: in Sosnowiec (opened
2004), in Gdansk (opened 2005) and in Warsaw
(opened 2005). TOC recently opened phase
two of Warsaw and are currently leasing the
third phase.
Construction of the 275,000-sf Prague Outlet Center in
the Czech Republic is well under way (the subterranean
car park is clearly visible) and on schedule for the centre’s
8 November opening. The centre, well-positioned on the
E65 Prague ring road at Sterboholy, is a joint venture of
LMS Outlets and TK Development, with leasing and management
by GVA Grimley Outlet Services.
More than1.4 million people live in Sophia, Bulgaria’s capital and
largest city. The 15,550-m² schene will have two enclosed levels
of retail.
Three-year-old Fashion House Sosnowiec near Katowice was the first
of The Outlet Company’s three centers in Poland to open; tenants in the
centre include Nike, Adidas, Puma and Ecco.

Want hip, European shoppers?
lure them with “love”
McArthurGlen’s new ad campaign shoots Cupid’s arrow
at the young, the hip and the well-to-do.
Oooh, la-la, McArthurGlen, Europe’s
largest owner, developer
and operator of designer outlet
villages, has turned to good, old-fashioned
love for its newest ad campaign. Although
McArthurGlen centres attract 60 million
visitors a year with brands including Armani,
Ferragamo, Burberry, Polo Ralph Lauren,
Hugo Boss, Dolce & Gabbana, Prada,
Furla, Diesel and Puma, the developer sees
even more potential shoppers among hip
Europeans.
Thus, there’s “Love,” the campaign
created by some of Europe’s brightest
talents in the fashion photography, video
production and music world.
The ad campaign – created by award-winning Publicis Dialog – is an
expression of the new Guilt-Free shopping proposition that McArthurGlen
launched last spring to jumpstart the job of appealing to a pan-European
audience and zoning in on well-to-do consumers.
Harvey Bertram-Brown and Carolyn Corben, also known as Harvey & Carolyn
of Crossroad Films, were the creative directors. The couple have worked
with Elton John, George Michael, Scissor Sisters and, most recently, Girls Aloud
on their video, “Chemistry.” The soundtrack was provided by French duo The
Lovers, Marion Benoist and Fred de Fred. And the high-fashion images – shot
by world-renowned fashion photographer Kristian Schuller – set the tone for the
print ads. Schuller’s work has been in Vogue, Tatler and Marie-Claire.
Laura Wenke, chief marketing officer McArthur-
Glen UK Ltd, said, “This campaign not only builds
on the equity created in Guilt-Free shopping, it also
delivers a consistent strategy across all of our shopping
centres in Europe.” Wenke added that the campaign
could be efficiently and easily adapted for each outletcentre
market.
The polished creative – evocative of the French
film “Amélie” – features a beautiful young woman
perkily cooking dinner and choosing her wardrobe
Laura Wenke
for a romantic, candle-lit evening at home. At the
end, the viewer sees that her dinner partner is a
pair of sexy, strappy brown stilettos, purchased, of course, at a McArthurGlen
Designer Outlet Village.
In marketing terms, the creative captures the abundance, style and quality
of designer clothing and accessories available at McArthurGlen centres. The
creative will run as a 30-second television ad and will also be shown in cinemas
– a first for McArthurGlen.
“In the very competitive universe that is retail,” Wenke said, “this campaign
has broad appeal, yet it is decidedly targeted to a more affluent customer base,
all of which is intended to have a powerful impact on our business.”
The TV, cinema, radio, print, outdoor, point of sale, e-newsletter to VIP customers
and the updated Guilt-Free shopping web sites, will roll out across the UK,
France, Austria, Italy and the Netherlands at the end of March. Each ad is localised
to make the standout “Guilt-Free Shopping” proposition synonymous with shoppers’
nearest McArthurGlen Designer centres, therefore driving footfall.
McArthurGlen operates 16 designer outlet villages totaling nearly 4 million sf.
Six other centres are in development, in Ireland, Germany, Greece, Italy, Austria
and France.
20 InternatIonal outlet Journal u Summer 2007

ardennes a haven for mountain bikers
Dense forests and hilly terrain are just
what mountain bikers are attracted
to, so it’s little surprise that the
best in the sport will find themselves in the
Ardennes later this summer.
On 12 August Ardennes Outlet Centre in
Viviers, Belgium, will be the starting point
for the 105-km World Championship Cross-
Country Marathon for mountain biking.
Norwegian racer Gunn-Rita Dahle,
holder of the 2004 Olympic gold medal
in the sport and considered to be the best
mountain-biker in the world, is helping to
help promote the event, which is expected
to draw 2,000 international participants.
Last year the centre did such a good job
playing host to the Belgian Championship
Marathon that it was named the venue for
the prestigious World Championship, a
feeder race for the 2008 Olympics.
Of course, the centre will remain open for trading during the
one-day event – a Sunday. n
Global PeoPle
McArthurGlen adds execs,
creates three new positions
McArthurGlen, Europe’s largest owner, developer and
operator of designer outlet villages, has appointed Tony
Vasishta, formerly with Tesco, to international development
director, and Giovanni Galbiati to
managing director of Italy and regional
director of Southern Europe.
Both men are joining the company for
the first time and are assuming newly
created positions. Steffano Stroppiana,
who has been with McArthur-
Glen since 2000, will also take on a
new role.
Tony Vasishta
Giovanni Galbiati
Steffano
Stroppiana
Vasishta brings more than 20 years
experience in the procurement and
property industry, having served in
those roles for Woolworth, TK Maxx,
Boots Properties, and, most recently,
as development director at Tesco.
He will be based in London and will
work alongside Gary Bond, CEO of
McArthurGlen European Development
Ltd.
Galbiati, who is a luxury-brands
specialist, will work out of the company’s
new regional office in Rome,
overseeing 83,350 m² at three centres
in Italy: Serravalle (south of Milan),
Castel Romano (southeastern outskirts
of Rome) and Barberino, near
Florence. A particular focus will be
to oversee the region’s expansion with
the addition of planned centres in the
Venice, Naples and Athens markets.
Galbiati worked with Gianni Versace
from 1989 to 2004, mostly as group
general manager.
22 InternatIonal outlet Journal u Summer 2007
Norwegian racer Gunn-Rita Dahle, considered to be the
best mountain-biker in the world, visited The Comer
Group’s Ardennes Outlet Centre this spring.
In a related move – to another newly created role
– Stefano Stroppiana, previously managing director for
McArthurGlen Italy and European leasing director, has
been promoted to partner in charge of group business development
and companywide leasing director. Also based
in Rome, he will forge opportunities in new markets and
lead the company’s brand strategy across its 16 existing
designer outlet centres in the UK, Italy, France, Germany,
Austria and the Netherlands.
Stroppiana’s previous retail experience includes stints
with Mitsukoshi, Toyota and American Express.
Freeport, awaiting new owner,
names two new centre directors
Monaco-based Freeport, which might or might not have a
new owner any time soon – has appointed new centre directors
ˇ
at its schemes in the Czech Republic and Portugal.
Filling the post at Freeport Excalibur is Vladislav Hypš,
a former retailer who has managed operations in Austria,
Czech Republic, Slovakia and Germany. He most recently was
general manager of Kika, one of the major anchor retailers in
the largest shopping destination in Czech Republic – Letnany
Centre in Prague.
Nuno Oliveira, who has taken over management of Freeport
Alcochete, gained shopping-centre experience with Sonae
Sierra. Most recently he was in retail and marketing with
L’Oreal and Apple.
According to Richard Broadhead, retail operations manager,
“These appointments mark the start of a new era for our Lisbon
and Excalibur centres. We are committed to recruiting talented
individuals from the local and regional markets as part of our
future business plan to ensure that we maximize the potential
of our centres through solid understanding of consumer and
retail trends in each location.”
At IOJ press time, property equity firm Carlyle was attempting
to renege on its e227.3 million offer to acquire Freeport.
Neither side would give any details regarding the issue.

Icsc honors two outlet centres
T wo
factory outlet centres were among those honored during the ICSC
European Conference held in April in Warsaw. Monaco-based Freeport
received a Solal Marketing Merit Award for a campaign at its center in
the Czech Republic, and McArthurGlen received a European Shopping Centre
Commendation for its centre in Barberino, Italy.
Freeport markets a turnaround
When it opened in 2003, the 22,600-m²
Freeport Excalibur was the first outlet
centre serving the Czech Republic.
Located in South Moravia near the Austrian
border, the centre should have benefited from a
large, affluent catchment. But it underperformed,
resulting in decreasing turnover, rents and footfall.
By 2006 a shopper study proved that the centre
needed help.
In September 2006, Freeport launched “Freeport
Lowest Price Guarantee,” promising shoppers to
refund the difference if they found better deals
anywhere in Austria or the Czech Republic. The
programme required retailers to commit to discounts
of at least 30 percent, and meetings and presentations
were scheduled with store managers and their corporate
officers over a six-week period. The campaign
was adapted to include tenant feedback.
A striking campaign logo was created and applied consistently
across all media and throughout the mall, as were information
leaflets. The importance of the Austrian consumer was stressed
to all tenants, who actually supported the campaign.
Exit interviews with 871 shoppers (51 percent from Austria, 49
percent from Czech Republic) showed that the consumer “value
rating” rose to 82 percent from 14 percent; the retail conversion
rate rose to 90 percent from 46 percent; catering increased to 57
McArthurGlen applauded for Barberino centre
The European Shopping Centre Awards honor a cross-section
of retail properties that best exhibit a variety of shared traits.
These top centres blend with and complement their communi-
To inform shoppers of “Freeport Lowest Price Guarantee,” logos and
flyers were applied throughout Freeport Excalibur.
Commended in the Factory Outlet Centre category, McArthurGlen Designer Outlet Village
Barberino was designed to keep shoppers comfortable, well-fed and happy with
top brands at value pricing.
percent from 25 percent, and the recommendation level among
Austrian consumers rose to 94 percent from 56 percent. December
2006 sales rose 22 percent over the previous year.
Professional recognition for the campaign went to Richard
Broadhead, Freeport retail operations director, and Dita
Stankova, the centre’s marketing manager.
The deadline for entries for the 2008 Solal marketing awards
is April 2008.
ties, culturally, socially and economically. Furthermore, they
reflect the traditions of their communities with new energy and
vigor, setting high standards for excellence.
McArthurGlen Designer Outlet
Village in Barberino, Italy was
honored with a prestigious 2007
European Award Commendation
in the Factory Outlet Centre
category. The 19,211-m² centre,
which opened in March 2006, is
30 km north of Florence and is
McArthurGlen’s third project in
Italy. The centre’s design takes its
inspiration from the architectural
styles of renaissance Tuscany with
sun-washed colours enhanching
arches, brick streets, piazzas for
al fresco dining and footbridges
over the river that runs through
the scheme. The centre has 107
stores, bars and restaurants, a
playground and many other services
and facilities.
Summer 2007 u InternatIonal outlet Journal 23

Sales revenues for 2006 at
FoxTown Factory Stores in
Mendrisio, Switzerland, increased
by 16 percent to e115.4 million,
according to the centre’s owner,
Studio Silvio Tarchini. The
positive trend continued during
the first quarter of 2007 with 21
percent increase over the same
period of 2006.
Because of the good result, an
expansion that will add 30 tenants
to its current roster of 120
is planned to open in spring 2008.
The luxury sector accounted
for 36 percent of the increase,
affirming the centre’s wide and
varied range of fashion brands,
including Armani, Dior, Dolce
& Gabbana, Etro, Gucci, Hugo
Boss, Iceberg, Nike, Prada,
Salvatore Ferragamo, Valentino,
Versace and Yves Saint Laurent. Other
prêt-à-porter brands accounted for 23
percent of the increase and a significant
advance was also seen in the casual and
sports sectors.
More than 3 million visited the
269,106-sf centre in 2006, with more
sales growth good reason
for mendrisio expansion
2 InternatIonal outlet Journal u Summer 2007
Thanks to a robust sales growth of 16 percent in the last year, FoxTown Factory Stores
in Mendrisio, Switzerland will add 30 tenants in an expansion due to open in 2008.
than 60 percent coming from Italy; the
remainder were primarily from other
parts of Europe, China and Japan.
Because the center is open seven days
a week, nearly half come on the weekends,
often with their families.
FoxTown Mendrisio opened in 1995
Phase 1 of Mondovicino Factory Outlet in the Italian province of Cuneo, is
scheduled to open in March as part of a 390,000-m² mixed-use recreation and
entertainment development. The spectacular site is just a few kilometers from
the Maritime Alps and the Ligurian Sea, a traditional destination for tourism
and shopping for the inhabitants of the Côte d’Azur.
as the first FOC in Southern Europe.
In the following four years, Tarchini
opened two more centres in Switzerland,
at Murgenthal and at Rümlang,
and in June 2006 the developer opened
FoxTown Shanghai in China (see related
story, page 14).
Leasing Notes
u Dalton Park, a 150,000-sf outlet
mall in North Yorkshire, England,
recently added more than 10,000-sf
of new tenants, including Nike, Fila,
Professional Cookware, Cadbury and
Alexara, the classic women’s fashion
brand. Dalton Park is owned by ING
Real Estate Development UK and
managed by Pantheon Retail Limited.
Leasing is managed by Head Retail.
u Mexican bar and restaurant
chain Chiquito will open a two-level
unit this summer at Gunwharf Quays,
Land Securities’ e294 million mixeduse
development on the waterfront at
Portsmouth Harbour, England. Chiquito
signed a 25-year lease. Gunwharf
Quays has posted a 20 percent growth
in trading over the last two years, and
sales for the 12 months ending 31st
March 2007 were up 8.5 percent.
u Park Avenue, the factory-outlet
portion of Resolution Property’s Megapark
Barakaldo near Bilbao, Spain,
is 58 percent pre-let with tenants including
Mango, Nike SuperSports,
Saturn, Levis, Bide Onera, Ayestaran,
(See leasing notes, page 25)

Save the Date!
European Outlet conference
scheduled for 18-19 October
The Second Annual European Factory Outlet
Conference, sponsored by ICSC and IOJ, will be held
18-19 October, 2007, in London at the Landmark Hotel.
The conference resumes the excitement generated
by the first one, with two days filled with educational
sessions covering issues and ideas in this unique sector
of the shopping center business, plus networking
receptions and meal events.
Like the 2006 conference, the 2007 symposium will
feature dozens of panelists, all key executives in the
global factory outlet industry. Preparations are starting
soon on the programme, and organizers welcome
participation from everyone in the industry. Further
details on the programme will be coming out soon, so
stay tuned.
The luxurious Landmark Hotel, next to London’s Regent’s Park and directly opposite
Marylebone Station, will provide a stunning backdrop for the conference.
Book before 14 September 2007 to take advantage of early bird rates and to
guarantee your place. Seats are limited!
Early Bird rates:
ICSC Member e515.00 + e91.00 VAT = e606.00
Non-Member e662.00 + e116.00 VAT = e778.00
Standard rates:
ICSC Member e662.00 + e116.00 VAT = e778.00
Non-Member e810.00 + e142.00 VAT = e952.00
To register visit www.icsc.org/2007eos or call +44 20 7976 3102. For advertising and
sponsorship opportunities, contact Sally Stephenson at sstephenson@icsc.org or call
+1 847 835 1617.
Leasing Notes
(Continued from, page 24)
Desigual, For Pepe & Tommy, Purificacion
Garcia, Senoretta and Adventure
Territory. REALM is handling
leasing of the 215,000-sf Park Avenue,
scheduled to open this summer.
u The 5,000-m² phase 2a of Batavia
Stad Outlet Shopping in Lelystad,
Netherlands, is due to open 12 July,
2 InternatIonal outlet Journal u Summer 2007
bringing the scheme’s GLA to 20,000
m². Tenants joining the centre in the
expansion include Marlboro Classics,
Geox, Riverwoods, Trespass and
Marc Picard; current brands at Batavia
Stad include Nike, Replay, Villeroy &
Boch, Basler, Lacoste and Benetton.
Phase 2b, comprising another 5,000 m²,
will open in late 2008. The six-year-old
centre was acquired in December 2006
by Bakkenist & Emmens. n
As seen is this photo taken in April, progress at Premier Outlets Center in
Ringsted, Denmark is right on schedule, according to GVA Grimley Outlet
Services, which is handling leasing and management of TK Development’s
12,000-m² scheme. The centre, 45 minutes south of Copenhagen – and
Denmark’s first FOC – is due to open in October.
IOJ Calendar
Asia Expo
17-19 July, Suntec Singapore,
Singapore
DEADLINE for ICSC European
Shopping Centre Awards 2008
6 September (entry forms
available at www.icsc.org)
DEADLINE for 2007 Fall IOJ
12 September (for stories and
photos)
VRN Fall Outlet Retail
Convention
27-28 September, Sheraton
Meadowlands Hotel and
Conference Center
East Rutherford, N.J.
2007 ICSC World Summit
3-5 October, Cape Town, South
Africa
European Outlet Conference
18-19 October, London
Landmark Hotel
DEADLINE for Solal Marketing
Awards 2008
April 2008 (entry forms available
at www.icsc.org)
JOhN l BucKsBaum, scsm
Chairman
mIchaEl P. KERchEVal
President and CEO
RuDOlPh E. mIlIaN, scsm, scmD
ICSC Senior VP
Jay sTaRR
ICSC Senior VP
FLORIDA OFFICE +1 727 781-7557
FAX +1 727 781-9717
29399 U.S. Hwy. 19 N., Suite 370
Clearwater, FL 33761
lINDa humPhERs
Editor in Chief, ext. 472
lhumphers@icsc.org
RaNDy gDOVIN
Art Director, ext. 451
rgdovin@icsc.org
KaREN KNOBElOch
Advertising Prod. Mgr., ext. 441
kknobeloch@icsc.org
sally sTEPhENsON
Senior Advertising Executive
+1 847 835-1617
Fax: +1 847 835-5196
sstephenson@icsc.org
International Outlet Journal is a quarterly publication for
the non-U.S. factory outlet industry. Copyright © 2007