Simon said
to Kaempfer,
Let’s make a deal...
J. W. Kaempfer, McArthurGlen founder; David Simon, SPG
chairman; Julia Calabrese, McArthurGlen CEO
Plus:
Two centers open in Moscow
Busan Premium Outlets opens
2013 Outlet Conference recaps
Updates around Europe and Asia
Roppenheim The Style Outlets
We look after the brands as if they
were our own
All the brands have their own interest but just one joins them all: selling.
That’s why 900 of the world’s best brands put their trust in NEINVER. Because we are
the second largest outlet operator in Europe, managing more than 311,000 sq.m. GLA
and more than 1,500 stores. Because we manage 15 outlet centers operating
under the brands The Style Outlets and FACTORY in Spain, Italy, Poland, Portugal,
Germany and France.
We recognize that the success of a brand is also ours. This is what has made us leaders.
neinver.com
CONTENTS
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Vol. 9 No. 4
Fall 2013
PAGE 20
PAGE 10
STaFF
ICSC/IOJ
2519 N. McMullen Booth Rd.
Suite 510-356
Clearwater, FL 33761
+1 727 781 7557
Linda Humphers
Editor in Chief / Director ext. 3
[email protected]
Randy Gdovin
Art Director ext. 4
[email protected]
Karen Knobeloch
Advertising Prod. Mgr. ext. 2
[email protected]
Sally Stephenson
Senior Advertising Executive
+1 847 835 1617
Fax: +1 847 835 5196
[email protected]
ICSC EUROPE
London, +44 20 7976 3100
[email protected]
I
David larue
ICSC Chairman
Michael P. Kercheval
Inside
4 Outlet Connections Recap
10 Simon said to Kaempfer, “Let’s make a deal…”
16 Planned: openings for London Designer Outlet and One
Fashion Outlet; expansions at Designer Outlets Wolfsburg
and Kildare Village
Designer Outlet Livingston
court; Gloucester Quays expands and adds new tenants;
Designer Outlet Soltau celebrates 1st anniversary; Realm
strengthens leasing team for new projects; new appointments
as FSP Retail continues to grow; European Outlet Conference
sets new date and venue; Lagerfeld, Abercrombie launch their
1st European outlet stores; Art of Denim campaign promotes
outlet shopping.
18 Fashion House Outlet Centre Moscow opens
20 Vnukovo Outlet Village opens near Moscow
22 Ownership changes: Marques Avenue Romans and
24 Global News: Neinver adds “style” to Vila do Conde food
30 Channel Check: Luxury shopping at Bicester Village
32 Busan Premium Outlets opens
34 Outlet development heats up in Malaysia
ICSC President and CEO
Advertiser Index
Rudolph E. MIlian, scsm, scmd
Designer Outlets Wolfsburg.................. 23
Empire Outlets . .................................... 17
Fashion House...................................... BC
Fashion Outlets of Chicago.................... 13
FSP Retail.............................................. 25
ICSC Senior VP
International Outlet Journal is a publication for the
non-U.S. factory outlet industry. Copyright © 2013
ICSC European Outlet Conference......... 29
ICSC Outlets Asia................................. IBC
McArthurGlen...................................5, 7, 9
Neinver.................................................IFC
One Fashion Outlet................................ 27
Value Retail........................................... 15
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
3
COnference Recap
Europe’s continuing
outlet promise
Attendees of ICSC/IOJ’s
conference in Hamburg
got the latest updates on
growth and productivity
in Europe’s outlet scene.
Outlet-center openings in Poland,
Russia and Germany accounted for 65
percent of new GLA in Europe during
2012, making that year one of the best
for development since 2008.
That was just some of the information that 185 delegates heard at ICSC/
IOJ’s Outlet Connections Plus held
in Hamburg, Germany. Conference
chair Giles Membrey, managing director of Rioja Developments, got the
confab rolling with keynote presenter
Ken Gunn, director of UK-based FSP
Retail. Well-known for his comprehensive research on the outlet sector, Gunn
provided the details on the industry’s
size, scope and value, which he places
at 205 outlet centers totaling 3.3 million
m2 of GLA. Outlet sales in Europe
have reached nearly €11 billion, he said,
and then he added the news everyone
wanted to hear: “Based on Europe’s
population, there is room for a further
50 to 70 outlet centers.”
Gunn said 21 planned outlet projects totaling 370,000 m2 have set
opening dates for 2013 or 2014 with
almost 60 percent of the planned
Giles Membrey
4
I n t e rnational Ou tlet Journal Fal l 2013
Attendees at ICSC/IOJ’s Outlet Connections Plus in Hamburg found time to network.
projects in France, Germany and Russia. Despite the robust pipeline, Gunn
cautioned, the real issue for developers and brands is to manage their
outlet growth in Europe.
On the subject of outlet-chain
ownership, the audience learned that 95
percent of outlet stores are owner-operated, a model likely to continue because
of retail sensitivity and the need for
brands to control their own destiny.
Giovanni Mazzoleni, head of
Zweibrucken-based G.M.O. GmbH,
signs lease agreements and hires staff
for retail chains. “We are not a client of
Ken Gunn
the brands; we are a partner,” Mazzoleni
said. “There are responsibilities and risks
on both sides. The brands are delivering
their reputations and merchandise.”
This arrangement is advantageous
for brands as it offers a cost-effective
way to try outlet retailing for the
first time or open in a new country.
From the outlet developer’s perspective, he said, franchisees are a good
source of tenants. “Bringing in new
brands every few months to test the
market before they establish a more
permanent presence adds spice to the
center’s offer,” Mazzoleni said.
(Continued on page 6)
Giovanni Mazzoleni
A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE
M C ARTHURGLENGROUP.COM
E NCHANTING
M C ARTH URGLEN
ONE OF TWO LUXURY PIAZZAS AT M C ARTHURGLEN DESIGNER OUTLET NOVENTA DI PIAVE NEAR VENICE
COnference Recap
Sven Kromer
(Continued from page 4)
Sven Kromer, partner of Dusseldorfbased Kurt Salmon, said franchising can
be a good option with close supervision,
especially in a country where the brand
doesn’t have a retail presence.
Outlet stores are an important distribution channel, Kromer said, despite the
continuing growth of online retailing.
“Integrating your off-line and on-line
channels is key,” he said.
Liquidating excess product is still a
big part of European brands’ business,
Kromer said. Outlet apparel sales are 36
percent of the total liquidation market
in Germany and 12 percent in the UK,
accounting for €2.3 billion in sales in Germany and €0.6 billion in sales in the UK.
Price mark-downs in full-price stores
remain a big chunk of the liquidation equation in Europe: 39 percent in Germany and
55 percent in the UK. Online liquidation
accounts for 8 percent of liquidation sales
in Germany and 10 percent in the UK.
The liquidation market is growing 6
percent to 7 percent overall, Kromer
said, except in full-price venues where
it’s shrinking. “We need to increase the
freshness of assortment through ‘made
Peter Berg
for outlet’ product,” he said, referring
to a model now widely used by almost
every outlet chain in the U.S.
One chain that’s growing is Ensign
Blue, the outlet concept of Jeans Center,
the leading multi-brand denim chain in
the Netherlands. With 13 outlet stores in
five countries, the chain is on the hunt
for new outlet opportunities, according
to Peter Berg, CEO of Ensign Blue
and Jeans Center.
The company has also spent €1 million
establishing an ecommerce site that sells
both full-price and outlet goods. But the
company’s commitment to brick-andmortar stores remains undimmed.
“We want to open in Roermond, Ghent,
Berlin, Honfleur, Provence and Parndorf,”
Berg said. “We know we have to prove our
worth to the operators, but we will do it.”
France is into its third generation of
outlet development, according to Dr.
Caroline Lamy of Troyes-based Magdus. She highlighted the architectural
revolution that has taken place since
1984 when France’s first outlet center,
L’Usine Roubaix, opened in a former
The conference was packed with two days of information-filled sessions.
6
I n t e rnational Ou tlet Journal Fal l 2013
Dr. Caroline Lamy
industrial site, to today when Neinver
and McArthurGlen are constructing
designer outlet villages.
She predicts a fourth generation of
luxury brands in upscale settings. Over the
last few years, developers McArthurGlen,
Unibail Rodamco and Concepts et Distribution, have been joined by newcomers Advantail, Neinver and Hammerson.
Investors include Resolution Property,
Catinvest and MAB Development.
IOJ follows 16 existing outlet centers
totaling 295,000 m2 in France. Although
26 outlet projects are in the French pipeline, Lamy says, “It can take seven to 10
years to open an outlet center in France.”
Brands seeking to enter the German
outlet market are limited with just nine
centers totaling 188,000 m2. Despite
plans for 30 more outlet centers, significant legal restrictions have to be overcome, according to Dr. Jan Hennig,
a partner at Gleiss Lutz, which advises
outlet developers on Germany.
“Germany consists of six federal
states, each with different regional, local and zoning laws in place,” he said.
“Small-scale developments are easier
to progress in older heritage sites or on
greenfield land. I am not that pessimistic
about new outlet development in Germany, but it does take time.”
Even as Germany’s outlet industry
tries to catch up with other Western
European countries, Advantail’s David
Derozier points out that outlets have
become destinations. “We hope we are
building the fourth generation. It’s not
only brands and price but also leisure
and experience. This is now a key factor
for a brand choosing where to open.”
In some quarters there is a view that
outlet centers are one way of reviving
some of Germany’s dying inner cities, but Michael Koenig, expansion
manager of Wellensteyn Clothing Co.,
(Continued on page 8)
A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE
M C ARTHURGLENGROUP.COM
C APTIVATIN G
M C ARTH URGLEN
500,000 ATTENDED OUR SUMMER MUSIC FESTIVAL AT M C ARTHURGLEN DESIGNER OUTLETS ACROSS ITALY
COnference Recap
Dr. Jan Hennig
(Continued from page 6)
doesn’t like the idea of being in competition with cities. He has outlet stores
in Roermond, Roppenheim, Bicester,
Salzburg and Wertheim and he has plans
for three more outlet units this year. “I
don’t think outlet centers should open in
cities. Ideally they should be outside.”
Allard Bruinshoofd, head of international research for Netherlands-based Rabobank, said the outlet industry is leading
Europe out of its painful economic woes,
at least in terms of consumer spending.
He does wonder, though, when German
consumers will start spending.
All the signs are green for German
spending: low unemployment and low inflation. Retail is expected to grow quickly,
but Germans just aren’t going shopping.
“They are spending a little more on
culture and leisure but that’s it,” Bruinshoofd said. “If we review consumption
levels across European countries since
the turn of the century we see consumption grow in all European countries, but
not in Germany. It’s flat.”
However, confidence in the economy
Michael Koenig
has jumped more sharply in Germany than
in any other European country, probably
because austerity is no longer needed.
French confidence is picking up but in the
Netherlands it remains stagnant. Improved
spending should start happening soon
since all the initiatives that bolster growth
are in place. “The recent shift in the European Union from overzealous budget reduction to giving growth a fighting chance
is to be welcomed,” he said.
Looking to 2014, Bruinshoofd predicts
international trade activity, not local
spending, will be the engine of growth.
In a panel discussion on emerging
markets, moderator Stephan Schafer,
managing director at Outlet Centres
International, asked the big question:
“What’s next?”
For developer Value Retail, the future
is in China, said John Quinn, director
of Value Retail Germany. “That’s where
our customers are. Value Retail has
always been focused on small villages
across Europe, close to capital cities, if
possible. But we believe the market in
Europe is saturated for the customers
we target. The company has considered
Left to right, Rear Admiral Chris Parry, Thomas Immelmann and John Quinn discuss
the future of outlet development in Germany.
8
I n t e rnational Ou tlet Journal Fal l 2013
Allard Bruinshoofd
Central Eastern Europe, Russia and
Turkey but the time isn’t right for these
countries.”
Value Retail is currently developing
a 22,000-m2 center in Suzhou, China,
which is 23 minutes by fast train from
Shanghai. Three additional Chinese
projects are in planning and one will be
announced shortly.
“The Chinese market is not a simple
one,” Quinn said. “We were concerned
about finding leasing and sales teams,
and we have some great people but they
do expect Western salaries. According
to some reports, 80 million tourists go
to Suzhou every year; it’s a strong and
growing economy.”
Thomas Immelmann, manager of
German projects for McArthurGlen,
agrees that the market is mostly saturated
in Europe, with a few exceptions. “Central Europe is not that mature and that
was one of the reasons we opened our
outlet center in Neumunster,” he said.
MCG is also planning expansions to
several existing centers and has successfully gained approvals for a new project
in Western Germany, at Remscheid
in the Federal State of North RhineWestphalia. Outside of Europe, MCG
will open a new project in Vancouver,
Canada, the developer’s first center
outside Europe.
Industry analyst Rear Admiral Chris
Parry advised not looking at countries
but provinces. “Only four out of 28
Indian provinces are showing growth
rates,” he said. “It’s the same in China.
You must research hard the province
you are considering.”
Parry said to look beyond the BRIC
brigade (Brazil, Russia, India and
China) for the fast newcomers: Vietnam, Mongolia, Philippines, Mexico,
Chile and Panama, where the race is
really on. Identifying the ripe parts of
Africa, Malaysia and Indonesia should
also be on the industry’s long-term
radar, he said. c
A SIMON PROPERTY GROUP / KAEMPFER PARTNERS JOINT VENTURE
M C ARTHURGLENGROUP.COM
VANCOUVER 2 015
M C ARTH URGLEN
M C ARTHURGLEN DESIGNER OUTLET VANCOUVER WILL BE A NEW LUXURY CONCEPT FOR NORTH AMERICA
cover Story
Q & A: Simon
and Kaempfer
The two outlet giants struck a deal
in June for a joint venture – not
an acquisition – that just might
be one of the most interesting
marriages in outlet development.
SPG will acquire an immediate ownership interest in six
of the 20 properties McArthurGlen has developed and
has become a 50 percent partner in McArthurGlen’s
property management and development companies. SPG’s
ownership interest involves an initial equity investment of
approximately 435 million euros, and will include assets in
Austria, Italy, the Netherlands, one center in the United
Kingdom and Vancouver, Canada.
When the world’s largest outlet-center devel-
IOJ: What does the agreement mean for Simon
Property Group?
SIMON: McArthurGlen has a strong team of professionals and one of the best-performing portfolios of
high-quality retail real estate in Europe. This venture
supports and extends our international growth strategy,
and we look forward to collaborating on ways to further
enhance McArthurGlen’s platform for retailers and
customers.
I was confident we could be natural partners because I
knew that Joey wanted more permanence for McArthurGlen as he looked out 10 to15 years. We can help create
that permanence and stability by virtue of our 50-plus
years of experience and being one of the leaders, if not
the leader, in the global retail business. He has the real estate and a strong team and we have the ability to facilitate
growth and add value operationally.
oper formed a partnership with Europe’s largest
outlet-center developer, IOJ wanted to hear more
about this historic deal and what it all means. J.W.
Kaempfer, chairman of McArthurGlen Group, which
he founded in 1993, and David E. Simon, chairman
and CEO of Simon Property Group, founded by his
father and uncles in 1960, sat down with IOJ in
SPG’s offices in New York City. Here’s what the two
leaders had to say:
IOJ: Let’s start with the nuts and bolts of your
agreement.
KAEMPFER: We have formed a joint venture through
which Simon Property Group will invest in McArthurGlen.
Joey Kaempfer, David Simon and Julia Calabrese spent months forging the deal that would lead to Simon Property Group’s
investment in McArthurGlen.
10
I n ternational Ou tlet Journ al Fal l 2013
Who, What, Where:
Simon Property Group is the
developer of 66 Premium Outlet
centers in the U.S., nine in Japan,
three in South Korea, and one
each in Canada, Malaysia and
Mexico, for a total of 81.
McArthurGlen is the developer
of six Designer Outlets in the UK,
five in Italy, two each in Austria,
France and Germany, and one
each in Belgium, Greece and the
Netherlands, for a total of 20.
SPG paid MCG €435 million
for an interest in six centers: five
existing centers in Naples and
Venice, Italy; Ashford, England;
Parndorf, Austria; Roermond, the
Netherlands and one in development in Vancouver, Canada.
IOJ: What did you find appealing about partnering with Simon
Property Group?
KAEMPFER: For starters, it’s the
largest operator of malls and premium
outlet centers in the U.S. and Asia, so
David and his team bring unparalleled
resources, expertise and relationships.
We were also drawn to SPG as a
financial partner. Although we’ve always
had good financial partners – each of
our properties is worth 125 to 250 million euros – we’ve always been cashshort as a business. We never failed to
McArthurGlen’s Ashford Designer Outlet in Kent, England, was designed by Richard
do a project as a result of being cashRogers, the architect behind the London Dome and the Pompidou Centre.
short, but it requires a lot more work to
complete a deal. Sometimes it’s almost as much work to get
for the joint venture to buy two-thirds ownership of our outlet
financing as it is to go through the always-difficult process of
centers in Naples and Venice, and then over the next three to
getting site approvals in Europe.
five years buy the remaining third. Also this fall, our venture
When David approached me, we had a partnership with a
will acquire a controlling share of our Roermond outlet center
New York-based property investment fund that was coming to
near Dusseldorf and our Parndorf outlet center near Vienna.
an end. One of the things we wanted was a partner that was not
We will then jointly own about half of these two projects.
only financially strong, but who knew the business we were in
and could bring more than money. David and his company know IOJ: What do you see the partnership doing in the
a huge amount about the business, so that was a huge plus. And
longer term?
the biggest part is that they specifically don’t want to sell the asKAEMPFER: At McArthurGlen, we have two or three
sets when they’re completed. They have a belief in the long-term
approved
projects in our pipeline, which will build out in the
value of owning property. It’s a pretty comfortable fit.
next five to seven years. Together they are valued at 600 to
800 million euros. We have another three that are on their
IOJ: Which projects are initially part of the joint
way to full approvals. Between us and Simon, we will have
venture?
the vast majority of the ownership of those projects.
KAEMPFER: SPG is buying a position in our Ashford
And that speaks to one of the benefits of the partnership –
outlet center in the UK, which we are planning to double in
our desire to aggressively expand is matched by Simon
size. Together, we will now own 25 percent. This fall, we plan
(Continued on page 12)
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
11
cover Story
(Continued from page 11)
Property Group. They understand that
you have to put in time, effort and
money to get approvals in Europe.
Almost all of our investment partners
heretofore have been very nervous about
the real estate aspects and the risks of the
approval process. That’s one of the great
advantages of this marriage.
IOJ: How do you see the partnership evolving?
SIMON: Joey has had a lot of different partners. Our vision is that over
time we’ll simplify the business and buy
out certain partners and end up owning the highest quality McArthurGlen
assets, starting with the first six Joey has
just mentioned. And over time, as some
partners exit, we’ll jointly buy them out
as well, so we hope this will be a bigger,
simpler company over a period of time.
IOJ: What is the joint venture
going to mean for SPG’s relationship with retailers?
SIMON: When we first went into
European real estate, in the late ‘90s, the
theory was that there would be crossfertilization, that a number of retailers
from Europe would come to the U.S.
and vice versa. That didn’t really happen
back then, but it’s happening now.
We think this partnership brings a great
opportunity to solidify our relationship
with retailers and offer them great real
estate, whether it’s in Europe or the U.S.
How we go about doing that will take
time and thoughtfulness, but Joey and his
team have very deep relationships with
great European retailers who are going to
want to come to the U.S.
IOJ: What are you forecasting for
the outlet project in Vancouver?
KAEMPFER: We expect it will attract a lot of tourists, particularly from
Asia. It’s two minutes from a casino, five
minutes from the airport terminal, on
a direct shuttle, and 25 minutes by the
same train from downtown.
SIMON: We’re confident about Vancouver based on our own experience in
Canada. We just opened an outlet center
on the west side of Toronto, which has
been one of the best openings we’ve ever
had. We are also under construction in
12
I n ternational Ou tlet Journ al Fal l 2013
Designer Outlet La Reggia (top), near Naples, and Designer Outlet Noventa di Piave
(above), near Venice, are the two Italian centers in the initial Simon and Kaempfer JV.
Montreal for a third quarter 2014 opening.
With those two centers, the introduction
of the American/European style of outlet
center has been done. Canadian and U.S.
retailers have seen it and they love it.
IOJ: What are your visions for the
outlet industry? Do you see any
big changes on the horizon?
SIMON: Our vision for the outlet
industry calls for building and developing in highly thoughtful locations. The
old history of outlets was marginal
real estate between two cities. It’s really
evolved from that to better-located real
estate with top-notch brands. Outlet
centers also have to deliver real value
that consumers can’t get from traditional
shopping centers. The real estate is also
going to have to be bigger and it’s going
to have to have better architecture. We
love the look and feel of Joey’s centers
in Europe, so one of the things we’re focused on is taking that look and feel and
ensuring that our outlet centers not only
have great brands, but also the beautiful
architectural feel that Joey and his team
have done a great job of creating.
Another key component will be restaurants and some elements of entertainment, so an outlet center is more
than just a center between one city and
(Continued on page 14)
GLOBALLY
SIGNIFICANT
cover Story
(Continued from page 12)
another. When you create that setting,
consumers love it and will go out of
their way to shop it, and the retailers
love it and it’s very profitable for them.
KAEMPFER: I would underscore that
entertainment is a bigger and bigger part
of outlet development. We’re doing more
to try to make the outlet center a place
where people stay for three to five hours.
We have a competitor in the Internet.
While it can match price, it can’t let you
shop with your friends or make balloons
for your kids or serve you a great meal.
But we entertain and feed consumers and
do all of these things at once. Incredible
things can happen if we realize we are in
the entertainment business as well as the
retail business and the food business.
IOJ: Are outlet projects destined
to locate closer to city centers?
KAEMPFER: The concept of needing to be an hour outside of town is
over in the U.S. It’s not over in Europe,
but the trend is moving in that direction. We’re developing a center in the
Belgian city of Ghent, which has a
population of nearly 250,000 – and it’s
only 40 minutes from Brussels.
IOJ: Can you talk about the economies in the U.S. and Europe
and how you see that influencing your plans?
SIMON: We’re seeing Europe stabilize
a little bit – you have to look at it country by country and asset by asset. What’s
really fascinating about real estate is that
even amid an economic downturn a mall
can see cash flow increase if it has the
right location and the right demographics.
In the U.S., our cash flow was relatively
stable even when it seemed like the world
was ending a few years ago. In Europe,
you can look at the macro headlines, but
you really have to peel the onion and ask,
“Where is the real estate? Who are the retailers? What’s the competitive outlook?”
IOJ: Are there any issues specific to the U.S. or Europe that
are of particular concern?
SIMON: We find that retail real
estate development is under-appreciated
given that we generate lots of jobs, and
our retailers generate lots of sales tax
14
I n ternational Ou tlet Journ al Fal l 2013
Designer Outlet Roermond
(above), in the Netherlands,
and Designer Outlet Parndorf
(right), in Austria, are two of
the six centers in the Simon and
Kaempfer JV.
and help create community.
But politicians are generally
supportive. The biggest thing
we have been focused on in
the U.S. is the taxation of
Internet sales, as we see value
in leveling the playing field
between local shopkeepers
and someone selling on the
Internet.
IOJ: Can you talk about
the approval process
for outlet centers in the
U.S. versus Europe?
KAEMPFER: The U.S. has
a much easier approval process. It’s mind-numbing what
we go through in Europe. We
got approval in the south of
France, in Provence, but it
took two-and-a-half years, and
then we were still a year-anda-half from being able to put a shovel
in the ground. But that’s part of what
makes Europe profitable – the high barriers to entry.
IOJ: Any final thoughts?
SIMON: When we’ve taken on
real estate partners, we’ve always been
focused on taking the best practices of
both companies to make the product
better. That’s the overriding theme
here. As long as both have an open
mind about the best way to make the
product better, then it should be a
very good transaction for everybody
involved, and for the retailers as well.
I’m confident that commitment to
product quality and improvement will
be imbued in our partnership with
McArthurGlen. The partnership gives
us at SPG a renewed focus on making
our product better, whether it’s a mall
or an outlet center, and Joey and his
team have that in their blood. c
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SUZHOU VILLAGE
™
SUZHOU · SHANGHAI
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09/13
Planned
London D.O. will enjoy 2014 holiday sales
At IOJ press time, Quintain Development’s London
Designer Outlet was set to open on October 24, just
before the end-of-year holidays. The 350,000-sf project,
which mixes outlets with restaurants and cafes, is next to
Wembley Stadium and just 10 miles from the center of
London. Quintain, which engaged Realm earlier this year
to handle leasing, is hoping the stadium’s 4 million annual
visitors will bring their families and stay a while at LDO.
The center is about 70 percent leased with outlet and
restaurant tenants.
The outlet chains that have signed leases include
Adidas, Bags Etc., Bhavi Beauty, Clarks Outlet, Denby
1809, Gap Outlet, Guess, L. K. Bennett, M & S Outlet, Nike Factory Store, Skechers, Superdry, Tog 24,
Villeroy & Boch and Viners.
The restaurants going into LDO include Cabana,
Construction as of mid September was nearly complete at London
Cineworld, Coast to Coast, Costa Coffee, Frankie &
Designer Outlet.
Benny’s, Handmade Burger Co., Jimmy’s World Grill &
space for 36 new retail units, a tourist information center, two
Bar, Las Iguanas, Nando’s, Pizza Express, Pret Natural Foods,
restaurants, office space, more than 400 new parking spaces and
Prezzo, Starbucks, TGI Friday’s, Wagamama and Zizzi.
a pedestrian link to the adjacent Tesco. The 11,625-m2 center,
See full coverage of London Designer Outlet’s opening in the
which opened in 2007, is 50 miles southwest of Dublin, on the
Winter 2014 IOJ.
Cork Road (Motorway N7). Construction on the expansion is
expected to start in the coming months.
Because of the number of jobs the center creates – 550 currently with another 380 jobs generating €55 million in wages
through the expansion – the Irish press was highly positive
An Bord Pleanala, which is an independent, statutory,
about Value Retail’s €50 million plans for Kildare Village.
quasi-judicial body that decides on appeals from planning
Tenants in the designer outlet center include 7 For All
decisions made by local authorities in Ireland, has granted
Mankind, All Saints, Brooks Brothers, Coach, French Cona 10-year planning permission for the expansion of Value
nection, Furla, Hugo Boss, Juicy Couture, Karen Millen,
Retail’s Kildare Village.
Pandora, Thomas Pink, Tod’s/Hogan, Tommy Hilfiger, True
The 7,053-m2 expansion will be multilevel and will provide
Religion and Wolford.
Kildare Village GLA
to expand by 60 percent
Slovakia’s first
outlet center ready
for October opening
The 65,000-sf phase 2 of Designer Outlets Wolfsburg will open in
December. The six-year-old center is managed, marketed and leased by
Outlet Centres International, its original developer. It was acquired in 2011 by
Europa Capital, a Rockefeller Group subsidiary. DOW is across the street from
Wolfsburg’s famous Volkswagen headquarters and museum, one reason
that the center has enjoyed liberal Sunday hours and was able to expand
in record time.
16
I n ternational Ou tlet Journ al Fal l 2013
The first outlet center in Slovakia was due
to hold its grand opening on October 30. The
€75 million outlet project, on the D1 Highway in
Voderady, outside of Bratislava, is being developed
by Realiz with Rohleder Lumby and SJ International handling leasing.
The center’s catchment includes the 4.8 million
people within a 90-minute drive who live in Slovakia, the Czech Republic, Austria and Hungary.
Tenants in the 15,000-m2 center, which was
more than 60 percent leased in September,
include Ecco, Lee Cooper, Nike, Adidas, Tom
Tailor, Gant, Carpisa, Levi’s, Mustang Jeans,
Trussardi, Aftershock London, Puma, Envy,
Berndorf Sandrik, LuxuryMall, Marina Militare
and Salomon.
The center, which has parking for 2,500 cars and is
next to a resort lake, will be open seven days a week.
See full coverage of One Fashion Outlet’s opening in the Winter 2014 IOJ. c
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Moscow
Fashion House brings
outlets to Moscow
For an adventure in outlet
development, there’s no
place like Russia – just ask
Fashion House Group.
B y LINDA HU M P HE R S
E d i to r i n C h i e f /D i re c to r
Officiating at the grand opening ceremony in June for Fashion House Outlet Center Moscow are, from left, Yury Pankratov, head of Solnechnogorsky District; Guy
Trouveroy, ambassador of Belgium to Russia; Alexander Frolov, chief architect of
Moscow; and Patrick Van Den Bossche, managing director of Fashion House Group.
Fashion House Outlet Centre Moscow is the only enclosed outlet project in Russia.
18
I n ternational Ou tlet Journ al Fal l 2013
Fashion House Group, which has
been developing outlet centers in Central
and Eastern Europe since 2004, opened its
first center in Russia on June 27. According to managing director Brendon O’Reilly,
developing the 28,640-m2 outlet center just
12 km from Moscow has been a wild ride.
“I love it. It’s completely my environment. There’s just never a dull moment,”
O’Reilly said. “The level and quality of
tenants is really paying off. The sales, the
numbers, the conversions and spend are
off the charts. We’re just overrun with
brand-conscious consumers who
have a lot of expendable income.”
Not that opening the center was
anybody’s idea of easy.
“We kept running into all sorts
of delays,” O’Reilly said, “and every
time we delayed the opening, we’d
fall off the retailers’ schedules. All
the brands are opening so many
stores – they can’t wait. They just
move on to the next location.”
That pent-up brand demand
comes from Russia being underretailed, with only 0.1 m2 of retail
space per person (compared to
2.2 m2 in the U.S.) and vacancy
rates below 3 percent, according to
ICSC.
O’Reilly has personally witnessed
the retail boom there for the last
three years, so he wasn’t actually
worried about filling Fashion House
Outlet Centre Moscow with a good
slate of tenants. The center was
nearly 90 percent leased on opening
day – but only half of those impatient
tenants were open for business.
“We doubled the number of store
openings in the first six weeks of operation,” he said, “and the center is now
running very smoothly – except for the
daily power failures.”
O’Reilly is doing well now, too, despite
a power failure during a wild ride of his
own in July. While racing around the
center on his Segway scooter – wearing
his trademark kilt, of course – O’Reilly
found himself flying through the air,
taking that hard hit on the pavement and
ending up with a broken femur.
“I seriously thought that I’d have to
waste about four hours getting my leg
taken care of and that would be the
end of it,” he said. Instead, he spent
two weeks in a Moscow hospital that
provided him with top-notch, roundthe-clock treatment from two nurses
and a doctor. “They didn’t speak a word
of English and I don’t speak Russian,” he
said, laughing. “That led to some interesting confusion.”
But there’s no confusion about the
architectural success of Fashion House
Moscow. The center’s exterior reflects
traditional Moscow architecture, and the
interior has a windows-to-Europe concept
Fashion House Moscow tenants
7 Camicie
Adidas
Albione
Baldinini
Benetton
Bosco
Bronnitskiy Jewellery
Cacharel
Calzedonia
Caractere
Carlo Pazolini
Crazy Chicken
Cropp Town
Elena Miro
Elpida
Enzo Brera
Econika
Fabi
Geox
Giovane Gentile
Henderson
House
Incanto
Intimissimi
Kanzler
Lacoste
Lavazza
Le Creuset
Mascotte
Michelle Design
Mohito
Monsoon Outlet
Motivi
Mr.Sumkin
Muz
Nike
None
Ochnik
Puma
Quiksilver
Ralf Ringer
Reebok
based on street views from various European cities, including such fashion capitals
as London, Paris and Milan.
The only enclosed outlet center in
Russia, Fashion House Moscow is on
the Leningradskoye Highway (M10)
to St. Petersburg, near Sheremetyevo
Airport. In addition to its 60-plus outlet
units, the center also has restaurants,
Reserved
Respect
Rubino Fiorella
Salomon/Wilson
Samsonite
Sbarro
Shele
Shokoladnitsa
Solo Style
Tatuum
Tervolina
Tezenis
Tom Tailor
Tommy Hilfiger
Tru Trussardi
US Polo
Waggon Paris
Yam Kee
Yashma
cafes, a children’s play area and an
1,800-space parking lot.
The developer is now turning its full
attention to Fashion House Outlet Centre St. Petersburg, scheduled to open in
2014 in 20,260 m2.
“Most of the tenants we have in Moscow are going into our St. Petersburg
center,” O’Reilly said. c
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
19
Moscow
Vnukovo Outlet Village
targets Russian families
Light and bright, this
unique Russian outlet
center plans to attract
families with a variety
of retail, entertainment
and food offers.
B y LINDA HU M P HE R S
E d i to r i n C h i e f /D i re c to r
Vnukovo Outlet Village, a big,
Because of its many components, Vnukovo Outlet Village is quite a bit larger at 47,000
m2 than most European outlet centers, which average 20,000 m2.
Vnukovo Outlet Village tenants
Estel Adoni
Adidas
Gaastra
Baldinini
Geox
BCBG
Henderson
Bebe
Levi’s
Bilancioni
Marc Cain
Bosco Sport
McGregor
Camper
Michael Kors
Carlo Pazolini
Nike
Ecco
Pandora
Escada Outlet
20
I n ternational Ou tlet Journ al Fal l 2013
Salomon
Samsonite
Speedo
Tommy Hilfiger
Triumph
U.S. Polo
Villeroy & Boch
Williams & Oliver
cheerful outlet center filled with shops,
restaurants and entertainment venues,
opened in May eight km from Moscow
on the Kievskoye Highway. This project
is unusual, as outlet centers go, probably because it wasn’t developed by a
typical outlet company.
Vnukovo Outlet Village was conceived and developed by two wellknown Russian restaurateurs – Dmitry
Kulkov and Vladimir Rasumov – and
a third partner, Vyacheslav Shikulov,
who is the head of Samsonite CIS.
The three entrepreneurs created a
large center – 47,000 m2 – with an Angry Birds amusement park, biking trails,
picnic areas and a skating rink, as well
as a roster of Russian and international
outlet tenants.
Although outlet shopping is the main
draw, the developers intend for the center to be used extensively for a variety
of activities, including art exhibitions,
flower shows, performances by street
artists, farmers markets and anything
else they can think of.
They also plan for shoppers to stop
by the planned hypermarket or beauty
salon, perhaps before watching a game
in the sports bars or enjoying a nice
lunch or dinner in any of the center’s
one-of-a-kind restaurants. That’s right:
no chain restaurants will tenant Vnukovo Outlet Village.
In an interview with the Russian
trade publication Arendator, Dmitry Kulkov discussed the partners’
thought behind the project, which is
designed as a small European town
where the streets are filled with shops,
cafes and playgrounds.
“Statistics show that every year
about 55 million people worldwide
make purchases in outlet centers,”
he said. “In Italy, for example, Russian consumers are among the biggest
spenders on outlet goods. We have an
interesting format at Vnukovo Outlet
Village that blends retail with leisure
and entertainment. We are very serious
about the food and beverage concepts
for the project, which we know will
work well with the outlet concept of
high quality and good value.”
Kulkov said that goods would be discounted 30 percent to 70 percent, but
that Russian shoppers will be surprised
to find that the discounts aren’t because
the products are distressed.
“Outlet value comes from several
factors,” he said, “including collections
made by manufacturers specifically for
the outlet format, and lower rents in
The Angry Birds Park at Vnukovo Outlet Village is the first amusement park in Russia
to feature the video-games characters.
outlet centers leads to lower pricing.”
Regarding the center’s entertainment components, Kulkov said, “We
focused on families who would like to
spend their spare time at a nice place
out of the city. Our Angry Birds Park
will be the hallmark of the entertainment area. It will have a variety of
interesting attractions, such as a flying
tunnel, a shooting gallery, interac-
tive displays and a children’s-themed
cafe.”
To add the right European atmosphere, the developers have appointed
Sabrina Caserta as chief operating
officer for the center. She has more
than seven years of outlet experience
with McArthurGlen Group and its
Castel Romano Designer Outlet in
Rome. c
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
21
acquisitions
LaSalle Investment acquires Livingston Designer Outlet
LaSalle Investment Management, a member of the
Jones Lang LaSalle Group, said in August that it has acquired Livingston Designer Outlet from joint owners Land Securities, McArthurGlen and the Richardson Property Group for €62 million.
The 298,064-sf Livingston Designer Outlet was developed in
2000 by McArthurGlen in West Lothian, one of the major retail
destinations in Scotland. The scheme, 90 percent leased at the
time of the ownership change, is anchored by Vue Cinema, Gap,
Next and Marks & Spencer with a diverse offer of medium to
high-end national and international brands.
The center attracts more than 2 million people within a 45-minute
drive – Livingston is 18 miles west of Edinburgh en route to Glasgow,
just off the M8 and A71. Also, two railway lines serve the town. c
Livingston Designer Outlet tenants Include:
Antler
Autonomy
Ben Sherman
Bench & Hooch
Calvin Klein
Chapelle
Clarks
Cotton Traders
Daniel Footwear
Denby
Domo
Donnay
Ecco
Famous Footwear
Livingston Designer Outlet
Fat Face
Fred Perry
Gap
Home & Cook
Jacques Vert
Julian Graves
Karen Millen
Kurt Muller
Lacoste
Le Creuset
Levi’s
Marks & Spencer
Next
Nike
Pagazzi
Pavers
Perfume Point
Petroleum
Radley
Reebok
Regatta
Revlon
Sole Trader
Ted Baker
Tog 24
Trespass
Vue Cinema
Whittard
Marques Avenue
Romans finds a
new owner
AEW Europe said in July that it had
acquired Marque Avenue Romans for
an unnamed institutional client for an
undisclosed price. The seller was Retail
Property Fund France Belgium (RPFFB),
managed by CBRE Global Investors. The
128,100-sf center, developed by Concepts
& Distribution in 1999, is in the French
town of Romans-sur-Isère, about 100 km
south of Lyon in the Rhone Valley. c
Marques Avenue Romans
Marques
Avenue Romans tenants Include:
Abeil
Acced
Aigle
Apostrophe
Arc International
Armor Lux Femme/Homme
Aubade
Banana Moon
Bensimon
Blanc Bleu
Chevignon
22
Clayeux
Comptoir des Cotonniers
Crea Concept
De Fursac Paris
Didier Parakian
Du Parfeil au Meme
Eliane & Lena
Epicea
Gabel
Garnier Thiebaut
I n ternational Ou tlet Journ al Fal l 2013
Hector Cheri
Home & Cook
JB Martin Paris
La City
Lacoste
Lancel
Le Bourget Paris
Le Creuset
Le Phare de la Baleine/Enfants
Le temps des Cerises
Lingerie Shop
Mango
Marese
Marlboro Classics
Mexx
Nike
Olly Gan
Olympia
Pallio
Petit Bateau
Petit Boy
Princesse Tam Tam
Puma
Salamander
Sandro
Swoon Stock
Tehen
Triumph International
Yves Delorme
phase
II
opening Winter 2013
ADIDAS | bASler | bruno bAnAnI | bugATTI | CAlvIn KleIn unDerweAr | CInque | DeSIguAl | DIeSel
DoCKerS | Dyrberg/Kern | eSCADA | FoSSIl | gAnT | gArCIA | lACoSTe | lAurÉl | le CreuSeT
levI’S® | lIebeSKInD | lInDT | MAMMuT | MArC o’ Polo | MeXX | nIKe FACTory STore | oAKley | Polo
rAlPh lAuren | PuMA | roSenThAl | SArAr | STreneSSe | ToM TAIlor | ToMMy hIlFIger | vAn lAACK
Join these and many other brands. We are adding 30 new shops this Winter.
catchment covers one of germanys wealthiest
regions including the major cities of berlin, hamburg
and hanover
easily accessible via A2 and A39 motorway
for more than 5 years northern germanys
established outlet location
next to the volkswagen Autostadt
ManageMent: outlet Centres International (uK) ltd.
ContaCt
hans Dobke
Chief executive
Tel.: +44 (0) 14 28 65 32 56
[email protected]
stephan schäfer
Managing Director
Tel.: +49 (0) 53 61 89 3 50-17
[email protected]
designer outlets Wolfsburg
An der vorburg 1,
38440 wolfsburg, germany
DesIgneroutlets.CoM
Global Briefs
Gloucester Quays to expand, add new tenants
When the weather is nice, shoppers flock to Peel Group’s Gloucester Quays.
Fashion handbags and accessories retailer
Ollie & Nic has opened its first UK outlet store at
Gloucester Quays Outlet Centre. Ollie & Nic has taken a
five-year lease on the 539-sf unit opposite Gap and near
Calvin Klein.
Peel Group’s 220,000-sf outlet center, which opened in
2009, is adding a €72 million leisure expansion that will
add 30,000 sf to the center. Ed’s Easy Diner, Zizzi Ristorante, Chimichanga and Loungers have already taken
units. A state-of-the-art 1,600-seat, 10-screen Cineworld
is under construction and The Gym has already opened a
Lagerfeld, Abercrombie launch
their 1st European outlet stores
Karl Lagerfeld, the eponymous brand created by one
of the most iconic fashion designers in the world, opened its
first-ever outlet store on August 29 at McArthurGlen Designer Outlet Salzburg. The designer’s second outlet store opened
on September 12 near his hometown of Hamburg, at McArthurGlen Designer Outlet Neumünster.
Karl Lagerfeld, who opened his first branded store in
March on Boulevard Saint-Germain in Paris, is also the
creative director of Chanel and Fendi. The Karl Lagerfeld
stores feature women’s and men’s apparel and accessories,
including watches, eyewear, footwear, bags and small leather
goods. The collection is designed and styled by Lagerfeld himself. Other designer brands at the Salzburg center
24
I n ternational Ou tlet Journ al Fal l 2013
16,000-sf health and fitness facility.
Gloucester Quays tenants include Marks & Spencer
Outlet, Ghost, Next Clearance, Osprey, White Stuff,
Gap Outlet, White Company, Calvin Klein Jeans, Austin
Reed, Paul Costelloe, Snow+Rock, LK Bennett & Musto,
Puma, Hawes & Curtis, Quba & Co and Asics.
Adrian Wright, leasing director for Peel Outlets, said,
“Our footfall has been steadily increasing and with the
arrival of the Quayside lifestyle and leisure element later
this year, the center will see a rise in footfall to about 4
million by the end of 2014.”
include Valentino, Hugo Boss, Jil Sander, Belstaff, Zegna,
Blumarine and Escada.
American fashion and lifestyle giant Abercrombie & Fitch
will open its first European outlet store at McArthurGlen
Designer Outlet Ashford (England) in March 2014.
Reflecting A&F’s all-American, ivy-league style, the outlet
store will also offer casualwear, denim and beach essentials from its Hollister, Gilly Hicks and Abercrombie Kids
concepts.
The store will sit alongside Ashford’s extensive range of
sought-after fashion and lifestyle brands, including Ralph
Lauren, Tommy Hilfiger, Calvin Klein, Sole Trader, Fred
Perry, Ted Baker, Reiss, Nike, Adidas and Guess.
Abercrombie & Fitch operates about 1,000 stores worldwide, including about a dozen outlet stores in the U.S.
(Global Briefs Continue on page 26)
FSP RETAIL BUSINESS CONSULTANTS
EUROPE’S LEADING
OUTLET CENTRE
CONSULTANTS
Performance Improvement
Store Location Strategy
Leasing Support
Pre-Aquisition
Feasability
For more information contact Ken Gunn
[email protected] +44(0)7773 779919
www.fspretail.com
Global Briefs
(Continued from page 24)
Realm strengthens
leasing team for
new projects
Realm has strengthened its leas-
ing team with two key appointments
and an internal promotion. Joining the
Realm HQ team based at Alderley Edge,
Cheshire, are leasing managers Tim
Westlake-Bryant and Louise Evans. In
addition, Leanne Myers has been promoted to leasing manager.
Westlake-Bryant started his career at
Donaldsons and then went on to hold
senior positions at Whitbread, Safestore, CBRE and Sanderson Weatherall. His client list includes Pizza Hut,
McDonalds and Rank. With Realm
he’ll be responsible for increasing and
enhancing the F&B offer at all Realm
managed centers.
Evans joins Realm from Clarks
Village in Somerset, where she has
been center manager for the last seven
years. Myers, who joined Realm in 2010,
will work predominantly on London
Designer Outlet at Wembley and the
planned Resorts World Designer Outlet
at the NEC Birmingham.
New appointments
as FSP Retail
continues to grow
Heidi Roberts has been
promoted to associate director at FSP
Retail. She will be responsible for Snap
Shop, database development and FSP
infrastructure. She is supported by Dave
Stevens, newly appointed development
manager. Ursula Read becomes analyst
manager, responsible for project management and delivery.
Morgan Reece is promoted to senior
analyst and Melanie Watson to analyst.
Bekki Bedford becomes retail knowledge executive and Tanu Bajaj becomes
business analyst, reflecting changes in
their roles over the last year.
FSP Retail is one of the UK’s
leading business consultants, offering market research and intelligence,
supported by years of expertise. FSP
Retail clients include AVIVA, Legal &
General, Hammerson, M&G Real Es26
I n ternational Ou tlet Journ al Fal l 2013
Celebrating the 1st anniversary of Designer Outlet Soltau are, from left,
Thomas Reichenauer of Retail Outlet Shopping; singer Mary Roos; Sylvie
Mutschler of Mutschler Gruppe; singer Nandini Mitra; stylist Mischa Barton and
actress Eva Habermann.
Designer Outlet Soltau
celebrates 1st anniversary
Check out those
pink
cupcakes! Designer Outlet Soltau
knows how to celebrate its first
anniversary – start with celebrities and the sale of more than
2,000 cupcakes to benefit the
KinderHerz Foundation at the
Medical University of Hanover and
wind up with a late-night shopping extravaganza.
Arriving at Mutschler Group’s
145,000-sf center for the September
6 party were style icon Mischa
tate, AREA, Redevco and Henderson
Global Investors.
Art of Denim
campaign promotes
outlet shopping
The Art of Denim is the subject of McArthurGlen’s first global
campaign to promote a product
category. The €4 million campaign
Barton, known from the U.S. television series “O.C. California,” singers
Nandini Mitra and Mary Roos, openair lounge DJ Cosma Shiva Hagen
and the actors Timothy Peach, Eva
Habermann, Nova Meierhenrich
and Natalie O’Hara.
The center’s tenants include 7 For
All Mankind, ASICS, Baldessarini,
Calvin Klein Collection, Crocs,
Fossil, Gianfranco Ferré, Onitsuka
Tiger, Pampolina, Roxy, Tom Tailor
and Valentino.
was set to run from August 31 through
November 5 across Europe, as well
as in Brazil, China, Russia and South
Korea, countries that are home to an
increasing number of traveling outlet
shoppers.
In 2012, more than 5 million items
of denim were sold at 21 McArthurGlen outlet centers – that’s nearly 600
items an hour. A 12-page Art of Denim
(Continued on page 28
V O D E R A D Y
WO R L D FA S H I O N – A LWAYS LO W P R I C E S
IRST
F
E
H
T
F
O
G
OPE NIN
NTRE
E
C
T
E
L
T
U
O
FAC TO RY
A
I N S LOVAKI
30
OC TO BE R
2 013
VODERADY (ONLY 40 KM FROM BRATISLAVA), SLOVAKIA.
COVERS 15,000 M 2 INCLUDING 70 SHOPS IN THE FIRST PHASE.
WWW.ONEFASHIONOUTLET.SK
Global Briefs
(Continued from page 24)
supplement was included in
the October issues of Elle
magazine’s editions for Italy,
the UK, Germany, Greece and
the Netherlands, as well as
multi-page advertorials in Elle’s
Brazilian, Chinese, Korean and
Russian editions.
Neinver adds
“style” to
Vila do Conde
food court
Neinver, the second-largest
operator of outlet centers in Europe, has redesigned its center
in Portugal, Vila do Conde The
Style Outlets, to house a new
food and leisure area of 2,000
Neinver’s first stylish food court seating area was installed at Vilo do Conde the Style Outlets.
m2 in order to improve customfashion shows. The ceiling of the leisure
ers’ shopping experience.
wall. The interior design responds to the
zone has different heights in order to
The new food-court seating area,
Broadway Malyan project that includes an
designed by Paulo Lobo, has a large video take advantage of the natural light and
area with comfortable sofas and poufs to
wall that will showcase sports, movies and to improve the visual effect of the video
make the space more welcoming. c
European Outlet Conference moves to new date and venue
The European Outlet Conference, established in
2006 by ICSC and VRN/IOJ as the only pan-European outlet meeting, will celebrate its ninth year with a new date
and a link to another successful ICSC meeting.
The new date is March 5, 2014, one day after ICSC’s
Retail Connections, at the Business Design Centre
in the heart of Islington. An Outlet Pavilion at Retail
Connections is under consideration.
The change will be highly advantageous for brands
and landlords.
“This event provides a unique, one-stop opportunity
in the retail calendar for brands to link up with asset
managers and developers,” said Adrian Nelson, group
leasing director for McArthurGlen. “It provides an
opportunity for brands to talk about expanding their
outlet as well as their full-price business, and at a
time when outlet retailing is increasingly seen as a key
distribution channel, alongside full price and digital.”
Giles Membrey, managing director at Rioja
Developments and chair of the European Outlet
Conference programme planning committee, is also
fully behind the move. “As the designer outlet sector
continues to flourish, and as more traditional retailers
28
I n ternational Ou tlet Journ al Fal l 2013
and brands seek a wider customer base, linking with
Retail Connections is the obvious way to explore new
opportunities.”
More than 200 retailers attend Retail Connections, which
has become one of Europe’s most efficient meetings.
“To be able to attend two conferences in two days is a
significant opportunity,” said Michael Morrissey, managing director of ICSC’s European office. “We are also
planning to have an Outlet Pavilion at Retail Connections
for developers.”
Linda Humphers, editor in chief of the International
Outlet Journal, said moving the conference to March
is excellent timing for the growing outlet sector.
“Outlets are thriving here and we’ve had many, many
requests for a meeting in the spring, after everyone has
caught their breath following the holidays. This March
conference is going to be very well-received.”
For exhibit and sponsorship information at the 2014
European Outlet Conference/Retail Connections, contact Sally Stephenson, +1 847 835 1617, sstephenson@
icsc.org. For other queries contact Kirsten Ewald, +44
20 7976 3105, [email protected]. You may also look for
updates on the events page at www.icsc.org.
Channel Check
Luxury Channel Check
Posh on parade
at Bicester Village
IOJ’s luxury analyst
pays a visit to Value
Retail’s top-producing
outlet village.
By MARIE DR ISCOLL
Cont ribu t i n g W ri te r
My mecca is 130 luxury shops
Bicester Village:
facts and figures
Opening: 1995
GLA: 236,800 sf
Sales: Total sales in 2012 rose
17 percent from 2011, well above
Great Britain’s 2 percent increase
for non-food sales in 2012; Value
Retail’s nine-center portfolio has
delivered double-digit sales growth
every year, with comp-store sales
rising 13 percent in 2012.
Sales psf at Bicester Village exceeded
€2,200 (the portfolio posts average
sales psf of €1,200).
Tourism:
5.8 million visitors in 2012, a 5.5
percent increase over 2011.
China, the Middle East and
Southeast Asia are the top-contributing nationalities at Bicester
Village, with UK tourists generating approximately 10 percent of
the center’s total sales. Non-EU
tourists represent about 66 percent of the international tourists
and generate a third of total sales.
30
I n ternational Ou tlet Journ al Fal l 2013
in a rural setting less than an hour from
London by train. Today the town of
Bicester, England, is as much known
for Value Retail’s designer outlet village
there as it is for its 1,000 years of Saxon
history and its proximity to Bleinheim
Palace (Winston Churchill’s ancestral
home) and Waddesdon Manor with
its world-renowned collection of 18th
century French decorative arts.
In sum, a visit to Bicester Village is an
imperative for shoppers, historians and
connoisseurs alike.
I took the 42-minute train ride from
London Marylebone with Tamara Benjamin, who heads up corporate communications at Bicester Village. She told
me that the outlet center is one of Value
Retail’s nine Chic Outlet Shopping
Villages, all located near Europe’s most
stylish capital cities and all filled with
fashion’s most sought-after labels.
Those coveted brands at Bicester Village include Céline, Dior, Gucci, Loro
Piana, Marni, MaxMara, Missoni, Moncler, Mulberry, Prada, Roberto Cavalli,
Smythson, Tumi and Valentino.
Pop-up boutiques are a regular feature
of the Villages, offering brands the opportunity to test new markets. In 2012 90
new and innovative pop-up boutiques and
temporary stores opened in Value Retail’s
centers. In fact, I shopped British designer
Lulu Guinness’ pop-up shop with its
whimsical accessories when I visited Bicester Village.
We took a short bus trip from the train
to the center and entered to a familiar
sight, a Ralph Lauren shop with prime
real estate. The beautiful store is a twostory anchor with a sprinkling of Purple
Label and Collection, along with Lauren
and Polo staples. As much as I love Lauren and the attentive sales help eager to
assist and find my size, I wanted to shop
the local brands, so I headed to Burberry,
where the shop was almost as gorgeous
as the flagship on Regent Street. I was
duly impressed.
Some less-well-known British brands
enticed me and at Temperley’s I found a
wonderful silk blouse (pink flowers, black
background, very English) that I can wear
with the assurance that I won’t see myself
coming and going in New York City.
I can’t afford the Jimmy Choo’s even
in his homeland, even at Bicester Village
(oh, they’re there!), but boy, did I find the
most gorgeous pair of Rupert Sandersons
at a third of their retail price. Metallic
animal print slingbacks with a 2-½ inch
heel, practical and fabulous, truly! They
had my name all over them, and again,
not a brand I see in the U.S., thus a special
shopping experience, really a delight.
I’m overwhelmed with the level of
service in the boutiques and amenities such as babysitting, valet parking,
handsfree shopping, VIP rooms and
multi-faith prayer areas throughout the
village. I took advantage of the handsfree shopping, allowing me to roam the
village and leave the staff to wrap up the
goods and bring them to the welcome
center where I picked them up before
leaving. What a nice way to shop!
Obviously, Value Retail’s secret sauce
for success is brands and service and
more service. The developer has teams
at each center to assist tenants and
provide expertise and support for brand
promotions, in-store presentations and
window displays. It works!
Other amenities were just as nice,
with numerous cafes and sandwich
shops and ice-cream vendors as well
as very clean WCs. I visited the VIP
lounge which was a pleasant, secondlevel complex (away from the madding
crowd) where clients can rest, leave
their bags, meet with personal shoppers,
and enjoy a beverage or light snack. So
very civilized. Currently, Bicester Village
and La Vallée Village near Paris have
VIP lounges, offering bespoke hospitality service. All VR villages will have VIP
lounges and VIP program managers by
the end of 2013. Guests who have used
the Bicester Village VIP lounge include
visiting dignitaries from embassies in
London and uppercrust socialites from
everywhere.
Tamara Benjamin told me that the international shopper spends significantly
more than the domestic shopper and
the average length of stay is four hours.
I stayed for five hours and didn’t visit
every store, but got to some twice!
By the way, I never made it to Waddesdon Manor; maybe next time. c
Bicester Village tenants
7 For All Mankind
Agent Provocateur
Alexander McQueen
All Saints
Amanda Wakeley
Amorino
Anne Fontaine
Annoushka
Anya Hindmarch
Aquascutum
Armani
Aubin & Wills
Bally
Basler
Belstaff
Bodum
Bonpoint
Bose
Boss Sportswear/Tailoring
Brooks Brothers
Burberry
Busaba Eathai
Calvin Klein/Underwear
Cath Kidston
Celine
Cerruti 1881 Homme
Charles Tyrwhitt
Church’s
Clarks
Coach
Coast
Coccinelle
Cosmetics Co.
David Clulow
Diane von Furstenberg
Diesel
Dior, Dior Homme
DKNY
Dolce & Gabbana
Dunhill
Emma Bridgewater
Ermenegildo Zegna
Fat Face
Fendi
Folli Follie
Fratelli Rossetti
Fred Perry
French Connection
Furla
Gerard Darel
Gieves & Hawkes
G-Star Raw
Gucci
Guess
Hackett
Hearts on Fire
Hobbs
Jack Wills
Jaeger
Jigsaw
Jimmy Choo
Juicy Couture
Karen Millen
Kids
Kipling
L.K. Bennett
La Perla
Lacoste
Lalique
Le Creuset
Levi’s
Links of London
L’Occitane
Loro Piana
Marni
Matthew Williamson
MaxMara
Michael Kors
Missoni
Molton Brown
Moncler
Mulberry
Musto
N. Peal
North Face
Orla Kiely
Orlebar Brown
Pal Zileri
Pandora
Paul Smith
Pavilion by Searcys
Penhaligon’s
Polo Ralph Lauren
Prada
Pret A Manger
Radley
Reiss
Roberto Cavalli
Rupert Sanderson
Salvatore Ferragamo
Samsonite
Savoy Taylors Guild
Sergio Rossi
Smythson
Superdry
TAG Heuer
Ted Baker
Temperley London
Thomas Pink
Timberland
Tod’s
Tommy Hilfiger
Tory Burch
True Religion
Tumi
Ugg Australia
Valentino
Versace
Vilebequin
Villeroy & Boch
Vivienne Westwood
Waterford Wedgwood
White Company
Wolford
Yves Saint Laurent
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
31
Global
Asia
Briefs
Shinsegae Simon opens
Busan Premium Outlets
The tenant line-up at the new center
includes such designer brands as
Coach, Zegna, Cavalli, DKNY,
Lacoste, Puma and Theory.
Korean shoppers knew to expect their favorite designer brands when
Busan Premium Outlets opened in late August.
32
I n ternational Ou tlet Journ al Fal l 2013
When Busan Premium Outlets opened on
August 29, developer Shinsegae Simon, a JV between
Shinsegae Group and Simon Property Group, had
something important to celebrate.
The new outlet center is the third Premium Outlet
Center in South Korea, proving that Koreans love outlet
shopping. Building on the success of the Yeoju and Paju
Premium Outlets near Seoul, Busan Premium Outlets is
on the southeastern tip of the Korean Peninsula and features 180 outlet stores. The center’s distinctive architectural design was inspired by the Tuscany region of Italy.
In addition to its full slate of designer names,
shopper amenities include a food court with a view
of the entire center and a safari-themed play area.
“We are pleased to bring another Premium Outlet Center to
the Korean Peninsula. Busan Premium Outlets will uniquely
serve area residents and visitors, offering high-quality brands at
great savings in an upscale environment,” said John R. Klein,
president of Simon’s Premium Outlets division. “This project
also created hundreds of new jobs and brings significant economic development to the area.”
The €110 million Busan Premium Outlets has 343,000 sf of
retail space.
The center is 21 km north of downtown Busan, the second
largest city in Korea, and is easily accessible via the Jangan IC and
Busan-Ulsan Expressway. It is a 30-minute drive from Haeundae
Beach Resort, the largest beach resort in Korea, which welcomes
20 million visitors annually.
Simon Property Group is the world’s largest developer of
outlet centers (see page 10 for related story) and Shinsegae
Group is one of Korea’s leading conglomerates. Shinsegae is
most renowned for advancing the retail industry in Korea. The
company owns and operates 10 department stores and 162
hypermarkets, as well as three Premium Outlet centers. c
Shoppers inch their way into Busan Premium Outlets,
which is just only 21 km north of Korea’s second largest city,
Busan Premium Outlets tenants
18 Beon Wandang Jip
A Twosome Place
Adidas
Armani Outlet
Auntie Anne’s
Banana Republic
Barbara
Bean Pole
Benetton
Black Yak
Boon The Shop
Boons Apothecary
Buckaroo
Busan County Store
C.P. Company
Calvin Klein Collection
Calvin Klein Jeans
Calvin Klein Underwear
Carter’s
Chervo
CK Calvin Klein
Club Monaco
Coach
Coleman
Columbia Sportswear
Coming Step
Comodo Square
Corelle & Corning
Couronne
Crocs
Customellow
Daks
DAKS ACC
Descent
Dewl
DKNY
Dunkin’ Donuts
Dunlop
Egoist
ELBON the Style
Ermenegildo Zegna
Eye Avenue
Fendi Kids
Fossil
Galaxy
Gallery O’Clock
Gap
Gaya Milmyun
G-Cut
Geox
Gucci Children
Guess
Guess Kids
Hazzys
Henckel & Staub
Henry Cotton
Hojupmong
Isabel Marant
Izzat Baba
J. Estina
JAJU
Jeep
Jigott
Jill by Jill Stuart
Jill Stuart
Johnny Rockets
Joseph
Juicy Couture
K2
Kipling
Kolon Sports
Kongjui Patjui
Korean
Kuho
Lacoste
Lafuma
LAP
Le Beige
Le Coq Golf
Le Coq Sportif
Le Creuset
Lego
Lenox & Royal Albert
LeSportsac
Levi’s
Levi’s Kids
Lucky Chouette
Maje
Mamas & Papas
Mandarina Duck
Marc Jacobs
MaxMara
Michaa
Michael Kors
Milk & Honey
Millet
Mine
MLB
Mogg
Mom’s Mom
Moschino
Mountain Hardwear
Mue
MVIO
Neil Barrett
New Balance
Nike
Nike Golf
Nina Ricci
Noodle & Wok
North Face
O’2nd
Obzee
Oilily
Oilily Kids
OshKosh B’Gosh
Pal Zileri
Pearly Gates
Perfume Shop
Phillips
Plastic Island
Polo Ralph Lauren
Prima Classe
Puma
Puma Golf
Pungwonjang
Raum
Reebok
Roberto Cavalli
Rockport
Royal Copenhagen
Saboten
Saera
Salvatore Ferragamo
Samsonite
Sandro
School Food
Series
Shoemarker
Sieg
Sisley
SJSJ
Smoothie King
Soda
Solid Homme
Starbucks
Stickhouse
Stone Henge
Stone Island
Suecomma Bonnie
System
System Homme
Tandy
Tartine et Chocolat
TaylorMade
Tefal
Theory
Theory Man
Time
Time Homme
Tom Grey Hound
Tomboy
Tommy Hilfiger
Triumph
True Religion
Ugg
Uiryung Gookbap
Vanessa Bruno
Venus
Vidi Vici
Vince
Vivien
Vivienne Westwood
VOV
Wacoal
Watch Station
With me CVS
Wonderbra
Fall 2 0 1 3 I nt e r nat io na l O u t l e t J o ur n a l
33
Asia
Outlet development
heats up in Malaysia
Johor started the fire
that Horizon Group
and Mitsui are hoping
to capture near
Kuala Lumpur.
Outlet development is bubbling in Malaysia with at least two major
projects under way.
l Horizon Group Properties, which
has been developing outlet centers in
the U.S. for more than 20 years, has
formed a partnership with Mainstay
Properties of Malaysia to develop
The Outlet Shoppes of Greater Kuala
Lumpur.
l Malaysian Airports Holdings
has partnered with Mitsui Fudosan,
developer of more than a dozen outlet
centers in Japan and China, to develop
Mitsui Outlet Park Kuala Lumpur International Airport.
The Horizon/Mainstay site is along
the B15 trunk road and highly visible from Elite Highway in Sepang,
Selangor, just south of Kuala Lumpur.
Construction on the 28,000-m2 phase 1
will begin in 2014, with the grand opening scheduled for 2015. Horizon, which
holds a 30 percent stake of the JV, will
handle leasing and management of the
center.
Horizon Group currently owns six
U.S. outlet centers totaling 200,000 m2.
The developer also has three projects
in development that are planned to
open in the U.S. by 2015, and another
under way in China, Globe Outlet
Changsha in Hunan Province, which is
a joint venture with Richley Field.
Mainstay Properties is a subsidiary
of Mainstay Holdings, a group of
property management and construction companies.
Mitsui’s site is within the premises of Kuala Lumpur International
Airport, which is about 60 km south
of Kuala Lumpur, about 40 minutes
34
I n ternational Ou tlet Journ al Fal l 2013
Johor Premium Outlets was the first outlet center to open in Malaysia.
by car. The airport handles nearly 45
million people annually. The outlet
center will be developed on a 46,300m2 parcel that is part of 180,000 m2
set aside for golf courses, a theme
park, a convention center and other
commercial uses.
Phase 1 of Mitsui Outlet Park KLIA,
set to open in 2015, will be 25,000 m2.
Mitsui has a 70 percent stake in the
venture. Mitsui is the co-developer of
Shanjing Outlet Plaza-Ningbo, which
opened in China in 2011.
Three hours south of these two
planned projects is the center that
brought U.S.-style outlet retailing to
Malaysia: Johor Premium Outlets,
which opened in 2011. The 173,000-sf
center, one hour from Singapore, was
developed in a 50-50 deal by Simon
Property Group and Genting Berhad.
Johor Premium Outlets is close to
Senai Airport, less than an hour’s drive
from the city center of Singapore. The
development of that center was so
eagerly anticipated and intensely covered
by the Malaysian press that the country’s
prime minister officiated at the inaugural
ceremonies.
Outlet tenants at Johor Premium
Outlets include Adidas, Armani Outlet,
Brooks Brothers Factory Store, Burberry, Canali, CK Calvin Klein, Coach,
DKNY, Fossil, Geox, Guess, Lacoste,
Michael Kors, Nike, Polo Ralph
Lauren, Puma, Quiksilver, Salvatore
Ferragamo, Tommy Hilfiger, Tumi,
Versace and Zegna. c
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