2016 Brings Big Outlet Changes
Gloria Outlets opens in Taiwan
Factory Outlet Center Ochtrup near Münster, Germany
Inside: Planned Outlet Projects chart Outlet ownership changes Resolution’s new partnership
NEW: Outlet Perspectives Outlet growth in Germany And much more…
M C A RT HU R GL E N
N OV EN TA DI PI AV E PH ASE I V
A new phase for one of Europe’s most exciting designer outlets. For leasing contact Patrizia Pinato at Patrizia.Pinato@mcarthurglen.com or +39 02 888 36864.
M C ARTHURGLENGROUP.COM
Contents
Winter 2016
Vol. 12 No. 1
PAGE 6
PAGE 12
Inside
STaFF
IOJ/ICSC 1221 Avenue of the Americas 41st Floor New York, NY 10020-1099 www.valueretailnews.com ICSC EUROPE London, +44 20 7976 3100 icsc.europe@icsc.org Editor in Chief/Director Linda Humphers 1762 Emerald Dr. Clearwater, FL 33756 +1 727 781 7557 ext. 3 lhumphers@icsc.org Art Director/Ad Production Randy Gdovin +1 727 781 7557 ext. 4 rgdovin@icsc.org Advertising Sally Stephenson +1 847 835 1617 sstephenson@icsc.org Subscriptions/Customer Service Natasha Reed, Editorial Assistant +1 646 728 3558 nreed@icsc.org Contributing Writers/Editors Marie Driscoll 2015/2016 ICSC Officers Stephen D. Lebovitz,Chairman Thomas McGee, President and CEO Elizabeth I. Holland, Vice Chairman Robert F. Welantz, CRX, CSM, Past Chairman Glen Hale, Treasurer Patricia Norins, Publisher
International Outlet Journal is a publication for the non-U.S. factory outlet industry. Copyright © 2016
PAGE 16
4 IOJ’s Planned Outlet Centers chart shows 30 new projects
in the pipeline 6 Cover Story: McArthurGlen’s performance drives the developer’s growth in Germany and beyond 8 Ownership changes come quickly for outlet centers in Poland, the Czech Republic and Peru 10 Outlet Perspectives: IOJ’s new feature queries the industry on
burning questions. For this issue, outlet executives talk about who spends more, tourists or locals.
12 Stable stays the course with new outlet centers in Germany 14 Silk Road, RDM keep up a steady outlet pace in China 16 The Outlet! Company and Gloria Hotel Group team up on
Gloria Outlets in Taiwan 18 Nanjing East Outlets opens on a 77-acre site with plenty of room for expansion and recreation 20 Global News: Construction starts on Noventa di Piave’s fourth
expansion; Fashion House Moscow will launch second phase in November; Fashion House Bucharest, which opened in 2008, added three new tenants in late 2015; holiday sales were joyful for Realm’s portfolio; Rioja wins approvals for Mill Green project; Millerchip promoted to new position at Realm; Resolution Property enters a new retail partnership.
Advertiser Index Fashion House Group........................... BC ICSC European Outlet Conference......... 13 ICSC RECon........................................... 23
McArthurGlen.......................................IFC Neinver.................................................... 5
Wi nt er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Planned Centers Europe: Planned Phase 1 Outlet Projects, 2016-2019* name city country
Developer/Operator GLA sf GLA m2 date
McArthurGlen Designer Outlet Ghent
Belgium
McArthurGlen Group
215,000
19,995 2019
Prague Outlet Prague
Czech Republic
Prague Outlet
334,000
31,000 2016
Billund Quality Outlets
Billund
Denmark
Lalandia/REAM
129,600
12,000
Tallinn Outlet
Tallinn
Estonia
Suda Maja/Rohleder Lumby 134,500
12,509
Zsar Outlet Village
Vaalimaa
Finland
East Finland Real Estate
129,600
12,000 2017
Vaalimaa Luxury Outlet
Vaalimaa
Finland
Gruppo Arcotecnica
115,344
10,680 2017
Outlet Village Helsinki
Vantaa
Finland
Fortus and Glastad Farsund 108,000
10,000
Village d’Aquitaine
Bordeaux
France
Bergerac Outlets SAS
161,500
15,020
Marques Avenue Colmar
Colmar
France
Concepts & Distribution
193,800
18,023
Viaduc Village
LaCavalerie
France
Stone Market
64,670
5,988
The Village, Villefontaine
Lyon
France
Freeport Retail Ltd.
269,100
25,026 2016
McArthurGlen Designer Outlet Provence
Miramas
France
McArthurGlen Group
280,000
26,040 2017
Le Village des Alpes
Nimes (Bellegarde)
France
Bergerac Estates Limited
215,278
20,021
Leipzig Fashion Outlet
Brehna
Germany
Stable International
172,200
16,015 2016
Designer Outlet Village
Duisburg
Germany
Freeport Retail Ltd.
280,800
26,114 2017
McArthurGlen Designer Outlet Köln
Remscheid (Köln)
Germany
McArthurGlen Group
286,200
26,500 2017
Werl The Style Outlets
Werl
Germany
NEINVER
182,992
17,018 2016
MO Fashion Outlet
Budapest
Hungary
Rioja Developments
161,500
15,020
San Pellegrino Outlet Village San Pellegrino Italy
Arcus Real Estate
139,900
13,011 2016
Torino Outlet Village
Turin
Italy
Arcus Real Estate
209,900
19,521 2016
Centerfalls Designer Outlet Resort
Beirut
Lebanon
Sidcom
324,000
30,132 2016
Ghent
Amsterdam The Style Outlets Amsterdam
Netherlands NEINVER
204,520
19,020 2016
Zevenaar Fashion Outlets
Zevenaar
Netherlands Stable International
194,400
18,000 2018
Algarve The Style Outlets
Faro
Portugal
NEINVER
252,960
23,525 2016
Fashion House Outlet Centre Bucharest East
Bucharest
Romania
FASHION HOUSE Group
189,000
17,500 2016
FASHION HOUSE Outlet Centre St. Petersburg
St Petersburg Russia
FASHION HOUSE Group
398,000
37,014 2017
Viladecans The Style Outlets
Barcelona
Spain
NEINVER
285,252
26,528 2016
Istanbul Fashion Outlet
Istanbul
Turkey
ArcoRetail S.p.A.
559,700
52,052
McArthurGlen Designer Outlet Istanbul
Istanbul (Asia)
Turkey
McArthurGlen Group
215,300
20,000 2018
McArthurGlen Designer Outlet Istanbul
Istanbul (Europe)
Turkey
McArthurGlen Group
215,300
20,000 2018
30 planned centers
18 developers/operators 6,622,316
615,272
*11 are planning 2016 openings Source: VRN/IOJ
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I n t ernational Ou tle t Journal Winter 2016
Vicolungo The Style Outlets
Experience, Profitability and Future A quality shopping experience based on location, architectural design, brand mix and services. The Style Outlets and FACTORY outlet centres offer choices that are functional and efficient while remaining attractive to shop operators and visitors. Marketing and leasing strategies that ensure successful results, increasing sales and foot traffic with a total of 42 million customers visiting our outlet centres in 2014. And all this upholding the principles of economic and environmental sustainability.
311,600 SQ.M.
1,450 SHOPS
FRANCE GERMANY ITALY POLAND PORTUGAL SPAIN
Cover Story
MC adds FOC Ochtrup to its German portfolio Long a believer in the outlet potential of Germany, MCG adds a 3rd center there as plans for a 4th move forward. A new joint venture announced
At the center of Factory Outlet Center Ochtrup, which features neoclassic architecture, is the 123-year-old Gebrüder Laurenz textile building (top photo).
in November gives McArthurGlen the majority stake in Hütten Holding’s Factory Outlet Center Ochtrup near Münster in the Rhine-Ruhr region of northwestern Germany. MCG will operate the 18,000-m2 center, handling its day-to-day management, marketing and leasing. FOC Ochtrup was developed in 2004 by fashion and retail entrepreneur Thomas Dankbar, the principal of Hütten Holding. His vertical fashion company Bianca has its factory in Ochtrup, Already a successful center with more than 2 million visitors annually, Ochtrup Outlet is home to 65 tenants including Nike, Adidas, Liebeskind, Lacoste, Esprit, Bogner and Tom Taylor. McArthurGlen Group, which currently manages 22 centers in nine countries, already operates two designer outlets in Germany: McArthurGlen Berlin and McArthurGlen Neumünster, near Hamburg. The group is also investing a further €150 million in what will become its fourth German outlet center, McArthurGlen Remscheid
FOC Ochtrup Brands Adidas Airfield Alfi Allrounder Ara Shoes Armani Australian Footwear Bellybutton Bench Benvenuto Betty Barclay Bianca BiBA Björn Borg Blutsgeschwister 6
Bogner Fire + Ice Bugatti CECEBA Bodywear Cecil Clarks Comma Converse Crocs Daniel Hechter DC Depot Desigual Diesel DKNY Dockers
Dornbusch Eat Ants Ecco Edc by ESPRIT Esprit Eterna Fossil Gant Garcia Gelco Geox Gin Tonic Home Hunkemöller Jack & Jones
I n t ernational Ou tle t Journal Winter 2016
Jacques Britt Kahla Kanz Kneipp Lacoste Lambert Lemmi Levi’s Liebeskind Berlin Lindt Marc Aurel Marc by Marc Jacobs Marc O’Polo Junior Marc O’Polo Underwear Marc Picard
Maruti Mephisto Mexx Michael Kors More & More Möve Mustang Nike O’NEILL Footwear Only Otto Kern Patagonia Pieces Pierre Cardin Puma
Quiksilver Ravensburger Redford Roxy Salamander Samsonite Sanetta Schiesser Schwarze Rose Seidensticker Sigikid Signum Silit Skägen Sons and Daughters
Speidel Steiff Street One Superfit Tom Tailor Tom Tailor Denim Tom Tailor Underwear Vero Moda Watch Station WMF Zodiac
MCG performance drives Portfolio’s GLA expansion Within the next three years McArthurGlen plans the beginning of 2012 and the end of 2015 – an increase
to expand the GLA of its 22-center portfolio by 50 percent, growing to almost 900,000 m2 at the end of 2019 from 600,000 m2 today: 4 Seven new projects are under way or in planning, all due to open by the end of 2019 in Ghent, Málaga, Normandie, Provence, Remscheid and two in Istanbul. When completed, the projects will total more than 215,000 m2 of GLA. 4 Seven existing centers are expanding, delivering an additional 78,000 m2 worldwide. These expansions will be at McArthurGlen Designer Outlet Villages in Ashford, England; Naples, Venice and Milan, Italy; Parndorf, Austria; Roermond, The Netherlands; and Vancouver, Canada. McArthurGlen’s performance factors: l Portfolio turnover grew to around €3.5 billion between near Cologne, due to open in 2017. Gary Bond, McArthurGlen’s Managing Director of Development, told IOJ that MCG has been pursuing this center for a while. “We’ve known Thomas Dankbar for a numbers of years,” he said, “and we are delighted to be working with him on taking the center to the next level. Thomas has incredible contacts throughout Germany – we’re looking forward to working closely with him to secure permission to extend the center by a further 8,000 square-meters. I hope this will be the first of many new partnerships across Europe.” Ochtrup, 1½ hours north of Dusseldorf, has a huge catchment -- 13 million in a three-hour radius, Bond said, adding that McArthurGlen has access to the brands that German shoppers love. “Germany has always been a prime target for us because of its high wages and high spending – and it’s still underserved by retail.” Dankbar said that MCG’s track record will be good for the center and the community. “I am very proud of how Ochtrup has developed since we first opened 11 years ago with just 5,000 m2 of GLA,” he said. “It is now time to take the center to the next level. McArthurGlen’s skills, resources and ways of working will bring huge benefits to the center and to the local economy.” Factory Outlet Center Ochtrup is a 30 minutes from Münster, features neoclassical architecture and a brick and glass design. At its center is an iconic 1893 listed building that used to belong to the Gebrüder Laurenz textile company. c
of nearly 30 percent. l For 2015, McArthurGlen saw double-digit growth in both footfall and customer spend; tourism sales grew by more than 40 percent. l Tourism sales quadrupled between 2010 and 2014. Across the portfolio, the average spend per international customer is more than six times the average spend of local customers, with China as the biggest international customer, accounting for more than a third of all tax-free sales. In 2015 tax-free sales figures grew 25 percent over tax-free sales in 2014. McArthurGlen, which secures more than 600 leases a year, added 50 new brands in 2015 to its tenant line-ups. Some of the new brands include Coach, Cesare Paciotti, Frey Wille, J. Crew, Kiton, Ports 1961 and Thomas Sabo.
McArthurGlen has acquired a majority stake in Factory Outlet Center Ochtrup, which was opened in 2004 by Hütten Holdings. Wi nt er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Ownership Changes Parque Arauco expands outlet portfolio in Peru Santiago, Chile-based Parque Arauco in
December 2015 acquired 100 percent ownership of Strip Centers del Perú, giving it full control of two planned projects and three existing centers, including the 80,730-sf InOutlet Faucett in Lima. Parque Arauco had previously owned 51 percent of SCP and acquired the remaining 49 percent from prior investor Los Portales. In January Parque Arauco held the grand opening of InOutlet Premium in Lúrin, which is in southern Peru on the Panamericana Sur Highway. Brands tenanting the 91,800-sf center include Nike, Adidas, Tommy Hilfiger, Kenneth Brands at Parque Arauco’s InOutlet Faucett in Lima, Peru include Billabong, Cole, Calvin Klein, Dunkelvolk, and Marathon. Calvin Klein Jeans, RipCurl, Tommy Hilfiger and Quiksilver. Parque Arauco operates 8.8 million sf of retail space in Peru, Columbia and Chile. The portfolio includes three Klein, Converse, Gant, Lindt, Puma, Triumph and Vanity Fair. outlet centers in Chile and the two in Peru. Neinver will continue to manage Futura Park, which attracts The 274,500-sf Arauco Premium Outlet Buenaventura in more than 1.5 million visitors annually. Santiago, Chile opened in 2012. In 2014, the developer opened IRUS Fund portfolio comprises a total of 11 outlet the 70,000-sf Arauco Premium Outlet San Pedro in San Pedro schemes, located throughout Spain, Portugal, Germany, Italy de la Paz, Concepción, and the 75,500-sf Arauco Premium and Poland with a total GLA of 265,695 m2. and an appraised Outlet Curauma in Valparaíso. The company opened its first value of € 1,146,900,000. shopping center in Chile in 1982, entered Peru in 2005 and Neinver is under way on the 25,600-m2 Viladecans The Colombia in 2008. Style Outlets near Barcelona, set to open this year; the 17,000m2 Werl The Style Outlets (between Dusseldorf and Hannover) and the 18,000-m2 Amsterdam The Style Outlets in the Netherlands, set to open in 2017.
LaSalle investment group buys Futura Park Wroclaw
Wroclaw Futura Park in Poland has been sold by IRUS
European Retail Property Fund to LaSalle Investment Management for €27 million. The transaction took place in November, according to Neinver, which established the IRUS fund in 2007. The 20,200-m2 project coexists with Neinver’s 14,000-m2 Factory Wroclaw, which has a tenant line-up that includes Guess, Chicco, O´Neill, Caramelo, Reebok, Samsonite, Miss Sixty, BillaBong, Mango, Pepe Jeans, Polo Ralph Lauren, Adidas, Diesel, Hugo Boss, Tommy Hilfiger, Lee, Dockers, Rip Curl, Desigual, Levis, Nike, Gas, Benetton, Asics, Calvin
Freeport center sold to Austrian group; ROS will manage it In November the owners of Austria’s Fashion Outlet
Parndorf acquired Freeport Fashion Outlet in Hate, Czech Republic, from VIA Group Portfolio. Freeport Retail opened the 242,200-sf center in 2003. The site is at the Austria-Czech border 50 miles north of Vienna and was formerly a duty-free zone. Tenants include Asics, Clarks, Esprit, Huber, Juicy Couture, Lego Wear, O’Neill, Pearl Izumi, Ray Ban, Speedo, Tony Perotti, Wellensteyn and Zwilling. The Parndorf center is 30 miles southeast of Vienna. The purchaser, Fashion Outlet Parndorf Investment Group, is a JV of APM Holding and BETHA Zwerenz & Krause. An additional investor for this purchase is the pension fund Versorgungswerk der Zahnärztekammer Berlin & Babcock Pensionskasse VVaG. The Parndorf group has retained ROS Retail Outlet Shopping for management, marketing and leasing of the Freeport center. The immediate plan is to upgrade the tenancy, amenities and marketing of Freeport Fashion Outlet. ROS now provides services for six outlet centers – Fashion Outlet Parndorf (Austria), Freeport Outlet (Czech Republic), Shopinn Brugnato Outlet Village (Italy) and three in Germany, Designer Outlet Soltau, Among the 70-plus outlet tenants at Freeport Fashion Outlet in the Czech City Outlet Bad Munstereifel and Fabrikverkaufe Geislingen, a 19-tenant center near Stuttgart. c Republic are Adidas, Asics, Benetton, Desigual, Geox, Guess and Lacoste.
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I n t ernational Ou tle t Journal Winter 2016
ICSC European Outlet Conference 22 March 2016 Business Design Centre, London, United Kingdom In Association with:
ICSC Global Partners
Save The Date!
ICSC European Partners
FOR MORE INFORMATION, PLEASE VISIT WWW.ICSC.ORG/2016EOS OR CALL +44 20 7976 3100 #ICSCEUROPE
Outlet Perspectives
Who really spends the most at outlets? For the first Outlet Perspectives column, a new feature for IOJ, we traffic. The nationalities that buy the asked five industry executives to describe the difference in spend at outlet centers between tourists and local shoppers. As you might guess, tourists – especially internationals – tend to spend more than locals, at least on their one visit. However, our executives brought up a number of interesting side issues on this topic, such as how to define a tourist and the yearly value of shoppers who spend less per visit but come to the center more often. Another surprising aspect of the tourist/local equation turns out to be satisfaction levels – those who travel the furthest, well, read on to find out.
Colin Brooks
M a n agin g D irector, REAL M An analysis of tourist shoppers within the Realm portfolio of outlet centres in the UK reveals three key trends:
The further Brooks people travel, the greater their one-off spend Tourists adopt a mindset that helps them spend as they tend to be more relaxed and open to impulse purchasing. There is a novelty value, too, from seeing brands and products that are not normally so readily available to them in their home town or country, and they are inclined to take full advantage of hard-to-find items. The further people travel, the less satisfied they are The counter-intuitive relationship between greater spending and lower satisfaction is an example of the sunk-cost bias – a phenomenon which makes us behave and shop irrationally. The longer range outlet shopper may well have set off with the intention of buying shoes, luggage and cosmetics but they may discover a shortage of product in their specific size or preferred brand. At this point the voice inside their head will say “I have travelled nearly two hours to get here; there must be something I can buy.” This response results in their being more purposeful in an effort to 10
I n te rnational Ou tle t Journ al Winter 2016
justify the trip, resulting in a higher spend but overall lower satisfaction as their original desires were not met.
Locals are loyal; tourists are fleeting Local shoppers from the sub 30-minute drive-time have an annualised spend that is on average four times the value of tourists who originate from the 90-minute-plus catchment. Longer range shoppers are clearly less susceptible to tactical advertising, which in turn influences many marketing decisions. The return on promotional investment is easier to establish with a local, loyal and more engaged shopper who spends less during the visit but more throughout the year.
Carlos González
Managing Director, NEINVER Shopping tourism has become an often-decisive factor in consumers’ travel experiences. Although Europe lags behind Latin America, Japan and emerging markets González in this area, we have detected an increase in foreign visitors who come to outlet centers proactively, in search of fashion and accessories. Targeting both local and foreign shoppers, certain centers in The Style Outlets platform, including those in Italy and Germany, find that tourists account for about 8 percent of their foot
most include Chinese and Russian visitors, who continue to spend more than average, and we have seen increased spending by visitors from Kuwait, Saudi Arabia and, to a lesser extent, Switzerland. As shopping tourism keeps growing (it could well see an 88 percent increase by 2019, according to Euromonitor), the retail sector’s strategy must focus on meeting the wants and needs of a fast-growing segment of its customer base. In fact, in 2014 alone, this type of traveler spent €217 million on brands worldwide, and therefore it is vital to work towards customizing offerings and generating synergies with public institutions and industry organizations.
Ken Gunn
Par tn er an d Di rec tor, FS P The contribution made by tourists to European outlet performance ranges from zero to 60 percent of sales. Where an outlet centre sits on this range is determined by many factors, including Gunn the desirability of its brands, quality of environment and architecture, proximity to major tourist attractions, provision of relevant services (e.g., tourist information, tax refund and bureaux de change) and the ability of managers to provide first-class customer service (in many languages) and to work proactively and strategically with domestic and international hospitality industry partners. It is easy to simply think of tourists as brand-hungry Chinese or Russians but the reality is much more diverse. While some centers serve the world’s major cities, there are also outlet centres serving large domestic tourist markets (such as Clarks Village and Shopinn Brugnato) and others that are daytrip magnets for large regional populations (such as Gunwharf Quays
and McArthurGlen Roermond). Nearly half of tourism trips involve visiting friends and families, so even cities with relatively few recognisable attractions can still attract large numbers of domestic tourists. When FSP undertook a visitor survey at a rural site in a relatively unheralded part of the UK, 75 percent of respondents who had travelled for longer than 15 minutes considered themselves to be on a day out rather than a shopping trip. This tourist or leisure mindset is one of the key strengths that differentiates outlet and full-price shopping venues, and it’s one of the strongest opportunities for further growth. The food and beverage offer at many outlet centres, particularly those in France and Germany, is weak and out of step with the requirements of many visitors. Tourists typically spend 25 percent more on F&B than they do on fashion, but F&B is less than 5 percent of sales at most outlet centres on the European continent. There are also opportunities for leisure, and indeed, many outlet centers, such as Gunwharf Quays or Zweibrücken The Style Outlets, benefit from their adjacency to major leisure attractions. International tourists can spend nearly twice as much per visit as the average outlet visitor while domestic tourists spend around one and a half times the average. While this sounds very attractive, it is worth remembering that the potential for repeat visits during the year is limited. Over the course of a year for example, FSP’s analysis of outlet shopper value shows that regular visitors from the inner catchment can in fact spend more than three times the average value of a tourist making a single annual visit. Seasonal patterns can also result in substantial swings from quiet to heavily congested periods, and for some consumers, this can be a reason not to visit. It is therefore important to plan seasonal promotions carefully and to seek to manage visits across the year. In FSP’s experience, tourists represent core business for some outlet centres, but simply icing on the cake at others. It is important for operators to recognise the unique tourist/resident value opportunities that exist at every site and to adopt an appropriately balanced approach to attract visitors of all types.
Whether they have travelled halfway around the planet, or just around the block, the best outlet centres work hard to create a sense of enjoyment in their positioning, seek to curate the perfect day out experience and provide exceptional customer service, which makes all visitors feel that they are valued guests.
Brendon O’Reilly
M anag i n g Di rec tor , FASHI O N HO U S E Grou p Our experience in Fashion House Group is obviously based on our business focus on the emerging markets of Central & Eastern Europe and Russia, which have many different O’Reilly characteristics compared to the outlet sector in more developed territories. Consumers in these markets, particularly enthusiastic to acquire Western European and U.S. brands, use outlet centers much more regularly, spending less money per visit but making regular monthly visits, compared to the norms of the more developed economies. Therefore, what is really important for our business is the lifetime value of regular customers, which we see by looking at their spend with us over a year rather than only looking at an average transaction value per visit. And, of course, there’s more value in regular customers’ referrals and recommendations. What is the same in CEE/Russia as in the global outlet sector is that consumers who travel from further away tend to spend more per visit and stay longer. That is practically a universal truth, for sure. In our Fashion House Outlet Centres, either in a resort such as Gdańsk or in the capital cities Warsaw, Bucharest and Moscow, there is a distinct tourist element to the customer base. Many are “shopping tourists” from neighbouring countries with high prices or limited supplies of Western goods. But normally, a high-spending tourist may well visit only one time, whereas our enthusiastic local fashionista may come dozens of times, such that the lifetime value of the local, regular shopper will always be greater.
Simon Rosenberg
Senior Retail Consultant, FSP Since the 1980s the evolution of the outlet centre has been one where the role of experiential tourism has begun to play an integral part of the industry’s focus and growth. Traditionally Rosenberg the outlet centre role was to clear high volumes of overstock from mid-market brand names to domestic shoppers. Global brands would scorn at the idea of having a large exposure in such a potentially brand damaging channel. Today’s 4th generation outlets (The Village format) have given shoppers a destination that is fun, mixed-use, enticing and is in effect a destination for a family day out and in some cases an evening activity, too. With larger catchments being drawn to such experiences, global brands are increasingly enhancing their stores to attract those shoppers in order to see growth and profitability in their own retail portfolios. The international tourist is an important catalyst for spreading loyalty and engagement back home. Once a customer has bought into the outlet equation of brands and values, she is more likely to seek out the brand in other distribution channels around the world. It is a route to feeding brand loyalty via the medium of price, promotion and experience. Such is the importance of the international tourist. More and more operators seek to use translated POS material, targeted promotions, shuttle buses and link trips to ensure that whoever the shoppers are and wherever they originate from, they will feel compelled to spend. New outlet developments are now primarily located close to major cities with strong motorway and/or rail links. We know that one key to success is making sure that tourists from anywhere can arrive at the outlet centre with seamless efficiency. c For the Spring 2016 IOJ, Outlet Perspectives will ask brands, “What common denominators do you see in the centers where your stores perform the best? How about commonalities in centers where your stores struggle?” If you would like to provide your perspective on this question in 250 words or less, please send it to IOJ editor Linda Humphers at lhumphers@icsc.org by Tuesday, 1 March. Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Center Opening
Stable stays the course with FOCs in Germany With the 2015 opening of Fashion Outlet Montabaur, Germany now supports 12 outlet centers totaling almost 230,000 m2. Stable will add another in April. B y L IN DA HUM P H E RS E d i to r i n C h i e f
When Stable International opened
The 14,000-m2 Fashion Outlets Montabaur has seen robust footfall since its opening day on July 31, 2015.
Fashion Outlet Montabaur tenants Asics Bassetti Benetton Better Rich Betty Barclay Bruno Banani Bugatti Camel Active Carl Gross Clarks Columbia* Comma Converse 12
Desigual Diesel Dressler Esprit Estella Fossil Gaastra Garcia G-Star Hunkemöller Juvia Kunert La Place
Levis Marc O Polo Marvelis Melvin and Hamilton Michel Herbelin Möve Mustang Nike Neill Odlo* Olea Pano Rich and Royal
I n te rnational Ou tle t Journ al Winter 2016
S. Oliver Salamander Schneiders Society Shop Stefanel Tom Tailor Tommy Hilfiger Triumph Vingino WMF *opening soon
Fashion Outlet Montabaur more than 85 percent occupied on July 31, 2015, the developer knew the center would perform well. First, the scheme is right on the A3, between Cologne and Frankfurt, where 165,000 cars pass daily – the A3 is Germany’s second-most frequently traveled motorway. And the center is just two minutes from the bustling Inter City Express rail station. So when 52,000 people visited Fashion Outlet Montabaur in its first three days, Stable was even more confident that the center’s performance would grow. Five months later, more than 1.5 million shoppers had visited the center and turnover is now 20 percent above forecast. The center’s sleek and open architecture perfectly fits the outlet center of the future. Montabaur is in the geographic center of the two densely populated regions of RhineMain and Rhine-Ruhr. With a population of 17.5 million within 90 minutes, and an FOCrelevant demand volume of €4.9 billion, there is ample, and now proven, sales potential in this market. IOJ first reported on Fashion Outlet Montabaur in 2008, which shows the commitment required to develop an outlet center in most of Europe. Between economic downturns for consumers, investors and brands, tough approvals processes by concerned municipalities, and tenant radius restrictions (now disallowed), the outlet business isn’t for the faint-hearted. But now that Stable has opened the 14,000m2 Fashion Outlets Montabaur, the company’s second German project will open in April.
Fashion Outlet Leipzig, also on the planning list since 2008, is already 90 percent leased. Phase 1 will be 11,000 m2 with space for 65 tenants, which will be followed by a second phase of 8,000 m2 that will add another 50 shops. The center’s site is within the triangle of Leipzig, Halle and Dessau, near the crossroads of the motorways A9 (from Munich to Berlin) and A14 (from Dresden to Hannover). The one-level center, which will be enclosed to accommodate the weather in the region, has been designed in the style of a Victorian market hall. In other news, Fashion Outlet Rosada, which Stable manages, reported a 12 percent increase in sales for 2015 compared to 2014. An 8,000-m2 expansion and complete makeover of the common areas will open there in May, bringing the center to 24,396 m2 and more than 100 stores. Fashion Outlet Rosada is in Roosendaal, the Netherlands, between Rotterdam and Antwerp. c
The architecture of Stable International’s Fashion Outlets Montabaur shows the clean, sweeping line of steel and glass of modern Germany.
Existing Outlet Centers in Germany Center Developer/Operator GLA sf Montabaur Fashion Outlet Stable International Development BV 156,600 McArthurGlen Designer Outlet Neumünster McArthurGlen Group 291,150 Designer Outlet Soltau Resolution Property 145,000 Factory Outlet Center Ochtrup McArthurGlen/Retail Development Group 183,000 McArthurGlen Designer Outlet Berlin McArthurGlen Group 226,000 Designer Outlets Wolfsburg Outlet Centres International 189,000 Seemaxx Factory Outlet Center Hesta Immobilien GmbH 48,440 Ochtum Park Mullmann & Grundstucksverwaltung 66,960 Ingolstadt Village Value Retail PLC 221,000 Wertheim Village Value Retail PLC 225,000 Zweibrucken The Style Outlets NEINVER 226,000 OutletCity Metzingen Holy AG 484,400 12 centers 2,462,550
Source: VRN/IOJ
GLA m2 Opened 14,564 2015 27,077 2012 13,485 2012 17,019 2012 21,018 2009 17,577 2007 4,505 2006 6,227 2006 20,553 2005 20,925 2003 21,018 2001 45,049 1995 229,017
Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Center Opening-Asia
Silk Road, RDM keep steady pace in China Silk Road, which opened its third outlet center in 2015, readies three more for this year and and two for 2017.
The 31,034-m2 Florentia Village Guangzhou, which opened September 24, 2015, is Silk Road/RDM’s third outlet center in China since 2011.
Silk Road’s Steady Pace in China Florentia Village locations GLA sf Beijing-Tianjin 538,200 phase 2 86,100 Shanghai 538,200 phase 2 322,900 Guangzhou-Foshan 333,700 phase 2 177,600 Chengdu 538,200 Wuhan 473,600 Hong Kong Elite 50,382 Chongqing 538,200 Qingdao 538,200 8 Florentia Villages 4,135,282
GLA m2 50,053 8,007 50,053 30,030 31,034 16,517 50,053 44,045 4,686 50,053 50,053 384,581
Opening 2011 2017 2015 2017 2015 2016 2016 2016 2016 2017 2017
Source: RDM Asia
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I n te rnational Ou tle t Journ al Winter 2016
Chinese consumers who enjoy dressing in Italian designer apparel and accessories – at bargain prices – have found a new Silk Road to these affordable luxuries in the spreading network of Florentia Village Designer Outlet centers. The joint-venture of Silk Road Holdings and RDM Asia (which handles operations, marketing and leasing) has opened three Florentia Villages in the leading metro areas of Beijing-Tianjin, Shanghai and the most recent, in Guangzhou. The JV has also broken ground on two more centers with late 2016 opening dates and has another pair for 2017. In addition to those projects, as well as expansion to its Beijing and Shanghai centers, the team also plans a boutique-sized center of just 4,686 m2 set to open this fall in Hong Kong. The two-level center will be near the Kowloon Commerce Center in the Kwai Chung area. By yearend 2017, the eight Florentia Villages will total nearly 385,000 m2. Silk Road anticipates serving 30 million shoppers annually in its eight outlet centers – the three operating Florentia Villages drew 8 million visitors during 2015, with combined retail sales of $700 million, according to RDM. The latest milestone was the Sept. 24 opening of 31,034-m2 Florentia Village Guangzhou-Foshan. RDM plans to open a 16,517-m2 phase 2 by this May, to bring total Guangzhou GLA to 47,551 m2. The center opened with about 75 signed tenants, including 15 with store openings planned for year this year. The FV Guangzhou site, on Shugang Road by the Guangzhou West Expressway has a 90-minute catchment of at least 28 million people and is within a 20-minute drive of the city centers of Guangzhou and Foshan. FV Guangzhou
Florentia Village Guangzhou’s Venetian-style architecture goes hand in hand with the center’s “visit Italy without going to Italy” marketing campaign.
planned to offer both a traditional lion Guangzhou for their first outlet stores provides free shuttle bus service every dance and a Venetian Carnevale parade. 30 to 40 minutes connecting to Guang- in southern China. RDM Asia is a unit of Florence, Florentia Village centers offer a tenzhou South Railroad Station, a massive Italy-based Fingen Group, a diversified ant mix tuned toward luxury brands, modern facility that accommodates real estate, textiles, retail and financial four railways including high-speed train with iconic Italian designers from business that has a JV with McArthurArmani to Versace prominent among service, as well as subway service. Glen for five outlet centers in Italy. them. Silk Road promotes the “Visit The center features an underground RDM’s partners in Silk Road Holdings Italy without going to Italy” theme, facility for a portion of its 2,500 parking include Hong Kong-based Gaw Capital, amplified by extravagant Venetian-style spaces, a concession to the April-toLondon-based TH Real Estate and architecture. For the Chinese New Year September rainy season. celebration in February, FV Guangzhou New York-based Waitex. c “Consumers have shown an equal display of interest under difFlorentia Village Guangzhou Tenants ferent weather conditions. Puma Adidas Fed KFC the footfall has performed Sammy Aigle Fila Lacoste steadier than the expectation,” Samsonite Anagram Folli Follie Lancy * * Maurizio Lupi, managing direcSasa Armani Furla Lee * tor, RDM Asia, told IOJ. Skechers Bean Pole Gant Levi’s * In a centerwide promotion Starbucks Brooks Brothers Gap Lily during the first two weeks, shopS.T. Dupont Calvin Klein Jeans G-Star Raw Marisfrolg * pers who spent €420 in one day Stella Luna Calvin Klein Performance Guess MaxMara * received a €15 gift card, plus Subway Calvin Klein Underwear Häagen Dazs Michael Kors * a scratch card with chances to Swarovski Charriol* Hazzys/Camicissima Moussy win merchandise from Bottega Teenie Weenie Clarks Hugo Boss* Navigare Veneta, Celine, Prada and other Test-Tube Coach Hush Puppies New Balance tenants. Lupi said the U.S.-based Timberland Columbia Sportswear Inniu Nike brands Coach, Gap and Nike Converse I.T. The North Face Todllon were among the most popular Tommy Hilfiger Crocs Jack & Jones Ochirly stores during the opening period. Under Armour* Daniel Hechter Jeep Only Etro, Folli Follie, Inniu, IT, J. Venchi* Ecco Jessica Episode* Philipp Plein* Linderberg, Jorya, S.T. Dupont Versace* E. Land J. Lindeberg Pizza Hut and Swarovski were among the Etro Jorya Ports * opening soon global brands that chose FV Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Center Opening-Asia
Gloria Outlets draws Taiwan’s value shoppers The Outlet! Company and Gloria Hotel Group team up to bring Western-style outlet retailing to Taiwan. The retail scene in greater
Taipei, capital of the island nation of Taiwan, has a new landmark: The 210,867-sf Gloria Outlets opened by Outlet! Company and Gloria Hotel Group on Dec. 18. The center features 90 retailers in a largely open racetrack layout, something of a novelty for Taiwanese shoppers. Plans call for three phases that will ultimately lead to a 590,000sf center with more than 250 stores. The site is in Qingbu, a 45-minute drive southwest of central Taipei on Local Road 31 just south of the interchange with Airport Expressway (Highway 2). More than 9 million people reside within 40 miles of Gloria Outlets in the dense Taipei-Keelung-Taoyuan metropolis of northern Taiwan. A 2015 study by CBRE showed that Taipei is the world’s fourth most-sought market by global retailers, behind Tokyo, Singapore and Abu Dhabi. Gloria Outlets has 2,500 underground parking spaces, is directly connected to the existing high-speed rail network, and a platform at the center will connect to an under-construction rail link to the main airport, Taoyuan International. At the grand opening, many consumers arrived by high speed rail, which connects to the relatively small second floor that houses the 600-seat food court and a dozen retailers, including Nautica, Nike Factory Store, Tommy Hilfiger and Under Armour. Long lines formed at these stores and in front of other brands. Roots, a Canadian lifestyle brand popular in Taiwan, offered 90-percent discounts on many products. Hugo Boss, Timberland, Tommy Hilfiger and Tumi were among retailers with price cuts of 50 percent to 70 percent. Swarovski shoppers signed up for chances to win a limited edition bracelet. Retailers taking part in a centerwide promotion for extra-savings coupons included Aigner, Armani, Polo Ralph Lauren and Roberto Cavalli. Gloria Outlets’ developers retained Architects Orange, the California-based firm that has designed outlet centers for Simon, including Desert Hills Premium Outlets in Los Angeles and Yeoju Premium Outlets in South Korea. Surfaces are generally pastel, sleek and smooth, accented with rough stone and marble textures. Two sunken plazas help illuminate the parking areas below the 16
I n te rnational Ou tle t Journ al Winter 2016
Designed by architects from California, Gloria Outlets has the pastel colors and open plan of outlet centers in the U.S.
main floor. The larger plaza provides common space for special events with fountains to tease the senses. The JV has already begun construction on a 140,470-sf phase 2 with a planned opening by holiday 2016. Further plans call for a 237,900-sf phase 3 to open by holiday 2017.
Gloria Outlets Tenants
Shoppers have easy access to Gloria Outlets, which is directly connected to Taiwan’s high-speed rail network and will soon link to the island’s main airport.
Gloria Hotel Group is based in Taipei, and The Outlet! Company has offices in Taipei, Shanghai and Hong Kong. The duo started a long-term development and management partnership in 2009. For Gloria Outlets Taiwan they worked with Cathay Life Insurance, the master plan developer for the 54-acre site where hotel, entertainment and office space will also be developed. TOC’s top executives, Daniel Kelly, president, and Anjelica Manalo, VP-finance and administration, were previously with Simon (then Simon Chelsea Premium Outlets) in its Asian outlet ventures. Rick Mao, VP leasing, has expertise in tenant negotiation and management for luxury retail properties in the Taipei market. TOC currently handles the leasing and management of two outlet centers in mainland China: Mega Mills in Shanghai, open since January 2013, and Nanjing East Outlets, which opened in October 2015 (see story on page 22). The greater Taipei region is home to at least three other outlet centers, although the layouts and shopping experience are quite different from the Gloria Outlets model. l The multistory Leeco Outlet Neihu District on the east
0918 2020 EYEhaus Agatha Paris Agnes b. Aigner Alexandre de Paris Arena Armani Outlet Artifacts Best Hot Pot Restaurant Brooks Brothers Calvin Klein Underwear Chloe Chen Coach Columbia The Cosmetics Company Store Cotelac Desigual Diane Von Furstenberg Dubu House Korean Cuisine Dunhill Ecco Eden Park Paris Esprit Fei Yue Ji Thai & Vietnamese Cuisine Folli Follie Funbox GMP Baby Gyu-Kaku Japanese Grill Han House Korean Cuisine Hanlin Tea Room Hao Pin Teppan Dishes Harujuku Kitchen Hengdeli Hugo Boss iCB JEpoque J. Lindeberg Stockholm Jeep Jimmy Choo Jorya Outlet Joseph Kenzo Kipling Kuo Health Chinese Medicinal Cuisine La Bonta Italian Cuisine Laetitia Puff & Dessert Les Enphants Plus Les Nereides LeSportsac Levi’s
Loewe Michael Kors Moiselle Mothercare Mountain Hardwear Napapijri Nautica New Balance Nike Factory Store Nike Golf Nishiki Ramen Nordic Orobianco Paul & Joe Paul Frank Philips Police Polo Ralph Lauren Factory Store Puma Ramen Sanji River Woods Roberto Cavalli Roots Roots Lodge Café Salvatore Ferragamo Samsonite Sanmin Sentosa Singaporean Cuisine Starbucks Coffee Subway Superdry Swarovski Swatch TGI Fridays Timberland Tin Café Tod’s Tommy Hilfiger Tough Jeansmith Triumph True Religion Trussardi Tsao Di Ting Traditional Taiwanese Food Tumi UGG Australia Outlet Store Under Armour Woogo Smoothie Xian Chu Teppanyaki Zwilling J.A. Henckels
side of the city opened in 2005 l Leeco Outlet Gongguan District in the university area of Taipei opened in 2012 l The 500,000-sf E-DA Outlet Mall, in Kaohsiung, east of Taipei, is part of a complex that includes an amusement park, entertainment venues, hotels, residences and schools. Direct competition is due for Gloria Outlets in the form of Mitsui Outlet Park Linkou in New Taipei City, close to Taoyuan International and less than 20 miles from Gloria Outlets. Phase 1 of the planned 485,000-sf center is slated to open by this spring. The project is a JV of Japan’s Mitsui-Fudosan and Taiwan-based Farglory Group. c Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Center Opening-Asia
Nanjing East Outlets opens with fireworks The center’s 77-acre site has plenty of room for expansion and for family recreation activities, including picnic space, a Ferris wheel and a 9-hole miniature golf course.
The Outlet! Company and WB Outlet Developments worked together to develop Nanjing East Outlets; a second phase of 114,000 sf will open in 2017.
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I n te rnational Ou tle t Journ al Winter 2016
Nanjing East Outlets, a joint-venture of The Outlet! Company and WB Outlet Developments, grand opened in Zhenjiang City on Oct. 1, 2015. Although the 239,206-sf center soft-opened in February 2015, the autumn event was timed to coincide with and celebrate the National Holiday in China. Merriment was in the air, with traditional drum shows, fireworks, flash mob dances and a fashion show featuring wares from more than 50 tenants including Adidas, Armani, Coach, Ermenegildo Zegna, Gap, Nautica, Nike, Replay, Ted Baker and Under Armour. Shoppers tapped into cash coupons and gift-with-purchase certificates through both in-store promotions and centerwide lucky draws. The GM of the 4,736-sf Coach store said the retailer achieved the highest opening-day sales of any Coach outlet store in China. The Nanjing center is at the junction of the S243 Highway and the G25 Expressway, about 30 miles south of downtown Nanjing, and it is served by shuttle bus and high speed rail. The 77-acre site has ample space for family recreation, including a lakeside park with pedal boat rentals, picnic grill space, children’s playground equipment and a nine-hole miniature golf course topped off by a 165-ft Ferris wheel. Eight food retailers are arrayed around the central food court, which seats 500. TOC’s partner, WB Outlet Developments, is a Hong Kong-based consortium that was key in the land acquisition for the site. Nanjing, the capital of Jiangsu province, has a metro population of 8.2 million. Construction on a 114,100-sf phase 2 at the center will start this year and open in
Nanjing East Outlets Tenants
summer 2017. A 104,400-sf phase 3 has also been proposed. TOC’s first Chinese project, Mega Mills, opened in Shanghai in January 2013. The two-level, 575,000-sf center is a joint-venture with Shanghai Welead Investment Co., a unit of the diversified Pearl River Investment Group. That center includes a nine-screen cinema, a 600-seat food court, a selection of fast casual restaurants and more than 150 retailers, including Balmain, Furla, Gucci, Michael Kors, Roberto Cavalli, Shanghai Tang, Ted Baker and Versace. In December 2016, TOC opened with Gloria Hotel Group the 210,867-sf Gloria Outlets in Taiwan (see page 20 for further details). The Outlet! Company has not yet started a third mainland China project, but is considering both the Wuhan and Zhuhai markets. The developer is also exploring the potential for outlet centers in Philippines and Thailand. c
361° Able Jeans Adidas Aigle Aigner Anne Fontaine Arc’Teryx Armani Beaume Braun Buffel BTR CGX Charriol Coach Columbia Converse Crocs Daniel Hechter Delsey Devil Nut Diesel Dkode Ecco Edwin Eland Embry Form Eminent
Erdos Ermenegildo Zegna Etam Fabi Ferre Milano Fila Folder Gap Gas Giovanni Valentino Hasbro He Feng Ting Ramen Interesting Outdoor I.T. Jack Wolfskin JB Martin Jorya Kailas Kolping Levi’s Mandarin Collar Modesto Bertotto Mothercare Nautica Navigare New Balance Nike
Northland One Way Palladium Patagonia Paul & Joe Peuterey Plory Ports Rebecca Replay Rothschild Royalway Salomon Samsonite Satchi Seiko Starbucks Stella Luna Swarovski Ted Baker Teenie Weenie Test-tube Tru Trussardi UGG Under Armour Yooki
The grand opening of Nanjin East Outlets was delayed to take advantage of China’s National Holiday, a time of huge promotions and merriment. Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Global Briefs Resolution Property enters a new retail partnership Resolution Property has formed a joint venture with the Chinese investment group Fosun Property. Formed in June 2015, the entity is called Resolution Property Investment Management and will act as Fosun’s exclusive investment manager across Europe. Through the RPIM joint venture, Fosun Property will be the cornerstone investor in the forthcoming Resolution Real Estate Fund V. Resolution Property, which is approaching its 15th year as a value-add investor in the European retail property sector, will target Western and Central European markets, especially gateway locations in the United Kingdom, Germany, France, Netherlands, Belgium, Spain, Scandinavia, Poland, Hungary and Czech Republic. The company will build on its extensive track record and proven asset management approach as a pioneering value-added investor in European outlet and shopping center assets. It will seek opportunities to reposition existing assets through reconfiguration, extension, redevelopment, rebranding and re-engineering of the tenant line-up. Meanwhile, Resolution is busy: l Construction of the 8,000-m2 extension at Rosada Fashion Outlet in Roosendaal, Netherlands, will open in May. New tenants will include Cecil, Street One, Adidas, La Place, Van Gils, G-sus and Gentiluomo. l At Designer Outlet Soltau, centrally located between Hamburg, Bremen and Hanover in Germany, Puma has opened
Construction of the 8,000-m2 extension at Resolution Property’s Rosada Fashion Outlet will open in May. The center is in Roosendaal, Netherlands.
a 370-m2 store. The center is now fully let with 2015 sales up 12 percent and footfall up 7 percent. l More than 40 percent of units in the 12,000-m2 first phase of the newly acquired Honfleur Outlet Centre in Normandy are in legal hands or advanced negotiations. Phase 1 is due to open in Q2 2017. The development is a joint-venture with SHEMA, the French public/private partnership.
“The demand from top European brands for strategically-located, high quality outlet centers remains strong, reflecting high footfall and healthy customer spending power in key regional markets,” said Michel Nangia, principal at Resolution Property. Resolution Property, founded in 1998, has an outlet portfolio that includes the aforementioned Rosada, Soltau and Honfleur centers, as well as McArthurGlen Designer Outlet center in Troyes and in Roubaix.
Holiday sales joyful for Realm’s portfolio
Resolution acquired the 13,500-m2 Designer Outlet Soltau in 2014; the three-year-old center is at the center of a triangle formed by Hamburg, Hannover and Bremen. 20
I n te rnational Ou tle t Journ al Winter 2016
The Realm portfolio of UK Outlet Centres delivered particularly strong year-end and New Year trading figures. The 2015 totals for footfall were up by 5.1 percent and corresponding turnover increased by 11.25 percent. While many full price retailers suffered in the immediate run up to Christmas, the Realm portfolio saw turnover swell by 6.82 percent in December as a whole, with a stellar 20.8 percent uplift between Boxing Day and New Year. The categories of sports and outdoor wear, which have always been outlet
staples (there is a Nike in three out of every four outlet centers in Europe), are now very much in ascendancy as the nation becomes more preoccupied with health, fitness and wellbeing. Footwear and apparel for running, gym and leisure grew by 35 percent across the portfolio. The eight UK centers operated by REALM are: l Clarks Village in Street l Freeport Braintree l Freeport Fleetwood l Freeport Talke l Junction 32 in Castleford l Lakeside Village in Doncaster l London Designer Outlet in Wembley l Livingston Designer Outlet in Scotland
Realm’s 140,000-sf Lakeside Village, which opened in Doncaster, England in 1996, is one of Europe’s oldest outlet centers.
Construction starts on Noventa di Piave’s fourth expansion McArthurGlen has begun construction a €50 million expansion of its award-winning Noventa di Piave outlet center near Venice. Polo Ralph Lauren was the first brand to sign up for a major store in the extension, which is due to open by spring 2017. Opened in 2008, and with three expansions under its belt since then, McArthurGlen Noventa di Piave is one of Europe’s most visited designer outlets, welcoming more than 3 million customers annually. Brands operating
outlet concepts in the center include Armani, Bottega Veneta, Brioni, Burberry, Fendi, Ferragamo, Gucci, Loro Piana, Marc Jacobs, Prada and Versace. Over the past three years, the center has recorded a 59 percent increase in visitor numbers and 69 percent increase in sales. A popular destination for international travellers, long-haul tourist sales represent 25 per cent of the center’s total turnover. The stellar performance of the center is why Noventa di Piave is a major flagship in the McArthurGlen portfolio of 22
designer outlet centers, including five in Italy. The is 40 km from Venice with no direct outlet competition and with a population of nearly 5.5 million within a 90 minute radius. The 26,000-m2 center has 132 luxury and designer outlets, as well as eight cafes and restaurants, The newest expansion will add 6,000 m2 and 25 stores, as well as 1,000 parking places, bringing the center’s total to 3,500 parking spots. Winner of the prestigious ICSC Europe’s ‘Best Established Shopping Centre’ Award 2015, the Noventa di Piave designer outlet village features McArthurGlen’s signature architectural style of luxury piazzas, open walkways and landscaped gardens – in Noventa’s case inspired by the elegant palazzos of Venice and Treviso. McArthurGlen is also expanding four of its centers this year: n McArthurGlen Parndorf, in Austria, 5,000 m2 n McArthurGlen Ashford, in England, 9,290 m2 n McArthurGlen Serravale in Italy, 12,500 m2 n McArthurGlen RoerMcArthurGlen’s Designer Village Noventa di Piave near Venice is one of the developer’s top mond in the Netherlands, performers with a 69 percent increase in sales in the last three years. 15,000 m2 Wint er 2 0 1 6 I nt e r nat io na l O u t l e t J o ur n a l
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Global Briefs Fashion House Moscow will launch second phase in November Fashion House Group, the largest outlet developer in the CEE and Russia, started construction in October 2015 on the second phase of its outlet center in Moscow. The €11 million, 4,500-m2 expansion to Fashion House Moscow will open on November 4 with 30 new brands, all in time for this year’s holiday season. The center, a 39,000-m2 enclosed mall – the first fully enclosed outlet center in Russia – experienced more than 30 percent sales growth in 2015. FH Moscow, which opened in June 2013, has become a popular spot for wedding photos, according to CEO Brendon O’Reilly. “Whole wedding parties just show up,” he said. “They love the big fountain and the interior concept that has a different city theme for each shopping street. They can be photographed in ‘London’ or ‘Milan’ or ‘Paris’ right in Moscow.” Tenants in FH Moscow include Adidas, Reebok, Nike, Puma, Lacoste, Le Creuset, Tommy Hilfiger, Benetton, Samsonite, Tom Tailor and Mango. The Red Carpet Alley, dedicated to the high-end fashion stores, includes Blumarine, Baldessarini, Dirk Bikkembergs, Bea YukMui, P.A.R.O.S.H., Doucal’s, Moreschi, Zanotti, Luca di Marco and Versace. FHG, which is part of Liebrecht & wooD Group, a European real estate development company established in 1991, is also working on Fashion House Outlet Centre St. Petersburg. The center’s site is 20 km south of St. Petersburg’s city center. The infrastructure, including road access, power and water system connections, traffic lights and bus stops, has been completed. The €70 million, 20,260-m2 project is scheduled to open in spring 2017 with 120 store units. FHG has delivered and currently manages five Fashion House Outlet Centres: three in Poland (in Gdansk, Sosnowiec and Warsaw), one in Bucharest, Romania, and the center one in Moscow for a total GLA of more than 86,000 m2. Fashion House Bucharest, which opened in 2008, added three new tenants in late 2015 – Sport Vision, R&R Boutique and Issimo Home – and an expanded Tom Tailor store. Sport Vision, 375 m2, is an international multi-brand store operator that hosts more than 40 footwear, ap-
Millerchip promoted to new position at Realm UK outlet center operations and management agency Realm has appointed Giles Millerchip head of legal, a newly created position. Millerchip will be based in the North West Office of Realm, sited in Alderley Edge. He Millerchip was formerly head of legal at McArthurGlen, which he 22
As the Russian ruble tumbles, shoppers head to Fashion House Moscow, leading the developer to begin construction on the project’s phase 2, which opens November 4.
parel and equipment labels, including Nike, Adidas, Umbro, Reebok, Champion, Converse, Ellese, Puma, Sergio Tacchini, Carrera, Karrimor and Slazenger Issimo Home, 78 m2, a manufacturer of premium home and bath textiles, operates 200 stores in Turkey and has retail partnerships in 15 countries. R&R Boutique, 144 m2, a shoe manufacturer, will operate a multi-brand concept featuring its own creations, as well as international footwear brands. Tom Tailor decided to expand its current store in Fashion House Outlet Centre with an additional 173 m2, which raised the total area of the store to 320 m2. In the past 12 months, 10 other new tenants joined the 20,451-m2 Bucharest outlet center: Guess, Mustang Jeans, Spanish Kids, Kiddie Rides, Format Lady, Faith by MD, Nissa, Napoleoni, TED’s, Lacoste & Gant. The center is next to Bucharest’s ring road with direct access from the A1 highway, 30 minutes from the city center. The center has 2,150 parking places and 60 tenants, including Puma, Adidas, US Polo, Champion, Stefanel, Mango, Ecco, Camel Active, Lee Cooper, Nissa, Lacoste and Gant.
joined in 2000 after prior experience with several law firms in Chester and London. Colin Brooks, managing director of Realm, said, „We are delighted to have recruited Giles; he brings a wealth of specialist legal and leasing experience to the Realm business.”
Rioja wins approvals for Mill Green project The joint venture of Rioja Developments and U+I won district council planning committee approval on Dec. 5, 2015 for their €145 million
I n te rnational Ou tle t Journ al Winter 2016
Mill Green Designer Village project in Cannock Chase, Staffordshire, England. Phase 1, with a planned opening in 2018, would have 80 stores, with another 48 stores and a multi-story parking garage to be added in phase 2. The ultimate buildout would encompass 255,730 sf. The site is just off the major M6 Toll Road at Eastern Way (Route A460), about 15 miles northwest of central Birmingham, and adjoins the Mill Green Nature Park. The nearest competitor is Genting Resorts World’s 50-store Outlets at Resorts World Birmingham, about 30 miles away, which opened Oct. 15. c
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