Loving Outlet Shopping - Value Retail News

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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)
THE NINE CHIC OUTLET SHOPPING ® VILLAGES OF EUROPE BICESTER VILLAGE – LONDON LA VALLÉE VILLAGE – PARIS FIDENZA VILLAGE – MILAN LAS ROZAS VILLAGE – MADRID LA ROCA VILLAGE – BARCELONA MAASMECHELEN VILLAGE – BRUSSELS / DÜSSELDORF INGOLSTADT VILLAGE – MUNICH WERTHEIM VILLAGE – FRANKFURT KILDARE VILLAGE – DUBLIN POLO RALPH LAUREN, VERSACE, SALVATORE FERRAGAMO, DIOR, CALVIN KLEIN, BURBERRY, PAUL SMITH, BALLY, GIVENCHY, MULBERRY, HUGO BOSS, LORO PIANA, ARMANI, KENZO, JIMMY CHOO, DIESEL, MAX MARA, DUNHILL, TAG HEUER, LOEWE, TOMMY HILFIGER, D&G, CAROLINA HERRERA, TOD’S, ERMENEGILDO ZEGNA, FAÇONNABLE, DKNY, CELINE, WOLFORD, SMYTHSON, ANYA HINDMARCH, MARNI, ALEXANDER MCQUEEN, LUELLA, FURLA, TEMPERLEY LONDON AND MANY OTHER LEADING BRANDS HAVE DISCOVERED EUROPE’S EXCLUSIVE OUTLET SHOPPING VILLAGES CREATED AND SERVED BY VALUE RETAIL RUN BY RETAILERS AND SERVING RETAILERS 19 BERKELEY STREET, LONDON W1J 8ED, ENGLAND +44 (0)1869 323 757 WWW.VALUERETAIL.COM
Page 1 and 2: COVER STORY Loving Outlet Shopping
Page 3 and 4: PAGE 4 STAFF PETER ShARPE ICSC ChaI
Page 5: know-how Nobody knows Outlets bette
Page 9 and 10: Chart No. 2 FOC PERFORMaNCE Where t
Page 11 and 12: Building on strong brands BATAVIA S
Page 13 and 14: Weeks after its June opening, Desig
Page 16 and 17: PlaNNED PROJET UPDaTES Construction
Page 18 and 19: NEW PlaNNED PROJETS Premium to deve
Page 20: OPERaTIONS Gva outlet division laun
Page 23 and 24: Fashion Arena plans expansion DOUBL
Page 25 and 26: Filea Spa’s Mondovicino Factory O
Page 28: The first FASHION HOUSE Outlet Cent

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