Outlet Insight by FSP | Example European Outlet Centre Report

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FSP Outlet Insight - Example European Outlet Centre Centre Information Name:

Example Centre

Operator:

Country:

Germany

Owner:

Operator A Owner B

UN Region:

Western Europe

Centre Type:

Large - Upscale

Density Band (m2):

€5000 to €7000

GLA (€/m2):

21,000

Reported Footfall:

2,500,000

Opening Year:

2000

Brand Mix FISH

Merchandise Categories 60%

80%

% of C&F units

Classic

Young

F&B

Food

0%

Price Position

60%

Brand Coverage 40%

0% Local

Luxury

Premium

Upper Middle

Middle

Lower Middle

Value

0%

20%

Example Centre

Global Brand

20%

Super Regional

40%

% of units

% of units

Leisure

Household

Personal

Clothing and footwear

0%

20%

Family

20%

Assured

40%

40%

Regional

% of units

60%

Western Europe Large - Upscale (Average)

Consumer Demand by FISH FISH Spend - 60 Minutes

FISH Demand Index

Classic 18%

Family 30%

Index vs Average

160

Young 27%

140 120 100 80 60 40 20

Assured 25%

Young

Assured

Country Index

Family

Classic

Western Europe Large - Upscale (Index)

Population and Purchasing Power Population 30 minutes 60 minutes 90 minutes

Example Centre 519,672 4,572,187 5,982,059

Average 1,125,287 3,915,826 7,286,916

Europe Average 975,313 3,040,377 5,634,950

Euro Rank 116 49 83

Example Centre 10,842 91,511 116,656

Average 27,080 88,951 161,014

Europe Average 17,821 56,587 105,405

Euro Rank 95 42 76

Drivetime (mins) 39 27 254 183

Size

Pop'n (60 mins)

15,000 17,640

856,852 1,875,034

Purchasing Power (€m) 30 minutes 60 minutes 90 minutes

Competiton Name Nearest Capital Nearest City Nearest Outlet 2nd Nearest Outlet

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Capital C City D Outlet E Outlet F

www.fspretail.com

10/11/2015


Glossary Centre Type – FSP has classified European Outlet Centres on the basis of the scale and positioning of the retail offer. There are three types of position; • Luxury Schemes (e.g. Bicester Village) appeal to affluent, style conscious shoppers and international tourists. The offer contains a significant representation (~25%) of Luxury/Premium brands (e.g. Burberry, Polo Ralph Lauren), supported by occupiers (~40%) in the Upper-Middle price segment (e.g. Diesel, Gant, Guess, Tommy Hilfiger) • Upscale Schemes (e.g. Batavia Stad) tend to appeal to discerning, affluent, style conscious shoppers, domestic tourists and day visitors. There are fewer Luxury / Premium brands (~15% of occupiers), a strong presence of UpperMiddle positioned brands (~40%) and more Mid Price brands (~45%) e.g Gap, Mango, Levi’s, Superdry, Puma etc. • Midscale Schemes (e.g. Prague Fashion Arena) appeal to price conscious, label aware, mid market shoppers, domestic tourists and day visitors. They have virtually no Luxury / Premium brands (<5% of occupiers), Upper-Middle brands account for about 35% of occupiers and there is a strong presence (~60%) of Mid Price brands Drivetime Catchment – the area in which is possible to drive within an allotted amount of time (e.g. 30, 60, 90 minutes) from an outlet centre or town. The majority of outlet shoppers will come from within a 90 minute drivetime FISH – FSP segmentation system for fashion. This categorises brands by their targeted shoppers and links to consumer demand at catchment level. Fashion purchasing behaviour is largely determined by consumers’ self perception of their own ‘thinking age’ e.g. "What age-related values do I seek to project?” FSP identify 4 key age perceptions; • Young – Peer pressure to conform is strong and fashion is a powerful identifying statement • Assured – Young but no longer immature, or led by peer group pressure. They are able to make up their own minds, are sophisticated in their choices but do not adopt the attitudes, lifestyles or values typical of older self-perception Groups • Family – Dominated by the financial considerations of running the home and caring for the family, therefore precedence comes before self-indulgence. Members can, and often do, ‘migrate’ temporarily to the Assured or Classic segments when spending on ‘special occasions’ however, this depends on how much is available after essential family spending • Classic – Typically, though not universally, Post-Family and includes ‘Empty-Nesters’. In self-perception terms members have many similarities with Assured, differing only in possessing less self-confidence about the ‘rightness’ of purchase decisions, often expressed in terms such as ‘it’s a bit young for me’ Footfall – the estimated number of annual visitors to the centre Merchandise Category – the percentage of retail units by merchandise category (eg clothing & footwear, household goods) Occupier Coverage – the extent to which an occupier's outlet centre portfolio is geographically distributed; • Local: retailers are only found within one country e.g. Next, Bialetti, McArthur, Izac • Regional: retailers are dominant in one country, but also found in a number of others e.g. Tog 24, Kiko, XTI, Sisley • Super Regional: retailers are dominant in one or more countries, but found in smaller numbers across a wide range of other countries. e.g. Tom Tailor, Clarks Wolford, Jerem • Global: retailers are found in a broad spread across the world e.g. Nike, Hugo Boss, Mango, Adidas, Calvin Klein Population – those living in the target centre’s catchment compared to benchmark centres and European average Price Position – the typical price point served by clothing & footwear retailers within an outlet centre Purchasing Power – is a measure of disposable income. Purchasing Power figures in this report are sourced from MB Research and are 2013 estimates. Catchments are compared to benchmark centres and European average Sales Density – the productivity of retailer floor space (i.e. turnover per square metre). In the outlet centre industry it is normal convention to measure this in terms of gross floor space. All sales density figures are FSP estimates and exclude VAT Liability Disclaimer the information included in this report may include inaccuracies or typographical errors. Changes are periodically added to the information herein. Fripp Sandeman & Partners and/or its suppliers may make improvements and/or changes to the information within the report at any time. Fripp Sandeman &Ppartners and/or its suppliers make no representations about the suitability, reliability, availability, timeliness, and accuracy of the information contained in this report for any purpose. To the maximum extent permitted by applicable law, all such information and related graphics are provided "as is" without warranty or condition of any kind. Fripp Sandeman & Partners and/or its suppliers hereby disclaim all warranties and conditions with regard to this information and related graphics, including all implied warranties or conditions of merchantability, fitness for a particular purpose, title and non-infringement. Authorised Uses Members of the press or subscribers may cite a copy of each graph, slide, statistics or a portion of text less than a paragraph long contained in the Information, provided that they receive written authorisation from Fripp Sandeman & Partners to do so and provided that all portions of text are identified as "Source: FSP” All information is the sole property of Fripp Sandeman &Partners Page 2

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