European Outlet Sector Grows - Value Retail News

COVER STORY 

European Outlet 

Sector Grows 

Despite the economy, sales increase 

Plus: 

Challenges and Trends report 

Helping outlet brands perform 

Global 

EXPANSION 

McArthurGlen’s Veneto Designer Outlet 

FHD plans 16 centres in Russia 

Neumünster taps McArthurGlen

PAGE 12 

STAFF 

MARY LOu FIALA 

ICSC ChaIrman 

JAAP GILLIS 

ICSC ChaIrman, EUrOPEan 

advISOry bOard 

MICHAEL P. KERCHEVAL 

ICSC PrESIdEnt and CEO 

RuDOLPH E. MILIAN, SCSM, SCMD 

ICSC SEnIOr vP 

JAY STARR 

ICSC SEnIOr vP 

ICSC EuROPE 

London, +44 20 7976 3100 

icsc.europe@icsc.org 

FLORIDA OFFICE 

29399 U.S. hwy. 19 n., Suite 370 

Clearwater, FL 33761 

+1 727 781 7557 

LINDA HuMPHERS 

Editor in Chief, ext. 472 

lhumphers@icsc.org 

TOM KIRwAN 

Senior Editor, ext. 471 

tkirwan@icsc.org 

RANDY GDOVIN 

art director, ext. 451 

rgdovin@icsc.org 

SALLY STEPHENSON 

Senior advertising Executive 

+1 847 835 1617 

Fax: +1 847 835 5196 

sstephenson@icsc.org 

KAREN KNObELOCH 

advertising Prod. mgr., ext. 441 

kknobeloch@icsc.org 

International Outlet Journal is a publication for the 

non-U.S. factory outlet industry. Copyright © 2008 

PAGE 18 

PAGE 22 

CONTENTS 

Vol. 5 No. 2 Spring 2009 

InsIde 

4 Outlet Sector Grows 5 Percent 

8 Outlet Industry Challenges & Trends 

12 Helping Outlet Brands Perform 

13 Outlet Sales Holding Strong 

16 Colombian Outlet Centre Opens 

16 FHD Plans 16 Centres in Russia 

17 McArthurGlen Tapped For Germany 

17 Planned Centre Updates 

18 Leasing News Throughout Europe 

20 News Notes: Marketing and Awards 

22 New Owners: Barberino, Zweibrucken 

23 New Neinver CEO, other People News 

24 Report from Cannes 

26 With This In Mind: Clive Woodger 

26 IOJ 2009 Calendar 

SpriNg 2009 InternAtIOnAl Outlet JOurnAl

EUrOpEAN SOi 

STATE OF THE OuTLET INDuSTRY 

European outlet sector 

grew 5 percent in 2008 

by LINDA HuMPHERS 

Editor in Chief 

Information gathered by IOJ from 

outlet-centre developers around the 

world shows that the industry in Europe 

is experiencing steady, stable growth, 

a sure sign the sector is maturing well. No 

longer a sector to be ignored and overlooked 

by the rest of the shopping centre 

industry, outlet retailing has proven itself a 

sturdy and reliable alternative distribution 

channel for brands. European executives 

and IOJ’s statistics also show that outlet retailing 

is still growing, and in this economy, 

new brands will support that growth by 

opening outlet divisions as they adapt to 

the changing consumer. 

InternAtIOnAl Outlet JOurnAl SpriNg 2009 

The following statistics come from 

the databases gathered for the Global 

Outlet Project Directory, published annually 

by ICSC. Bear in mind that ICSC/IOJ 

defines an outlet centre as one with at least 

50 percent outlet tenancy. 

Among the findings for 2008: 

n The total of 123 outlet centres 

comprising 25.9 million sf in 21 countries 

in Europe, Turkey and Dubai represents 

5 percent growth over 2007’s 117 centres 

that totaled 24.3 million sf. 

n The average European outlet centre 

GLA is 210,567 sf. 

n These 123 centres are owned by 63 different 

companies, so it is a diverse business. 

n Of the 63 owners, 13 companies own 

more than 50 percent of the centers and 

control more than 50 percent of the GLA. 

n The 20 largest centres total more 

than 8.2 million sf, or put another way, 16 

percent of the 123 centres account for 32 

percent of the total GLA. There are 14 

owners of the 20 largest projects, which 

means that one fifth of the owners control 

a third of the centres. The 20 largest centers 

are found in 11 countries. 

n 35 leasing firms handle leasing for 

one centre apiece, for a total of 6.8 million 

sf; 17 other leasing companies lease the 

other 88 centers totaling 19.1 million sf. 

n Eight companies are responsible 

for leasing more than 14.5 million sf of 

GLA in 63 outlet centers, thus, 15 percent 

of leasing companies lease more than 50 

percent of centers. c 

2008 largest European Outlet Center Portfolios 

Updated thru Feb. 6, 2008 

Portfolio owner leasing company Portfolio GlA no. of centers 

in portfolio 

Henderson Global Investors mcarthurGlen Europe 3,290,126 12 

Value Retail PLC value retail PLC 2,120,410 10 

Neinver neinver 1,863,190 10 

Concepts & Distribution Concepts & distribution 1,338,730 8 

Fashion District Group Fashion district Group 1,323,900 3 

Hermes Real Estate Investment rEaLm Limited 1,224,000 8 

Freeport Freeport 1,211,000 3 

McArthurGlen Europe mcarthurGlen Europe 1,004,554 5 

Al Ahli Group al ahli Group 750,000 1 

unibail-Rodamco Unibail-rodamco 742,000 4 

Fashion House Developments Cb richard Ellis 720,810 4 

DEGI Green Partners 659,100 2 

Land Securities hEad retail 500,000 2 

1 companies 16,7 7,820 72 

21% of the total number of 56% of total 59% of total 

european outlet-centre owners European number of 

outlet GLa European 

* Includes dubai and turkey outlet centers 

Source: 2008 Global Outlet Project Directory

EUrOpEAN SOi 

20 Largest European Outlet Centers 

Center location Owner leasing Opened GlA 

Freeport Lisbon Lisbon, Freeport Freeport 2004 807,300 

Designer Outlet Portugal 

Dubai Outlet Mall dubai, United al ahli Group al ahli Group 2007 750,000 

arab Emirates 

Fashion District rome, Italy Fashion district Fashion district 2003 484,400 

Valmontone Outlet Group Group 

Optimum Outlet Center ankara, turkey volga dis. t/ C alkas Consulting 2004 457,500 

ve Eglence Merkezi ve dan. Ltd. 

Szi Consulting 

Fashion District bari, Italy Fashion district Fashion district 2005 430,500 

Molfetta Outlet Group Group 

Fashion District mantova Fashion district Fashion district 2003 409,000 

Mantova Outlet (bagnolo San vito), Group Group 

Italy 

Parndorf Designer Outlet vienna henderson Global mcarthurGlen 1998 405,800 

(Parndorf), austria Investors European dev. Co. 

Serravalle Designer Outlet milan henderson Global mcarthurGlen 2000 403,600 

(Serravalle), Italy Investors European dev. Co. 

Cheshire Oaks Designer Outlet Ellesmere Port, henderson Global mcarthurGlen 1995 395,613 

Cheshire, England Investors European dev. Co. 

Franciacorta Outlet Village milan (brescia), Italy dEGI Franciacorta Green Partners Srl 2003 380,000 

Festival Park Mallorca mallorca Es mirall Es mirall 2002 367,700 

(marratxi), Spain developments Sa developments Sa 

Marques Avenue Troyes troyes (Pont-Ste-marie), Concepts & Concepts & 1993 366,000 

France distribution distribution 

Olivium Outlet Center Istanbul, turkey Emintas-Ileri mensucat alkas Consulting 2000 363,800 

Galleria Moda Prague (tuchomerice), b.Consulting SrL b.Consulting SrL 2008 333,700 

at Praha Airport Czech republic 

Vicolungo Outlets milan (novara - neinver Italy neinver 2004 322,900 

vicolungo), Italy 

The Galleria Outlet Centre hatfield, yorkshire, Land Securities hEad retail 1998 320,000 

England 

Troyes Designer Outlet troyes (Pont-Ste- henderson Global mcarthurGlen 1995 317,450 

marie), France Investors European dev. Co. 

Outlet Center Izmit Istanbul (Izmit), turkey bayraktar holding bayraktar Gayrimenkul 1997 309,800 

Gelistirme a.S. 

Roermond Designer Outlet roermond, henderson Global mcarthurGlen 2001 301,000 

netherlands Investors European dev. Co. 

Livingston Designer Outlet Edinburgh (Livingston), mcarthurGlen mcarthurGlen 2000 290,490 

Scotland European dev. Co. European dev. C 

Source: 2008 Global Outlet Project Directory 

Largest European* Outlet Center Leasing Companies 

(over 1 million sf) 

Company GlA leased no. of Centers leased 

mcarthurGlen Europe 4,095,580 16 

value retail PLC 2,120,410 10 

neinver 1,863,190 10 

Concepts & distribution 1,338,730 8 

Fashion district Group 1,323,900 3 

rEaLm Limited 1,310,000 9 

alkas Consulting 1,215,300 4 

Freeport 1,211,000 3 

8 companies 1 .5 million 6 centers 

* Includes turkey 

Source: 2008 Global Outlet Project Directory 

6 InternAtIOnAl Outlet JOurnAl SpriNg 2009 

8,216,55

TrENDS & CHALLENgES 

Outlet execs speak out 

on challenges, trends 

In this most unusual of times, IOJ talked with 

several key outlet executives about the challenges 

their companies face in the coming 

months, as well as the trends they believe will 

shape the industry’s future. 

The executives are: 

Gary bond, CEO, McArthurGlen 

Development Co., 

developer of 17 

designer outlet 

villages throughout 

Europe, with 

planned centres in 

Austria, Germany, 

Greece and Italy. 

Neil Thompson, CEO, Fashion 

House Development, 

four outlet 

centres in Poland 

and Romania; 

planned centres in 

Romania, Russia 

and the Ukraine. 

David williams, Fund Manager, 

Henderson Global 

Investors; operator 

of the European 

Outlet Mall 

Fund, owner of 

12 outlet centres, 

including 

11 developed by 

McArthurGlen. 


Stefano Stroppiana, Managing 

Director/Partner, 

Premium 

Retail, Srl, startup 

development 

company in 

Italy. 

John Drummond, Managing 

Director, Guinea 

Group, developer 

of outlet 

centres in Belfast, 

N. Ireland, 

and Kendal, 

England. 

willem Veldhuizen, Managing 

Director, Stable 

International, 

developer of 

Batavia Stad in 

The Netherlands, 

and two 

planned centres 

in Germany. 

IOJ: What are the most pressing 

challenges facing your company 

in particular, and the outlet 

sector in general, in the coming 

months? 

GARY bOND: We’re lucky in 

that we have good development 

already under way. Venice is open 

and we’re into the second phase; 

Berlin opens in June; Naples and 

Salzburg open at the end of the 

year. We’re in ground work in 

Athens and waiting for approvals, 

and we’re opening a fourth phase 

at Parndorf. We have an amazing 

amount of work to keep us busy, 

but we have to focus on maximising 

the new projects and securing 

a good tenant line-up. The tenants 

are cautious about taking as much 

space as they used to, and they’re 

negotiating a bit harder. 

NEIL THOMPSON: There has not 

been as much effect on the Polish 

economy, but we are just starting 

to feel the effects of slowing 

manufacturing. 

DAVID wILLIAMS: The strength 

of the wider economy, especially 

its impact on rising unemployment, 

is the greatest challenge to 

the sector. Investors are naturally 

more cautious, and any new acquisition 

takes longer. Getting access 

to fresh bank finance remains 

challenging and we expect this to 

continue through 2009. 

STEFANO STROPPIANA: There

is a lack of consumer confidence 

that has led to a decline in purchasing. 

In this situation, most 

companies that have not been able 

to achieve financial strength in 

the last years are resizing and 

restructuring. 

JOHN DRuMMOND: The major 

challenge is the downturn in consumer 

discretionary spending 

coupled with the erosion of outletcentres’ 

price advantage caused by 

full-price discounting in the high 

street and shopping malls. The 

high level of retail failures in the 

UK is both increasing the amount 

of vacant space available and 

reducing the number of tenants 

who are interested in expanding. 

The general economic situation 

is having a detrimental effect on 

the rental terms and overall deal 

terms that retailers/tenants are 

prepared to pay. 

wILLEM VELDHuIzEN: The biggest 

challenges for our outlet 

development is similar to those 

for the entire real estate industry: 

getting financing for new projects 

squared away. 

IOJ: What specifically is your 

company doing to meet those 

challenges? 

bOND: We’re focusing our efforts 

and being more cautious. We’re 

not going to rush into the higher 

risk locations like Turkey and 

Russia at this time. 

THOMPSON: We’re making some 

tactical changes to our marketing 

campaigns in Poland to place 

greater emphasis on the brand 

and value aspect of our offer, and 

to stress the differential between 

our offer and traditional shopping 

centres. 

wILLIAMS: The EOMF team has 

always maintained a positive relationship 

with its stakeholders. This 

good relationship is due to the 

strong returns the fund offered 

over recent years and their trust in 

our fund management programme. 

In 2009 we will be looking for more 

opportunities that meet our criteria. 

Working closely with our partners 

on the ground – McArthurGlen 

– we continue to invest in our current 

portfolio. The focus of our 

investment is asset management, 

as well as marketing and customer 

loyalty programmes to ensure 

we’re always the consumer’s first 

choice. 

STROPPIANA: Our group, as 

many others with a solid financial 

background, sees several opportunities 

to invest real money for 

substantial equity, thus reducing 

significantly the impact of debt 

for each project. This is the right 

time to acquire a relevant market 

advantage. Also property management 

is now more important than 

ever, so we will use our sophisticated 

solutions to minimize operational 

costs as we increase our 

marketing spend. 

DRuMMOND: We have refocused 

and amended our consumer 

marketing campaign, including 

shifting resources from below 

the line activity to above the line. 

We have devised totally new campaigns 

for key selling times such 

as Valentines Day, Mother’s Day 

and Easter. At Easter to widen the 

customer draw we will be holding 

a French Food Fayre in the centre 

with over 20 different French food 

providers/artisans, plus Northern 

Ireland producers. We are also 

increasing the number of initiatives 

that we operate jointly with 

our retail partners, with an aim to 

increasing turnover and profitability 

for both partners. 

IOJ: How are your company’s 

particular strengths helping to 

stay the course these days? 

bOND: We don’t have to expose 

ourselves to undue risks, and we 

watch our budgets and bank debt. 

As a developer and a manager, 

we’re in a strong position, whereas 

the one-offs will struggle. 

THOMPSON: We have a standard 

outlet concept in terms of 

brand and value but we believe we 

deliver it better for the consumer 

and our retail partners. We really 

help our retail partners manage 

their value message on a day-today 

basis. We have the balance 

right between international and 

domestic brands and our business 

concept is especially attractive for 

franchised brands as well as the 

brand owners themselves. We 

now work even more closely with 

our tenants, encouraging them to 

quickly move the growing surplus 

from their in-line stores into our 

outlet stores. This has been paying 

dividends for all of us. 

wILLIAMS: The strength of the 

EOMF is our strategy of continually 

investing in prime assets or selecting 

those that have the potential to 

be prime. We are entrepreneurial 

and are continually looking 

for opportunities. The Outlet Mall 

(Continued on page 10) 

SpriNg 2009 InternAtIOnAl Outlet JOurnAl 9

EOC SESSiONS 

(Continued from page 9) 

Fund remains relatively stable even 

in these difficult times – we are 

still experiencing growth across 

our portfolio. We continue to stick 

to our business model, investing 

well in targeted marketing and 

maintaining a strong tenant mix 

to ensure the brand offer remains 

attractive to our loyal customers. 

VELDHuIzEN: We have a healthy 

equity base and equally healthy 

partners in all our projects. 

IOJ: How long do you expect 

challenges to affect how you operate 

your company? 

bOND: Approvals and the economy 

will always be a challenge. 

Approvals are the lifeblood for our 

expansions. We’re being countercyclical, 

so I think we’ll be okay 

through this period. 

THOMPSON: Difficult to tell for 

the economy, but we have 18-24 

months in mind. 

wILLIAMS: Retail is a fluid industry, 

always moving and changing. 

The Fund looks to anticipate change 

in both the economy and shopping 

patterns, and we recognise 

that these challenges will never 

stop. Right now our objective is to 

maintain income through investment 

and continue to work closely 

with McArthurGlen and our brand 

partners. 

STROPPIANA: We’re moving forward 

now. We’re planning and investing 

in several projects according to a 

four-year expansion plan. 

DRuMMOND: At this point I can 

see no reason to be optimistic in 

the short- or mid-term future, and I 

believe we are going to be in a very 

challenging economic climate for 


at least the next two years. 

VELDHuIzEN: Life could get back 

to normal within two or three years, 

but we could be in a much more 

prolonged economic downturn. In 

either situation the outlet industry 

will have great challenges, as well 

as opportunities that we intend on 

seizing. 

IOJ: On a scale of 1 to 10, how do 

you rate today’s challenges? 

bOND: It’s hard to rank them. 

We don’t worry about that. We just 

focus on dominating the market, 

staying the best and letting people 

know that we are the best. 

THOMPSON: We really see challenges 

as an opportunity. We have, 

in fact, benefited from the slowdown 

as it appears that consumer behavior 

is leading to a greater preference 

for outlet shopping – our centres are 

reporting double-digit growth. We 

view this as an opportunity to differentiate 

ourselves further. 

wILLIAMS: Of course the economy 

must rate as the biggest challenge 

to every business including 

the EOMF. However, I wouldn’t rate 

the challenges we face on a scale 

of 1 to 10 as we give all of them the 

highest priority to be able to succeed 

in the market. 

VELDHuIzEN: The economy is 

No. 1 for us, as it should be for 

everyone because it impacts everything. 

IOJ: What trends do you see for 

the european outlet industry in the 

foreseeable future? 

bOND: There will be less demand 

for new development from new 

companies, with only the bigger 

players succeeding. There is a 

lot of distressed property on the 

market, which in time will be worth 

looking at for acquisition. 

THOMPSON: We’ll see greater 

stock levels for the next two seasons 

before manufacturing levels 

eventually slow to meet the fall in 

demand. We’ll also see a change in 

the consumer mindset as value is 

placed at the forefront of purchasing 

decisions and branded bargains 

once more become sexy. 

wILLIAMS: The sector will 

emerge as one of the strongest 

when compared to other property 

asset classes. Once capital 

becomes more available I see 

an increase in new outlet supply 

across Europe. During the current 

economic environment I see an 

increase in the number of assets 

coming to the market. Seeing the 

success of major brands in our 

centres, other international brands 

will see the benefit of an outlet 

distribution channel as part of their 

overall business model. 

DRuMMOND: I believe the 

European outlet industry will continue 

to be a major retail force, but 

I anticipate some weak centres will 

fail if the current exchange rate 

situation continues to exist between 

the pound and the euro. Retailers 

will suffer increased merchandise 

costs and shopping patterns within 

Europe will be varied by currency 

exchange rates. Also, there will be 

a trend for shorter-term lettings and 

all-inclusive turnover rent deals. 

VELDHuIzEN: Further consolidation 

will be inevitable, and the 

focus for growth and strength will 

be in Northwestern Europe. The 

outlet party in Central-Eastern 

Europe will end. c

THE ECONOMY 

top challenge this year: 

Helping brands perform 

Value Retail’s major 

focus in this economy 

is to enrich on-site 

tenant programmes. 

by LINDA HuMPHERS 

Editor in Chief 

Nobody is claiming clairvoyance, 

certainly not Scott Malkin 

and his Value Retail team. But 

the company’s long-term emphasis on 

coaxing top performances from tenants 

in their nine outlet villages looks like the 

developer has been preparing for an economic 

downturn for quite a while. 

“In response to the opportunities 

that we felt made the most sense in the 

market,” Malkin told IOJ, “we ceased 

new development three years ago and 

froze expansions of existing projects 18 

months ago. In this sense, we did perhaps 

unwittingly anticipate an economic 

downturn. Certainly, our focus for the 

past three years has been on driving productivity 

rather than increasing our size. 

“We do not build to sell to institutional 

owners, which is the norm in Europe. 

Therefore, the choices we make at the 

outset must last us a lifetime.” 

One facet in attaining that goal at each 

outlet village is an on-site retail team – as 

many as six staffers – whose primary purpose 

is to work with tenants, commencing 

before the brand opens its first store. 

When the global economy suddenly 

falters, the importance of maintaining a 

serene, supportive atmosphere for brands 

takes on new importance. 

“It’s the proverbial tsunami out there,” 

according to Malkin, chairman 

of London based Value Retail, 

developer of designer outlet 

villages in the major cities of 

Europe. “The brands are in 

a complicated state. They’re 

expressing anguish. They’re 

adapting or scrambling or in 

denial. So we’re working really 

hard to help them maintain 

their balance by upgrading our 


Eighteen months ago, Value Retail began preparing for the economic slowdown by 

ceasing new developments and halting expansions at its nine outlet centers. Instead, it is 

helping tenants develop their brands. 

services and adding strength and quality 

to our staffing.” 

Unlike many shopping-centre landlords, 

Value Retail hasn’t been hit by tenant 

pressure to lower rents because it operates 

on percentage rents. The pressure of 

percentage rents, of course, is to make sure 

tenants continue to pump out strong sales. 

“Business has been good,” Malkin 

says. “Our tenants have good levels of 

product; we have increased footfall and 

increased spend. Our business has performed 

well, and continues to perform in 

line with our expectations.” 

In fact, the Value Retail portfolio performed 

strongly in 2008: 

n Fourth quarter comp sales rose 

again, resulting in an annual average 

increase of 8 percent 

“the brands 

are in a 

complicated 

state,” 

Malkin says. 

n Footfall increased 7.5 percent 

n Spend per visitor increased more 

than 8 percent 

In January, business continued to be 

solid, Malkin says, adding that despite 

steep, competing markdowns at full-price 

stores, Value Retail scored high double-digit 

growth in both footfall and comp sales. 

While the quality of the tenant mix, 

customer service and retail support clearly 

show the developer’s strength, Value Retail 

sees hurdles ahead. 

“Our biggest challenge is to help those 

brands that don’t know how to deal with 

help,” Malkin says. “Finance directors 

are now making decisions, often cutting 

staff across the board, regardless of the 

productivity of individual locations.” 

Malkin says high-end, selective brands that 

haven’t previously entertained outlet retailing 

are now eying the outlet channel. 

“They’re saying, ‘okay, we see the world 

is headed toward greater efficiency 

in distribution, and that the high-end 

outlet village is the progressive path to 

take.’ They’re also now focusing on the 

aspirational shopper to drive productivity 

and cash flow while protecting their 

brand positioning.” 

Luxury brands particularly need

help redeploying their goods, he says, 

“because they don’t have a tradition of 

high-volume distribution. Last year the 

senior people in these brands were commuting 

to China and India envisioning 

huge new store openings. This year their 

priority, and ours, is to make their existing 

business more powerful.” 

Even existing outlet chains that have 

decreased expansion are opting to 

improve their operations, Malkin says, 

“which brings them back to what we do: 

help them improve their positions.” 

Although the future is an unknown, one 

thing is certain, he says: Retailing will change. 

“Brands are already re-inventing their 

business models,” he says. “For the next 

several years we’ll be seeing a reconfiguration 

of the retail industry. We’re definitely 

seeing the trend of guilt-free shopping, 

which means that the shopper wants to 

believe in the brand and the quality it rep- 

resents. Department stores selling goods at 

70 percent off two months before Christmas 

hurts the brands, their equity and their image.” 

The message to the consumer, Malkin 

says, “is that value for money can still be 

found in outlets. It turns out that this is 

appealing to all three parts of our customer 

base, the domestic shopper, the 

large population of long-term ex-pats, and 

tourists. Everyone agrees that mindless 

consumption is over.” c 

Holiday, January sales are 

holding strong for outlets 

Outlet retailing has had the quiet 

reputation of being countercyclical 

to economic downturns – quiet because 

brands have so often been reluctant 

to discuss their outlet distribution channels. 

But just as so many things have changed 

in the last few months, the sector’s strong 

sales are now proudly on display. 

As Robert Hallworth, centre manager at 

Lowry Outlet Mall says, “The consumer is 

undoubtedly cautious at the moment, but 

with the extra income people are seeing 

from reduced mortgages, we’ve noticed 

that little luxuries haven’t gone out the 

window. For instance, people are enjoying 

a day out and sharing a meal.” 

Being countercyclical doesn’t mean that 

outlet chains and landlords are sitting back as 

the customers and money flow in. There’s 

hard work ahead and everyone knows it. 

Pieter van Voorst Vader, real estate 

manager of Nike Europe told IOJ, “We are 

re-structuring our existing portfolio with 

closures, downsizing, refitting and expanding 

existing units and developing new, alternative 

concepts, such as stand-alone units 

in retail parks. We are also standardising 

internal processes to improve our speed to 

market. And we’re exploring new markets 

in closer detail, such as opening the first 

Nike-owned outlet store in St. Petersburg.” 

McArthurGlen 

Sales at the seven UK designer outlet 

centres operated by McArthurGlen 

outperformed the UK’s retail sector in 

January. Like-for-like sales increased 10 

percent compared to the same period in 

2007, with sales of designer goods being 

one of the strongest performing categories, 

ING’s Dalton Park in England kicked off 2009 with healthy sales and footfall, probably 

in response to bright marketing, new promotions and outlet pricing. 

showing a 19 percent comp store increase. 

Meanwhile, total sales were up by 12 

percent and footfall by 9 percent for the 

UK portfolio. 

Cheshire Oaks Designer Outlet in 

Chester, the UK’s largest with 31,300 m 2 

of GLA and 140 units, recorded a 10percent 

increase; York Designer Outlet, a 

17-percent increase and Swindon Designer 

Outlet, a 13-percent increase. 

Henrik Madsen, McArthurGlen’s Managing 

Director for the UK and Northern Europe, 

said the strong January performance 

followed strong holiday like-for-like sales 

that increased by nearly 4 percent. 

“This increase comes despite strong 

competition from heavy discounting by 

retailers on the high street,” Madsen said. 

“Our centres are also benefiting from 

more AB customers experiencing our 

designer and fashion offer, which in turn 

is helping to push up sales.” 

For McArthurGlen’s entire portfolio of 

17 centres in the UK and Europe in January, 

total sales were up 17 percent, comp sales 

were up 8 percent and footfall by 7 percent. 

Dalton Park 

At ING’s Dalton Park in the UK, 2009 

kicked off with strong sales for the first five 

weeks with like-for-like sales increasing 13 

percent and visitor levels increasing 12 percent. 

A recent outdoor-wear promotion saw 

a lift of 22 percent on ski and outdoor wear 

with strong performances from Regatta, 

TOG 24, Mountain Warehouse, Lillywhites 

and Berghaus at Brand Fusion. Nike Factory 

store, Gap Outlet and Marks & Spencer 

outlet have also beaten forecast sales for the 

first five weeks with significant increases on 

last year, the developer says. 

Dalton Park puts its positive performance 

down to the consumers need for branded 

(Continued on page 14) 


THE ECONOMY 

(Continued from page 13) 

product at bargain prices as well as an aggressive 

marketing programme and launch of the 

new Dalton Park Web site: www.dalton-park. 

co.uk. With those initiatives, feedback from 

new tenants has been positive: 

n “Our Gap Outlet opening has been 

our best this year with sales far exceeding 

expectations.” – Rob Greene, district 

manager, Gap Outlet 

n “Past Times is delighted. The shop 

has exceeded budget and we have had fantastic 

response from customers.” – Penny 

Tunnell, Product Director, Past Times 

n “We feel the help, support and marketing 

programme has enabled us to enjoy 

a very positive first year trading.” – David 

Waring, Area Manager, Sleepmasters 

Fashion House 

Outlet centres in Poland bucked the 

declining economy, according to Neil 

Thompson, CEO of Fashion House 

Outlet Centers, because “When customers 

count every penny, cent and zloty, they 

find ways to maintain their lifestyle.” 

Hello, outlet shopping. 

Bigger centres, including those in the Fashion 

House portfolio, also help drive sales, he 

said, because they “mean more shops and a 

wider offer for customers. Customers are 

first lured by clothing brands, but then start 

looking to the outlet for household articles, 

haberdashery and interior decoration. Polish 

consumers, in particular, know a good deal 

when they see one, and they’re even smarter 

shoppers when money matters.” 

Junction One 

Junction One achieved holiday compsales 

growth of 20 percent, which John 

Drummond, the scheme’s asset manager, 

attributes to tenants rising to the challenge 

and aggressive marketing. 

“Along with our retail partners we 

invested heavily in an integrated marketing 

campaign,” Drummond said, adding that 

“more than half of J1’s tenants recorded 

substantial double-digit growth.” 

Tenant comments include: 

n “Junction One was my second-best 

performing store throughout the whole of 

November and December, trading in double 

figures.” Jayne Everett- Brand Fusion 

n “Our store at Junction One was 

fourth out of the 11 in Northern Ireland. 

Bearing in mind the doom and gloom 

across the economy, this performance was 

very good.” Kirsty Waldrum, Thornton’s 

n “Very strong Christmas at J1 and in 

fact delighted with the trade for the last three 

months. We are very upbeat about the centre 


Counting on its aggressive management strategy, Resolution Properties predicts that 

its 215,278-sf Park Avenue Fashion Outlet near Bilbao, Spain will produce a 12 percent 

increase in sales this year. 

and feel it has a good mix which gives us a 

lot of confidence.” Paul Donoghue, M&S 

n “Our Junction One store had a 

fabulous Christmas. Customers flowed 

through the doors. We experienced a 

high level of repeat customers, which is 

very satisfying in the present economic 

climate.” Tracey Reynolds, Banana Books 

n “We are delighted. We experienced a 

significant increase in sales over the 6 week 

period against the previous year.” Darren 

Walker, asst. mgr., Camille 

“Motorcoach traffic at Christmas increased 

by 400 percent increase this year,” 

Drummond said, adding that more than 60 

percent of the coaches came from the South 

of Ireland, thus benefiting from the recent 

VAT reduction, as well as the bargain pricing. 

uK, europe, Middle east 

n The Lowry Outlet Mall said it has 

seen like-for-like sales increase 18 per cent 

in January. The Emerson Group-owned 

mall said it also saw a 20 percent increase 

in footfall in the period. During the first 

week of January like-for-like sales were up 

39 per cent with footfall up 48 per cent 

year on year. For the month of January, 

food-court & restaurants sales were up 20 

percent. For 2008, footfall increased 4.5 

per cent to 4 million customers. 

n Park Avenue, Resolution Property’s 

outlet scheme in Bilbao, says the beginning 

of 2009 is off to a promising start. If the 

scheme’s performance during the first two 

weeks of January are any indication, the 

centre is on target to meet its goal of 12 

percent growth for the year. 

n The credit crunch may be hitting the 

United Arab Emirates, but it hasn’t kept 

bargain-hunters from heading to Dubai 

Outlet Mall. More than 500,000 hit DOM in 

November, a 15 percent increase from 2007. 

“The downturn in the global economy 

is making customers consider every single 

dirham that they spend” DOM director 

Vishal Mahajan said. 

The number of visitors – who include 

UAE Nationals, Arab expats, Western 

expats and tourists from all over the world 

– jumped 40 percent for the year, which 

Mahajan attributes to greater awareness of 

the scheme, which has 240 stores and is 

planning a phase 2. c 

A year after opening, Al Alhi Group’s Dubai Outlet Mall has caught on with shoppers 

– more than 500,000 visited the 750,000-sf mall in November.

ArOUND THE gLOBE 

Unico opens third centre 

in barranquilla, Colombia 

unico, an outlet center developer 

based in Cali, Colombia, opened its 

third and largest outlet centre on 5 

December, 2008, in Barranquilla. 

The 200,000-sf Unico Barranquilla is an 

enclosed mall that executive director David 

Toledo said opened about 80 percent 

occupied. 

“The tenants are mostly local brands,” 

Toledo told IOJ. “There are many, many 

manufacturers of apparel and footwear 

in Colombia, so it’s natural that we tenant 

with the most popular ones, such as GEF, 

Americanino, Naf Naf, Tennis, Bosi, Velez, 

Studio F, Leonisa, Totto, Color Siete and 

Decko, among many others. But we also 

have plenty of international brands, too, including 

Adidas, Diesel, Esprit, Levi’s, Nike, 

Kenneth Cole, Puma and Quiksilver. 

The Colombian outlet sector is based 

on the U.S. model with local adaptations, 

Toledo says. “The outlet concept is wellestablished 

here and has been operating 

for more than 10 years. Retailers and 

consumers both understand the concept. 

Unlike the rest of South America, Colombia 

does have an outlet industry that 

is developing along with the traditional 

shopping-center sector.” 

The developer’s first centre, Unico Cali, 

opened in 1997 as an adaptive re-use. 

Tenants at that center, also 200,000 sf, include 

Adidas, Calvin Klein, Levi’s, Puma, 

Skechers and Umbro. 

Unico Pereira, the developer’s second 

outlet centre, opened in 2004 with 60,000 

sf. Tenants include Levi’s, Skechers, USA 

Jeans, Mini People, Maxim’s and Sebastian. 

PLANNED CENTRE uPDATES 

FHD to develop 

as many as 16 

centres in Russia 

Fashion House Development (FHD), 

successor of The Outlet Company, and 

a partnership of GVA Grimley Outlet 

Services and Liebrecht & Wood, has 

acquired its first outlet site in Russia. The 

site is next to Sheremetyevo International 

Airport, on the main highway connecting 

Moscow and St. Petersburg, just outside 


With an estimated 44.6 million people 

in 2008, Colombia is the fourth-most 

populous country in South America, after 

Brazil, Argentina and Peru. According to 

Toledo, everyone likes outlet shopping. 

“Who is our shopper? Everyone!” he 

says. “Colombian shoppers love well- 

of the Moscow city. FHD will partner 

with the Moscow development firm GVA 

Sawyer, who’ll serve as the local developer 

of the project. 

FHD CEO Neil Thompson says the 

developer intends to roll out 16 outlet 

centres in Russia because brand awareness 

is so great. 

Brendon O’Reilly, Director, GVA Grimley, 

says that Russia has no outlet centres, 

“yet there is potential for at least 20 based 

on population, brand awareness and potential 

spend. Interestingly, it was tenant 

unico barranquilla, 

above and left, is the 

third outlet scheme to 

open in Colombia that 

is based on the American/European 

model 

that features manufacturer-operated 

stores 

in a new-construction 

setting. 

known brands but they want to pay the 

least they can. Unico shoppers always 

prefer the best price-quality equation, and 

they enjoy the exploration process. Also, 

our outlets are vibrant, exciting, and offer 

a secure environment, which Colombians 

definitely care about.” c 

demand that drove us to explore Russia.” 

Cameron Sawyer, Chairman of GVA 

Sawyer, says that just the fact that the 

deal was able to be closed so quickly in 

this economy “is a really positive sign and 

has given us an excellent foundation for 

achieving market dominance.” 

According to Patrick Van Den Bossche, 

co-founder Liebrecht & Wood and FHD, 

Fashion House Moscow “is the first of 

three plots we have the funding in place 

for in the Ukraine and Russia. The further 

two plots are currently being finalised.”

PLANNED CENTRE uPDATES Continued 

FHD’s portfolio includes three outlet 

centres in Poland and one in Romania. A 

second for Romania is also planned. 

McArthurGlen finds 

traction in Germany 

McArthurGlen Group has been given the 

go-ahead to develop a 20,000-m2 designer 

outlet village in Neumünster, in the North 

German state of Schleswig-Holstein. 

The city of Neumünster selected McArthurGlen 

as its preferred partner following 

a European-wide bidding process. The 

site of the new village is on the B205, the 

main access road to Neumünster from the 

A7/E45 motorway linking Denmark with 

Southern Germany. The site is 40 minutes 

north of Hamburg, the second largest city 

in Germany and the wealthiest city in that 

country. The state of Schleswig-Holstein is 

the third most important tourist destination 

in Germany for national tourists, 

receiving over 5.5 million visitors a year. 

The 15,000-m 2 phase 1 will open in 

2011, followed by a 5,000-m 2 phase 2. 

McArthurGlen operates 17 outlet 

centres throughout Europe and the UK 

and is in the process of redeveloping the 

former B5 centre near Berlin. That center, 

renamed Designer Outlet Berlin, is owned 

by Henderson Global Investors and is 

scheduled to reopen in May. 

Alpenrhein set for 

late 2009 opening 

The Countdown has begun: In 10 

months’ time ING’s Alpenrhein Outlet 

Village in Landquart, Switzerland, will 

become reality. The south end of the 

site, where the majority of the shops 

has already been completed, is significantly 

advanced and the two-level parking 

deck is finished. At the end of January, 

leases had been signed with more than 30 

brands. BVS Outlet Villages is handling 

leasing, management and marketing of 

the 226,020-sf outlet centre. For closer 

updates of the progress, check out the 

centre’s Web site at www.alpenrheinoutlet. 

com and click on the two Web cams. 

Freeport steps up 

growth into France 

Alsace International Outlet is the 

latest Freeport centre, scheduled to open 

in October 2010 with 106 stores. Located 

45 km north of Strasbourg, on the 

German/France border it has a 90-minute 

catchment comprising 65 percent German 

and 35 percent French; 9 million tourists 

visit Alsace every year. The outlet centre 

has been designed as a circular ‘race track’ 

and whilst it is costing more to build, 

Freeport thinks that the higher design will 

pay back in the longer term. 

Freeport’s Le Cannet Outlet Centre in the 

South of France is planned to open in 2011. 

Since Freeport was bought out by 

CEREP Investment II Sarl, part of the Carlyle 

Group in September 2007, the company 

has installed local people to run its outlets. 

Chris Milliken, Freeport leasing director, 

said: “Whilst being owned by a private 

equity company we do feel under pressure 

to perform. Carlyle has given us tough 

targets but they also seem to be allowing 

us to plan for the long term.” 

Miller Group will 

complete Kendal 

Riverside build-out 

The Miller Group has been named the 

principal contractor of the €113 million 

Kendal Riverside regeneration project. 

The UK-based developer will complete 

the superstructure works on the 4.8 acre 

site, including erecting over 2,500 tons 

of steel frame, laying floors, building all 

internal and external walls and raising the 

roof structure. 

John Drummond, Kendal Riverside Ltd 

project director, says that Miller already 

has steelwork well advanced. “The company 

will be working with us right to the 

end of the project as they are also contracted 

to carry out the internal fitting out 

of the apartments and offices, delivering a 

turnkey development in spring 2010.” 

Kendal Riverside Ltd is a partnership 

comprising CUSP and The Guinea Group. 

During construction K Village continues 

to trade as an outlet centre. 

Other planned 

projects to watch: 

■ With its fast growing economy, 

and its independence of the European 

economy, Norway has one of the strongest 

economies in the world. So it’s not 

surprising that, despite a small population 

(4.8 million), it is about to get its first 

outlet centre. Castelar Corporate 

Finance is seeking to open the first outlet 

centre in Norway, gaining first-mover 

advantage in the country. Strategically 

located at Vestby, equidistant between 

Drammen and Oslo, with good visibility 

and easy access, Norway Outlet will 

have 13,000 m 2 and contain 50 brands. 

“We will not have a catchment of 2 million 

but we will be the only outlet centre 

there,” reports Ådne Søndrål of Castelar 

Corporate Finance. 50% of the centre is 

already leased. 

■ France-based Advantail, founded by 

former directors of McArthurGlen and 

Value Retail, has three projects underway 

in France. The first, at Moulin de Nailloux 

Village (Toulouse), is due to open 

in April 2010. This site is strategically 

located on one of the main highways into 

Spain. The outlet centre will be environmentally 

sustainable with 130 stores, five 

restaurants and a cafe. It will also have 

a children’s nursery, a tourism office and 

self-storage facilities for tenants. In late 

2008 it was 20 percent leased. Other Advantail 

projects are: Parc du Cubzac Village 

(Bordeaux): opening 3 April 2012, 

and another outlet village in South-East 

France, the site for which is still under 

negotiation. 

■ With three outlet centres already 

operating across Italy, Italian property 

management company Promos opened 

Palmanova, its latest outlet centre, in late 

2008, on the border of Italy, Germany, 

Austria and Slovenia. A further three 

outlet centres are due to open: in 2009 

the first outlet village in Abruzzi, half way 

down the eastern coast of Italy, on the 

Adriatic coast, in 2010, Pisa Outlet Village 

in Tuscany; also in 2010, Timisoara 

Outlet Village in Romania, close to the 

Serbian and Hungarian borders. 

■ Gloucester Quays, part of the €1 

billion regeneration of one of the UK’s 

most historic cities, will include one of 

the last large, regionally dominant outlet 

centres in the UK. The outlet centre will 

house 100 shops and a large area of waterside 

bars, cafes and restaurants. Next 

to the centre is a new hotel, supermarket 

and office space. Whilst already a thriving 

retail centre, the city of Gloucester is also 

a major tourist destination with over 6 million 

visitors per annum. The centre is due 

to open on 21 May. To make sure just the 

right people know about it, the developer, 

Gloucester Quays LLP, has taken a fourpage 

spread in the February edition of 

Vogue magazine. c 


LEASiNg 

Fashion House Gdansk 

breaks new ground 

wORK HAS STARTED on phase 2 of 

Fashion House Outlet Centre Gdansk in 

Poland, to be completed by November. 

The expansion of the 101,800-sf centre 

will cost about €15 million and has a build 

area of 107,639 sf with a GLA of 78,576 

sf, adding 50 new outlet stores to the 

scheme. 

The building contract has been undertaken 

by Hochtief Polska and is south 

of phase 1. The expansion will continue 

the centre’s theme of a fishing village 

with colourful shop fronts and its own 

lighthouse. 

Phase 1 opened in 2005 with tenants 

Adidas, Big Star, Gino Rossi, Levi’s, 

Mexx, Lee Cooper and Wolczanka, followed 

by brands like Mexx, Converse, 


Puma and Nike. 

“Leasing at the expansion is already 

well underway,” says Neil Thompson, 

CEO of Fashion House Developments. 

Fashion House Developments is a partnership 

between Liebrecht & Wood and 

GVA Grimley Outlet Services. The leasing 

agents are CB Richard Ellis and GVA 

Grimley Outlet Services, and the operator 

is GVA Grimley Outlet Services. 

The project is in northern Poland, in 

the Szadolki district near the Baltic coast, 

one of the most popular tourist areas in 

the country, with over 1.7 million within 

a 90-minute catchment area and a further 

1.5 million visitors. 

Recent tenant additions at other Fashion 

House Outlet Centre schemes include 

Mustang Jeans in Sosnowiec, Poland; IC 

Company and Eastpack & Envy Sport in 

Prague in the Czech Republic; and Olymp 

in Budapest, Hungary. 

Osprey to open two more outlets in UK 

uK bAG MAKER Osprey Graeme 

Ellisdon Ltd has instructed GVA 

Grimley Outlet Services Retail 

Development to find two more outlet 

store sites that could open in 2009. 

“We opened the first Osprey London 

Outlet store at MacArthur Glen 

York in October 2008,” managing 

director/designer Graeme Ellisdon 

explains, “which has proved to be a 

great success. This was part of the 

development and implementation of 

the new UK outlet strategy for our 

luxury leather brands to be exposed 

to a wider range of consumers and 

to ensure the best possible route 

to market for excess stock, thereby 

strengthening the overall position of 

the company.” 

A new channel for the upscale bag 

designer, outlet retail has proved to 

be “spot on,” he says, adding “that 

there is huge potential for us within 

this sector and a strong demand 

from a new customer base that we 

can develop further.” 

The new locations haven’t yet been 

named. c 

Tom Tailor is new 

in Junction One 

GERMAN FASHION brand Tom Tailor, 

which is sold in more than 35 countries, 

opened its first UK store in September 

in the 200,000-sf Junction One, an outlet 

project in Antrim, Northern Ireland. 

Created in Hamburg in early 1960s, the 

premium label’s fashion portfolio includes 

a range of high quality casual wear along 

with a denim male and female collection, 

which targets shoppers aged 15 to 25. 

The 4,300-sf store also supplies tots 

and teenagers with its range of Tom Tailor 

Minis and Kids for boys and girls aged 

18 months to 14 years. 

Unlike other high street or outlet 

brands, Tom Tailor seeks to regularly 

refresh its stock on a monthly basis with 

new collections launched in store 12 

times a year. “Therefore savvy outlet 

shoppers are acquiring contemporary 

styles at bargain prices,” says Tom 

Tailor, area manager Richard Holder, “a 

major plus in today’s more challenging 

retail market.” 

Centre manager Leona Barr says “whilst 

Tom Tailor already operates a high street 

franchise at Rushmere Shopping Centre 

and another unit is soon to open at Victoria 

Square, the name is still relatively new 

to the Northern Ireland consumer.” 

Also making its debut at Junction One 

is UK-based outlet retailer Event Jewellery, 

which opened its first outlet store 

on the island of Ireland in October. The 

store offers a range of gold and silver 

jewellery and premium brand watches. 

And shoe brand Staccato is growing, having 

taken on a new 10-year lease with Junction 

One. It is relocating to a similar-sized 

unit adjacent to its parent company Pavers. 

The Guinea Group opened the centre 

in 2004. 

New food 

vendors at 

Lowry Outlet Mall 

THE LOwRY OuTLET MALL near Manchester, 

UK, has signed two new restaurant 

operators. 

Deli-Fresh and Chicken Cottage have 

both taken more than 500 sf in the 

205,867-sf centre’s food court. Sales at 

Deli-Fresh, a salad bar run by a local 

operator, “so far have smashed expectation 

and the turnover has increased week 

on week since opening — a positive

eport during a tough economic climate,” 

a spokesperson for the mall says. 

Robert Hallworth, centre manager at 

Lowry Outlet Mall, says the credit crunch 

is benefiting the mall. 

“It is clear,” he says, “that people’s 

disposable income is being squeezed and 

outlet shopping is growing in popularity 

as a result.” 

Hallworth said that new retailers, which 

include Nike and The Earth Collection, 

have been reporting positive sales figures. 

Three new tenants 

at Gunwharf Quays 

THREE NEw TENANTS have joined 

Gunwharf Quays, Land Securities’ £200 

million mixed-use development on the waterfront 

at Portsmouth Harbour in the UK. 

They are: 

n globally renowned sportswear manufacturer 

and retailer Canterbury New 

Zealand, which opened its first outlet 

store in Europe 

n US surf wear store Hurley, which also 

opened its first UK outlet store 

n and Artigiano, the luxury Italian 

woman fashion clothing brand that offers 

reduced prices up to 70 percent off 

original prices and a selection of exclusive, 

one-off samples. 

The 180,000-sf Gunwharf Quays 

opened in 2000. 

GVA Grimley 

adds tenants 

to four centres 

GVA GRIMLEY Outlet Services leasing 

team started 2009 with five new tenants at 

four centres: 

n Eastpak & Envy Sport opened a 323m 

2 unit at Fashion Arena Outlet Centre 

in Prague. The retailer carries outdoor 

sports fashion and bags. 

n Also at Fashion Arena in Prague, IC 

Companies opened a 252-m 2 unit. IC 

brands include Jackpot, Cottonfield, 

InWear, Matinque, Part Two and Peak 

Performance. 

n Mustang Jeans opened a 182-m 2 unit at 

Fashion House Outlet Centre Sosnowiec 

in Poland in February with a five-year 

lease; at age 75, Mustang Jeans is one of 

the oldest manufacturers in Europe. 

n Miss Sixty opened a 162-m 2 shop at 

Premier Outlet Centre Ringsted in Copenhagen. 

Also recently opened in the centre 

is Hugo Boss. 

n Olymp has opened a 250-m 2 store at 

Premier Outlet Centre Budapest; Olymp’s 

brands include Olymp, Maryelis, Maybach, 

Brezner, Marty’s and Shirt House. 

Spain’s Park Avenue 

signs global brands 

PARK AVENuE, which opened in 

northern Spain in mid-2007, said its first 

calendar year was successful. The Bilbao 

scheme, owned and managed by Resolution 

Property, reported signing new inter- 

NEw TENANTS continue to flourish 

at Batavia Stad Outlet Shopping, the 

village-style center that opened in 

Lelystad, Flevoland, Netherlands in 

2001. 

The project’s new phase 3 held 

its soft opening on 14 Feb., with its 

grand opening set for 2 April. The 

new addition is the second expansion 

to the scheme in two years. 

Two American brands are among 

its new tenants: Calvin Klein fashions 

and Fossil watch. Other new tenants 

include Arrow, Converse, Eager 

Beaver, GK Mayer (shoes), Jack & 

Jones, Melka, Miss Sixty, Only, Pall 

Mall, Protest, Rags Industry, Tom Tailor, 

national brands, including Lindt, Geox, 

Converse (listed as Hoax), Pikolinos, Gold 

and North Company, Fox and Puma. 

Leading Spanish brand Desigual says 

its Park Avenue unit has become the most 

profitable of the company’s outlet stores. 

Calvin Klein, another tenant, is in discussions 

to lease space for its CK Jeans brand 

following the success of the company’s 

underwear outlet. New tenants will 

emerge this year, too: Negotiations are 

ongoing with a number of Italian, French, 

American and English retailers. c 

new brands open at batavia Stad’s phase 3 

Turnover, Vero Moda and Vingino. 

Centra Star, a high-quality bed 

and bath brand from Germany, and 

Kuyichi, a Dutch brand that uses 

organic denim, also opened, as did 

Seidensticker, an international apparel 

company based in Germany, and 

Dutch premium denim label Blue 

Blood. 

The centre’s third phase of 53,820 

sf brought the project’s gross leasable 

area to 274,500 sf. 

The Stable International scheme is 

about 30 minutes from Amsterdam, 

on the waterfront with tourist attractions 

that include Batavia Wharf and 

two museums. c 


NEWS NOTES 

Campaign subtly 

plugs outlets over 

high street 

MCARTHuRGLEN launched a new 

UK advertising campaign that touts 

year-round savings and designer 

brands as it differentiates outlet 

shopping from high street. The 

strapline, “Up to 60% off every day. 

100 % more desirable,” explicitly targets 

the cost-conscious customer 

who doesn’t want to compromise on 

quality branded goods. 

The campaign, which was launched 

in February, will run throughout the 

year across regional radio, press, outdoor 

and digital media. Ads will feature 

seasonal updates and will be upweighted 

during key trading periods. 

The campaign will be adapted to 

ensure resonance with each of the 

seven UK designer outlet centres 

operated by McArthurGlen: Cheshire 

Fashion House Outlet Centre warsaw was named Factory Outlet of the Year at the inaugural Europa Property CEE Retail 

Real Estate Awards in February. The awards honor companies in Central and Eastern Europe, including Poland, the Czech Republic, 

Romania, Bulgaria, Serbia and Croatia. The 24,000-m 2 Fashion House Warsaw has 130 tenants, including Nike, Puma, Gino Rossi, 

Venezia, Monnari, Levis, Wólczanka, Timberland, Ecco, Mexx, Almi Decor, Salamander and Triumph. The developer is Fashion 

House Development; the leasing agents are CB Richard Ellis & GVA Grimley; and the operator is GVA Grimley Outlet Services. 


McArthurGlen’s new ad campaign telegraphs fashion, but at a steep discount. 

Oaks Designer Outlet; Ashford 

Designer Outlet; Bridgend Designer 

Outlet; East Midlands Designer 

Outlet; Livingston Designer Outlet; 

Swindon Designer Outlet; and York 

Designer Outlet. 

Shannon Luxford, UK regional mar- 

keting manager, says: “We have a 

very clear proposition for customers 

of 60% savings every day of the year, 

which differentiates us from the high 

street. The campaign retains our core 

brand values of style and quality while 

delivering a clear price message.” c

Dalton Park 

achieves green 

accreditation; 

honors top tenants 

DALTON PARK, ING Real Estate’s 

160,000-sf scheme near Newcastle, 

England, has become the first outlet 

centre in the Northeast to be 

awarded the prestigious ISO 14001 

accreditation for successful environmental 

management. 

Dalton Park achieved the standard 

through its “going green” campaign 

launched in 2008. The campaign 

introduced energy-saving initiatives 

and a series of open workshops 

to encourage community participation 

in recycling and regeneration. 

Additionally, Dalton Park is 

n Recycling cardboard, printer cartridges, 

plastic coat hangers, stationery, 

newspapers, magazines, fluorescent 

tubes and light bulbs 

n Reducing landfill waste 

n Encouraging staff to switch off lights 

and appliances when not needed 

n Using LED lights for Christmas 

decorations 

In other news, Dalton Park in 

February honored its top retailers 

in appreciation for the centre’s continuing 

to trade positively and add 

new tenants, including Gap, Subway 

and Past Times, despite the economic 

downturn. 

The top performers at Dalton Park 

include: 

n Mountain Warehouse: best comparable 

sales growth 

n Past Times: best newcomer 

n Bags etc: most improved tenant 

n Regatta: best customer service 

n Nike Factory Store: best overall 

contribution to centre 

n Nike Factory Store: best contribution 

to marketing events 

n Levi’s: best team player 

n Amanda Bate from At Your Service: 

personality of the year c 

New brands that have joined the recently opened phase 3 of Value Retail’s Bicester 

Village in Oxfordshire, England include Diane von Furstenberg, Matthew Williamson, 

Smythson’s, Marni, Alexander McQueen, Theory, D&G, Wolford, Luella, 

Joseph and 7 For All Mankind. 

Outlet Sveta Helena opened in Croatia in late 2008 about 70 percent occupied 

after months of delay. The €45 million project, owned by Israel-based Prigan Holding, 

has a 12,500-m 2 first phase; a second phase of the same size is planned. 


OWNErSHip CHANgES 

henderson Global Investors 

buys barberino scheme 

On 27 January, Henderson Global 

Investors’ European Outlet Mall 

Fund acquired McArthurGlen’s 

Barberino Designer Outlet Village, 15.5 

miles north of Florence, Italy, for €125 

million. 

The 100-tenant centre, which opened 

in March 2006, has 226,000 sf of GLA. 

Tenants include D&G, Polo Ralph Lauren, 

Prada, Roberto Cavalli and Richmond. 

Phase 2 is scheduled to open in 2010, 

adding another 64,583 sf. 

Including the acquisition of Barberino, 

Henderson Global directly owns nine outlet 

centres in Europe and three in the UK, 

with an overall portfolio valued at €1.2 

billion. Eleven of the 12 properties were 

purchased from McArthurGlen Group, a 

co-investor in the fund. 

Established to acquire outlet properties 

in primary locations, the fund has raised 

more than €625 million of equity since its 

launch in February 2004. 

McArthurGlen manages all the assets in 

the fund’s portfolio, and will continue to 

manage Barberino Designer Outlet. 

David Williams, manager of the fund, 

said the outlet industry is performing 

robustly despite the economic downturn as 

people are more careful with their discre- 

In early February, Madrid-based 

Neinver said that it had acquired, on 

behalf of its IRUS fund, Germany’s 

largest designer outlet centre, the 23,500m 

2 Designer Outlets Zweibrücken (DOZ) 

from Kenmore Property Group and 

Revcap. Outlet Centres International 

developed and opened the centre in 2001 

and had continued to manage it. 

Neinver, which manages 260,000 m2 of 

retail GLA in Europe, bought DOZ for 

€110 million. The objective of IRUS fund is 

to reach €1.4 million in the next three years 

The Spanish company will manage, develop 

and promote the fourth phase of the 

project, which will include 32 new shops. 

Located on the border of France, 

Germany and Luxemburg, DOZ has a 


The Italian centre is scheduled to grow to 290,000 sf when phase 2 opens in 2010. 

tionary income. “Across Europe, skilled 

specialist managers such as Henderson and 

McArthurGlen are able to drive outperformance 

for investors in this sector…We still 

intend to grow [the portfolio] over time 

with carefully selected acquisitions and the 

continued development of existing assets.” 

Julia Calabrese, CEO of McArthur- 

Glen, says the outlet business in Europe 

is maturing. “We introduced the concept 

of designer outlet retailing to Europe in 

1995,” she says, “and now more than ever 

Distinctively designed, the center brims 

with glass. 

catchment area of more than 15 million 

people. 

Manuel Lagares, Neinver’s CEO, commented, 

“This acquisition ends a year 

we are seeing the sector really coming of 

age as consumers gain a better understanding 

of the concept and how it can help 

them through tougher economic times.” 

McArthur Glen has five European 

projects in the pipeline, totaling nearly 1.8 

million sf, set to open by the end of 2011. 

The company’s growth plans, Calabrese 

says, show “how vibrant the sector is and 

how there is still growth in many markets, 

with brands looking to expand their distribution 

channels.” c 

Neinver acquires Zweibrücken centre 

(2008) in which we have successfully 

added assets in Italy, Spain and Poland 

to the fund, comprising a total of almost 

95,000 m 2 . Like Castel Guelfo Outlet City 

in Italy, Neinver was attracted to securing 

Designer Outlets Zweibrücken owing to 

its strong retail performance, location and 

further investment opportunities on offer. 

Alongside the San Sebastian de los Reyes 

Factory, the Alegra Business and Leisure 

Park in Madrid and the Wroclaw Factory 

in Poland, it makes a welcome addition to 

the portfolio and fulfills Neinver’s commitment 

to its investors.” 

OCI is also the developer and operator 

of Designer Outlets Wolfsburg, adjacent 

to Volkswagon’s headquarters in 

Germany. c

neil varnham to 

leave henderson 

NEIL VARNHAM, who has been at 

Henderson Global Investors in various 

positions for 33 

years, will leave in 

April. He resigned 

in December 2008. 

He was head of 

business development 

and head 

of retail in the 

UK and Europe 

Neil Varnham 

and was responsible 

for and launched a number 

of funds over the years, including 

Henderson’s UK shopping centre 

fund, its European outlet fund, its 

out-of-town retail fund and most 

recently its UK outlet fund. 

Varnham, 51, aims to pursue a 

new role in retail asset management 

and fund creation. He is looking 

at opportunities in a non-executive 

capacity. 

two execs join 

Gloucester Quays 

TwO INDuSTRY veterans have been 

appointed to Gloucester Quays Designer 

Outlet in southwest England. 

Nick Poole takes over as facilities 

manager and Richard Rawlings has 

been appointed centre manager, joining 

Franco Muccini, the centre director. 

Poole joined the retail industry 

in 2000 when he became facilities 

manager at McArthurGlen’s designer 

outlet centre in Swindon. In 2006, he 

was awarded the Sword of Honour by 

the British Safety Council. 

Richard Rawlings, following a career 

on high street, joined McArthurGlen in 

1998, working at Swindon, Mansfield, 

Ashford, Roermond and Bridgend outlet 

villages. In 2003, he won a Sceptre 

Award for Outlet Centre Manager of 

the year. 

Gloucester Quays – a 60-acre, 

£400 million development – is a joint 

venture between Peel Holdings and 

British Waterways. The centre is to 

open in May. 

new marketing 

manager appointed 

at the Galleria 

ELLENOR bOYLE has been appointed 

marketing manager at the 320,000sf 

Galleria Outlet Centre, Land 

Securities’ designer outlet mall in 

Hatfield, Hertfordshire, UK. 

She has six years retail marketing 

experience. She previously was 

with the women’s fashion retailer 

Select. She also worked for Currys 

and Office World. 

Wild to chair ICSC 

Europe board 

THE INTERNATIONAL Council of 

Shopping Centers (ICSC) said in January 

in London that Marcus Wild, CEO at SES 

Spar European Shopping Centers (a 

part of the SPAR Austria Group) would 

chair the ICSC European Board when 

Jaap Gillis stands down at the end of his 

three-year tenure in April. 

Wild said, “I look forward to actively 

developing ICSC across Europe, 

especially in the coming year as 

we all face the impact of the current 

global economic condition on 

the shopping centre industry. We 

must act wisely with farsightedness 

to help ICSC members successfully 

negotiate the next few years.” 

He said he especially would reinforce 

ICSC’s presence in Central and 

Eastern Europe. 

bvS adds to its 

management team 

bVS OuTLET Villages is reinforcing 

its management team less than a 

year before opening its first project, 

the 21,000-m 2 Alpenrhein Outlet 

Village, an hour east of Zurich. 

Didier Harm joined BVS as 

European retail director. Previously 

he was leasing director for Rosada 

Outlet Village in the Netherlands. 

He was also part of an advisory team 

that worked on a turnaround strate- 

gLOBAL pEOpLE 

gy for the Messancy outlet project in 

Belgium. Before that, for five years, 

he was real estate manager for Nike 

Factory Stores in Europe. 

A second addition is Cornel 

Graemiger, who has been named 

leasing director for the Alpenrhein 

scheme. 

Festival Park 

marketing 

FESTIVAL PARK Outlet Shopping 

Centre in Ebbw Vale, Wales, has 

named Gareth Thomas as the new 

marketing manager. 

Thomas joins the 122,000-sf 

Festival Park with 10 years’ experience 

in marketing and retail. He 

previously worked in marketing for 

McArthurGlen Designer Outlet Group 

and the low-cost airline Bmibaby. 

London-based Chester Properties 

owns Festival Park. 

neinver makes two 

key appointments 

NEINVER, A privately owned Spanish 

real estate developer active in the 

outlet industry, recently made two key 

appointments in its executive team: 

n Jose Maria Losantos Santorroman, 

formerly CEO, was appointed deputy 

chairman. He has held a range of 

posts since joining the company 16 

years ago. 

n And Manuel Lagares, former managing 

director, has been appointed 

CEO. In 2000, he was appointed general 

director of commercial policy of 

the Spanish Ministry of Economy, and 

three years later was named undersecretary 

of Science and Technology. 

He joined Neinver in 2004 as managing 

director and became involved in 

launching and management of IRUS 

fund in Europe. As CEO, he says he 

plans to boost Neinver internationally 

in each of its business lines. 

Neinver is Europe’s third largest outlet 

developer with 10 centres totaling 

1.9 million sf. In February the company 

acquired Zweibrucken Factory 

Outlet Centre (see page 22). c 


EpOrT FrOM CANNES 

Outlet session honest on sector’s position 

The first outlet-oriented panel discussion 

at Mapic in more than 15 years was 

held in November 2008 in Cannes, sponsored 

by GVA Grimley Outlet Services 

and ICSC/IOJ. 

Panelists at “Outlet Retailing’s Global 

Potential,” were Victor Busser, Leasing 

Director, McArthurGlen; Linda 

Humphers, Editor in Chief, IOJ; Peter 

Noble, Group Sr. Leasing/Commercialisation 

Director, Value Retail; Brendon 

O’Reilly, Director of GVA Grimley 

Outlet Services; Neil Thompson, CEO, 

Fashion House Developments; and Lisa 

Wagner, EWB Development. 

Speaking to an 

audience of 80, 

O’Reilly said the 

next six to nine 

months could 

represent a golden 

opportunity for outlet 

centres, despite 

O’Reilly 

Europe facing its 

toughest economy challenge for decades. 

russian FOCs 

need Euro brands 

Russia seems to be on everyone’s mind. 

The outlet concept has been floated 

in Russia for years, Natalia Oreshina told 

IOJ in Cannes. She 

is the founder of 

Moscow-based Art 

Properties, a real 

estate consultancy. 

“Outlets appeal to 

developers as something 

different,” she 

says, “but they are 

Oreshina 

difficult to implement. 

There are 

many franchisees in Russia, and standards 

are less than consistent.” 

Those brands that are most associated 

with luxury, and the ones that would make 

the best outlet brands, are controlled by 

four major companies: Mercury, Crocus 

International, Bosco and Jamilco. 

“They hold all the rights to all the top 

brands,” she says, “and those companies 

are also developers. Because of their intense 

rivalry, it’s impossible for one centre 

to have a collection of the best brands.” 

Thus, outlet centres in Russia will have 


“With manufacturers already having 

shipped inventory to retailers across 

Europe, slow sales on the high street 

could mean a bumper stock of branded 

goods moving more 

quickly into outlet 

centres,” he said. 

Furthermore, 

brands that have seen 

the high performance 

levels of manufacturer-run 

outlet chains 

are now opening 

Noble 

stores directly rather 

than through franchi- 

sees, thus, the medium term future for outlet 

centres looks good, Thompson said. 

But Victor Busser sounded a cautionary 

note regarding outlet development in 

new markets: “Outlet centres will only 

thrive where there is already strong high 

street retail.” 

Between 2009 and 2012, 38 outlet centres 

are planned, with Germany, Poland, 

Italy, France and Spain being perceived 

as the growth areas, though realistically 

to be tenanted by European brands. 

Oreshina referred to one Italian outlet 

project, the Coliseum, that has been 

planned in St. Petersburg, but is on hold 

due to the difficulty of attracting tenants. 

Fashion House Development, on the 

other hand, is optimistic about launching 

a chain of 16 outlet centres there (see 

related story, page 16). 

It’s not just real 

estate, it’s retail 

Nigel Robson, director of Londonbased 

Resolution Property, says the dim 

economy seems pretty exciting to him. 

“We have a lot of 

cash,” he told IOJ in 

Cannes, “so if we 

can’t do something 

now, when can we?” 

By doing something, 

Robson means 

acquiring outlet 

centres with the €80 

Robson million fund he’s 

working with. The plan is to buy centres, 

pump up their sales volume and then sell 

them in four to five years. 

“We’re not a trading company,” he says, 

busser 

only a percentage of 

them will open. 

Not all outletcentredevelopers 

are planning 

expansion. Noble 

said Value Retail’s 

strategy “is to consolidate 

and build 

on our existing sites 

to generate growth.” 

Whilst the outlet sector is performing 

well, all panelists urged caution. 

Wagner, who saw outlets thrive during 

the US economic 

downturn in the 

early 1990s, said, 

“No retail sector 

is immune. The 

lack of credit is 

forcing changes in 

financing strategies. 

Cash is king 

wagner 

and there are many 

new players who 

are cash-rich who want to build.” 

“we’re an aggressive asset management 

company.” 

Why focus on outlet centres? 

“What I like is that outlets aren’t just real 

estate,” he says. “They’re retailing, too.” 

It’s not just real 

estate, it’s fashion 

“we’re not in the real estate business,” 

Alvaro Valiente, GM of Neinver Italy and 

Portugal, told IOJ in Cannes. “We’re in the 

fashion business. Our tenants are the stars. 

We hire retailers to be 

on our management 

team, and we make 

choices in our centres 

to enhance the customer 

experience.” 

Natural but 

modern, trendy with 

loads of sunlight, 

Valiente 

places for shoppers 

to rest, plenty of 

amenities all add up to a pleasant environment, 

he says, adding, “We also use 

interior designers, not architects, for our 

mall interiors.” 

He adds, “We are clients of our own centres. 

We understand our own shoppers.” c

WiTH THiS iN MiND 

Plea for simplicity: 

Outlets set the standard 

by CLIVE wOODGER 

Managing director, 

SCg London 

Outlet centres represent some 

interesting issues and challenges 

for both sides of my 

consultancy mindset. As an architect 

and brand consultant, I see that the 

world economy we are facing shows 

outlet centres to be the trading destination 

whose time has come. 

There are several reasons 

that outlet centres should 

be in the forefront today: 

n Their low costbase,simple-construction 

format is a role 

model for meeting new 

environmental and sustainability 

criteria. 

n The recycling concept 

of distributing product at a 

lower price, avoiding waste 

and optimising returns is 

an ethical strategy, providing 

a win-win solution for manufacturers, 

retailers and customers. 

The principle of using simple designs 

is a potential benchmark for traditional 

shopping centres. Certainly walking 

round the immense state-of-the-art, 

just-opened Westfield centre in London 

left me with some uncomfortable emotions 

in terms of what is good for the 

planet and the local community. 

From my perspective, the simplicity 

and market positioning of outlet centres 

has unfortunately often been used 

as an excuse for poor design, banal 

aesthetics and clichéd treatments. 

Just because outlets stand for lower 

prices doesn’t mean that customers 

don’t expect or need excellent design. 

Similarly, branding is still not fully 

understood. It is an intrinsic part of the 

developers’ approach to management, 

to centre architecture and design, to 

staff behaviour, to marketing and to 

communications. Ideally, there is a 

synergy between the developer’s brand 


and the centre’s brand – the business 

brand should support the consumer’s 

idea of the outlet centre. 

Again, unfortunately, this dual 

approach to branding is not prevalent 

and is often relegated to marketing 

and packaging of the centre. Branding, 

by definition, means being known 

for special, added-value attributes – 

emotional and tangible – for business 

and consumer audiences. 

Obviously there are some good 

operators in the sector. 

McArthurGlen exemplifies 

a high-quality 

operation in terms of 

ethos, marketing initiatives 

and interesting centre 

experience. Swindon 

Designer Outlet west 

of London is an imaginative 

conversion of 

restored railway works 

and revitalized historic 

buildings given a contemporary 

function. 

Freeport’s Lisbon Designer Outlet and 

Kungsbacka Designer Outlet Village 

show a mixed range of innovation and 

design quality that reflect the raised 

design standards expected by aspirational 

and demanding customers. 

Centres must keep up to speed, and 

old favourites such as Bicester Village 

provide a department store-style 

experience with high-end brands and 

added services, such as valet parking 

and personal shop assistants. 

The potential for celebrity architects 

to promote and define a location 

through striking design is recognized. 

Certainly McArthurGlen’s decision 

to use Richard Rogers to design 

the memorable Ashford Centre with 

its tensile fabric roof and distinctive 

development profile – the world’s largest 

continuous tent structure – raises 

the bar and signals the demise of dull 

and predictable centre concepts. 

Outlet centres must compete for 

the customers’ time and money. The 

CLIVE wOODGER 

challenge of providing an interesting 

experience and retaining a simple 

approach demands imaginative synergy 

of centre design, marketing and 

image development. 

At the European Outlet Conference 

in London last October I was asked a 

classic operations question: Would I 

rather spend money on a water feature 

or additional retail space? I voted 

for the water feature – but only if it 

puts the centre on the map and really 

makes the place worth visiting. 

Enlightened developers do realise 

the value of making a location special. 

Let’s hope these tough times 

force a sharpened approach to creating 

outlet centre brands. Let’s 

build true destinations with distinctive 

experiences. c 

Clive Woodger is the managing 

director of SCG London, a strategic 

consulting service based in London. 

2009 IOJ Calendar 

ICSC european Conference 

22-24 April, Catalonia Palace of 

Congresses, Barcelona 

news Deadline, 21 April, 

Summer IOJ 

ICSC reCon 

17-20 May, Las Vegas Hilton, and 

Las Vegas Convention Center, 

Las Vegas 

news Deadline, 14 August 

Fall EOC IOJ 

news Deadline, 8 September, 

IOJ Pipeline 

Vrn Fall Outlet retail Convention 

14-15 September, Hyatt Regency 

New Brunswick, New Brunswick, N.J. 

ICSC european Factory 

Outlets Conference 

14 - 15 October, Starhotel Rosa, 

Milan 

Mapic 

18-20 November, Palais Des 

Festivals, Cannes

European Outlet Sector Grows - Value Retail News

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