For Designer Style, It's All Outlet - Value Retail News
For Designer Style, It's All Outlet - Value Retail News For Designer Style, It's All Outlet - Value Retail News
OErMONd roermond expansion is icing on a designer cake McArthurGlen says its thriving project in Holland is already the most popular designer outlet center in northwestern Europe. The 7,200-m 2 phase 3 of McArthurGlen’s Designer Outlet Roermond in The Netherlands that opened on August 18 has brought the center’s total GLA to 35,000 m 2 , which is certainly worth crowing about. But in addition to the extra footprint 16 InternAtIOnAl Outlet JOurnAl Fall 2011 and 35 new tenants, the expansion is also expected to ratchet up the center’s annual visitor numbers to 4.2 million from the present 3.8 million. The center is enormously popular with German shoppers, thanks to its location just 30 minutes from Dusseldorf. As a McArthurGlen press release states, the center is “Northern and Western Europe’s most visited outlet center with 20 percent of the market’s share.” The center has certainly benefited from the emerging economies in Eastern Europe, Asia, the Middle East and South America, with spend from international shoppers more than doubling in the first six months The phase 3 expansion at McArthurGlen’s Designer Outlet Roermond, which opened in August, doubles the 10-year-old center’s original GLA, bringing it to 35,000 m 2 . of 2011. According to Global Blue, a financial services company that advises retailers on shopping trends, Chinese visitors were the top spenders at Designer Outlet Roermond during this period, with their spending almost doubling compared to the same period in 2010. Speaking of doubling, the center now has nearly twice the GLA it opened with in 2001 – 17,500 m 2 . The center is still growing – an 11,000-m 2 phase 4 is scheduled to open in 2014. Although the center’s first phase is part of Henderson Global Investors European Outlet Mall Fund, the expansions are not. A new Burberry flagship store, triple the size of its former store in the center, is the phase 3 anchor at Roermond. The 35 new tenants – which brings the center’s total to 150 stores – include premier brands Moncler, Calvin Klein Collection, Navyboot, Baldinini and Abro; young fashion and jeanswear brands Desigual, Guess, Mexx, Ben Sherman, Bench, Trussardi Jeans, True Religion and River Woods; childrenswear brand Vingino; casual brands Fossil, O’Neill, Victorinox, and Converse and Gant shoes. Premium brand Furla will open in the fourth quarter. Expansions at two other McArthurGlen centers were due to open in September, after IOJ’s press time: a 5,300-m 2 phase 4 at Designer Outlet Parndorf in Austria, and a 4,500m 2 phase 2B at La Reggia Designer Outlet in Naples. See page 18 for more expansion updates. c
McArthurGlen’s Kaempfer discusses outlets’ future The industry continues to evolve and improve, he said, pointing out that each country has its own outlet flavor. By linda Humphers Editor in Chief Anyone who knows J.W. Kaempfer knows a few things about him: He’s as close to a modern day Renaissance man as any of us are likely to meet; he goes by “Joey,” he loves to sail, he values loyalty, and he’s one tough businessman. When he came to Europe from Washington, D.C., in 1993 to found McArthurGlen Group and bring U.S.-style outlet centers across the pond, he already had a successful company that specialized in developing first-class urban office buildings. He has never been one to do anything in a small way, so naturally he has led McArthurGlen to become Europe’s largest developer, owner and manager of designer outlet shopping villages, with a portfolio of 20 centers totaling more than 5 million sf (46,500 m2). It is the third largest outlet company in the world, behind Simon Property Group and Tanger Factory Outlet Centers. Like most successful entrepreneurs, Kaempfer brings many interests to the table, including a passion for architecture, occasionally even lecturing at Harvard Graduate School of Design. Over the past 30 years his companies have worked with many of the world’s outstanding architects, including I.M. Pei and Lord Richard Rogers, as well as exceptional architects specializing in historic preservation. Paul Goldberger, architecture critic for the venerable New Yorker magazine, wrote, “for people like Joey Kaempfer...architecture is not a choice between art and commerce, but a J.W. Kaempfer way of embracing both these realms.” When approached by IOJ, he quickly agreed to be interviewed, with the caveat that he might not answer any of the questions. J.W. Kaempfer always has a viewpoint – often humorous, always candid and perpetually insightful – quite unlike anyone else’s, so IOJ was happy to go along for the conversational ride. By the way, he ended up answering most of the questions. IOJ: You’ve been a part of the European outlet industry since Day One. Is this recent tight credit market any worse than the previous ones? JWK: We haven’t had a terrible time getting funding, but it’s taking longer than it used to. But I don’t know that we’re typical. IOJ: Generally speaking, how does outlet retailing in Europe compare with the U.S. sector? JWK: I don’t really know how the U.S. outlet industry works. When I’m in the U.S., I visit outlet centers, and we seem to be completely different. We have a different design sensibility, a different lease structure, a different tenant mix, although there are more crossovers now. The U.S. is vastly larger than Europe. When I first started developing outlet centers in Europe, I was told that we had to be at last 60 miles from the nearest department store. In Great Britain if I went 60 miles, I was already overlap- iOJ iNTErViEw ping another department store. Sometimes I was in another country. IOJ: How many more outlet centers and how much more GLA can Europe absorb? Do you have a feel for opportunities in Russia? Asia? Latin America? Where will McArthurGlen go next? JWK: I think Great Britain is probably built out, but there might be a place for one or two more. Throughout Europe there are some odd places here and there that can accommodate another center. There are a lot of opportunities in Russia, Asia, Latin America, wherever there are big populations and wealth. But would you want to open an outlet center in Mexico now? No way. Ten years ago we tried to get a foothold in Russia, but it was still too early there. We couldn’t make any kind of deal on a piece of land. So we walked away. The truth is, we’re not going anywhere. I personally don’t want to travel anymore, and when we offered the chance to younger people in the company, they chose quality of life. They didn’t want to go anywhere, either. IOJ: How long can the outlet gig keep going? Does it have legs? Is it really just the flavor of the month, the passing phase that was predicted when you first joined the industry? JWK: It’s not the flavor of the month. The fact is, stretching dollars is how people shop now. We see no evidence that they stop shopping at outlets when they have more money to spend. When they’ve bought their kid a great pair of sneakers at 40 percent less, they don’t think to themselves, “Oh, let’s pay more next time.” We’re reinventing ourselves as we go. Our center in Athens gets 4,000 to 5,000 people every Sunday just for the food. The shops aren’t allowed to open, but people love coming there with their families, window shopping, enjoying the great food. The industry is constantly improving and giving shoppers what they want. c Fall 2011 InternAtIOnAl Outlet JOurnAl 17
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- Page 3 and 4: PAGE 6 PAGE 16 PAGE 30 STAFF Intern
- Page 5 and 6: © Value Retail PLC 2010 THE Chic O
- Page 7 and 8: the McArthurGlen Retail Academy, wh
- Page 9 and 10: Coruna The Syle Outlets has a tenan
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- Page 15: OVER THE TOP UNDER THE RADAR FASHIO
- Page 19 and 20: A New Kind of Destination Destiny U
- Page 21 and 22: uKRAINE Progress reported On Kiev E
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- Page 25 and 26: Store, Calvin Klein, LK Bennett, Le
- Page 27 and 28: next two to three years, only two h
- Page 29 and 30: fered a caution on going overboard
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- Page 36: New Outlet Centres in Moscow and St
OErMONd<br />
roermond expansion is<br />
icing on a designer cake<br />
McArthurGlen says<br />
its thriving project in<br />
Holland is already the<br />
most popular designer<br />
outlet center in<br />
northwestern Europe.<br />
The 7,200-m 2 phase 3 of<br />
McArthurGlen’s <strong>Designer</strong> <strong>Outlet</strong><br />
Roermond in The Netherlands<br />
that opened on August 18 has brought<br />
the center’s total GLA to 35,000 m 2 ,<br />
which is certainly worth crowing about.<br />
But in addition to the extra footprint<br />
16 InternAtIOnAl <strong>Outlet</strong> JOurnAl Fall 2011<br />
and 35 new tenants, the expansion is<br />
also expected to ratchet up the center’s<br />
annual visitor numbers to 4.2 million<br />
from the present 3.8 million.<br />
The center is enormously popular<br />
with German shoppers, thanks to its<br />
location just 30 minutes from Dusseldorf.<br />
As a McArthurGlen press<br />
release states, the center is “Northern<br />
and Western Europe’s most visited<br />
outlet center with 20 percent of the<br />
market’s share.”<br />
The center has certainly benefited<br />
from the emerging economies in<br />
Eastern Europe, Asia, the Middle<br />
East and South America, with spend<br />
from international shoppers more<br />
than doubling in the first six months<br />
The phase 3 expansion at McArthurGlen’s <strong>Designer</strong> <strong>Outlet</strong> Roermond, which opened in August,<br />
doubles the 10-year-old center’s original GLA, bringing it to 35,000 m 2 .<br />
of 2011. According to Global Blue,<br />
a financial services company that<br />
advises retailers on shopping trends,<br />
Chinese visitors were the top spenders<br />
at <strong>Designer</strong> <strong>Outlet</strong> Roermond<br />
during this period, with their spending<br />
almost doubling compared to the<br />
same period in 2010.<br />
Speaking of doubling, the center<br />
now has nearly twice the GLA<br />
it opened with in 2001 – 17,500<br />
m 2 . The center is still growing – an<br />
11,000-m 2 phase 4 is scheduled to<br />
open in 2014. Although the center’s<br />
first phase is part of Henderson<br />
Global Investors European <strong>Outlet</strong><br />
Mall Fund, the expansions are not.<br />
A new Burberry flagship store, triple<br />
the size of its former store<br />
in the center, is the phase 3<br />
anchor at Roermond. The<br />
35 new tenants – which<br />
brings the center’s total<br />
to 150 stores – include<br />
premier brands Moncler,<br />
Calvin Klein Collection,<br />
Navyboot, Baldinini and<br />
Abro; young fashion and<br />
jeanswear brands Desigual,<br />
Guess, Mexx, Ben Sherman,<br />
Bench, Trussardi Jeans,<br />
True Religion and River<br />
Woods; childrenswear brand<br />
Vingino; casual brands Fossil,<br />
O’Neill, Victorinox, and<br />
Converse and Gant shoes.<br />
Premium brand Furla will<br />
open in the fourth quarter.<br />
Expansions at two other<br />
McArthurGlen centers<br />
were due to open in September,<br />
after IOJ’s press<br />
time: a 5,300-m 2 phase 4 at<br />
<strong>Designer</strong> <strong>Outlet</strong> Parndorf<br />
in Austria, and a 4,500m<br />
2 phase 2B at La Reggia<br />
<strong>Designer</strong> <strong>Outlet</strong> in Naples.<br />
See page 18 for more expansion<br />
updates. c
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