Loving Outlet Shopping - Value Retail News

COVER STORY
(Continued from page 4)
Roermond Designer Outlet;
Data is year-to-date from
January 2009 through August
2009.
Turnover (sales): as of
August 2009, the seven centers
are showing a portfoliowide
increase of 10 percent
compared to sales for the
same period 2008. Year-todate
2009 sales have seen
positive growth of 6 percent
to 8 percent. Henderson
Global Investors asset
manager Jayson Eagan says
the increase means “people
really are changing their
shopping habits.”
Footfall in the portfolio: YTD the
portfolio has seen a 4 percent increase in
footfall, with most coming from Northern
Europe. “We have also seen a slight
increase in dwell time,” Eagan says.
Vacancy: the portfolio’s vacancy currently
sits at 3.8 percent (96.2 percent
occupancy).
Occupancy costs: The Fund’s occupancy
cost (rent plus service charge as
a percent of turnover) currently sits at
11 percent, which Eagan says “is below
the 15 percent mark that our European
research team are comfortable with.”
Rents: 95 percent of the Fund’s leases
6 InternatIOnal Outlet JOurnal Fall 2009
Fashion House, Fashion Arena & Premier Outlets Centers
Footfall and Sales for june & july 2009 compared to june & july 2008
Comparable Footfall Comparable Sales
Jun-09 Jul-09 Jun-09 Jul-09
Fashion house Outlet Centre 31% 22% 37% 29%
Warsaw
Fashion house Outlet Centre 19% 10% 72% 51%
Sosnowiec
Fashion house Outlet Centre 12% 17% 28% 28%
Gdansk
Fashion Arena Outlet Center 44% 31% 51% 28%
Prague
Premier Outlets Center 25% 30% 47% 64%
denmark
The five centers total 740,280 sf (70,035 m2 )
are turnover based, with a cap, Eagan explains:
“Each lease’s percentage-rent provision
is different, ranging from 6 percent to
12 percent on the turnover they achieve.
But generally speaking, rents rise when
turnover rises. Base rents are adjusted by
the consumer price index or an amount
equal to 80 percent to 90 percent of the
previous year’s turnover rent, whichever is
higher.”
value retail
According to Frank Blanchette, group
retail and marketing director for Value Retail
Plc, sales performance growth across
the developer’s nine villages has remained
Value Retail’s Kildare Village near Dublin has defied the local economy with a YTD
increase in sales of 12 percent and an increase in footfall of 20 percent.
Source: GVA Grimley Outlet Services
solid. Comparable sales/turnover through
June 2009 grew 66 percent against the
first six months of last year and all of the
nine villages grew faster than their city
benchmark, he says.
“Despite continued, aggressive, competing
markdowns at full-price stores,”
he says, “through the second quarter
and into the summer trading period the
villages posted strong second quarter
increases in footfall (+22 percent), comparative
sales (+11 percent) and spend
per visitor.
“Tourism spend during the summer
trading period has accelerated this
growth,” Blanchette says, pointing out
that YTD 2009 Tax Refunded Sales
recorded by Global Refund at Value Retail
villages are up 51 percent compared
to 2008.
Most significant is the increase in tax
refunds for sales from the shoppers
from the Middle East, (+122 percent,
more than doubling last year’s levels)
and from China (+80 percent and
representing 23 percent of the total).
Tax refunds from shoppers from SE
Asia (+67 percent), Hong Kong (+93
percent) and Russia (+36 percent) also
enjoyed steady growth.
Kildare Village, near Dublin, continues
to swim strongly against the local economy
with sales for the first six months of
2009 up by over 12 percent and footfall by
20 percent.
Ingolstadt Village, near Munich is
recording strong YTD footfall (+27
percent) and sales increases (+30 percent)
driven by an increasing awareness of the
village among its target market and the
recent arrival of two dozen new brands,
Blanchette says.
(Continued on page 8)