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Save This Date: 13-14 June for the 2013 Outlet Connections Plus<br />

A Grand Time<br />

for Outlets<br />

Promos opens Cilento Outlet Village<br />

Outlet revitalization in Ochtrup<br />

China’s Mega Mills opens<br />

CileNTO<br />

OuTleT VillAGe<br />

Mega Mills, Shanghi, China<br />

MCG gets approval in Provence<br />

Neinver/MAB plans a Dutch center<br />

What’s wrong with Finland?


Got a VrN APP-etite?<br />

Go to the App Store for your free VRN<br />

app to have the latest outlet industry<br />

news at your fingertips. Check out<br />

the IOJ and Industry Stats pages<br />

on the app, plus our Twitter<br />

and Calendar pages.<br />

PAGe 6 PAGe 8<br />

PAGe 12<br />

STAFF<br />

iCSC/iOJ<br />

2519 N. McMullen Booth Rd.<br />

Suite 510-356<br />

Clearwater, FL 33761<br />

+1 727 781 7557<br />

liNDA HuMPHerS<br />

Editor in Chief / Director ext. 3<br />

lhumphers@icsc.org<br />

rANDy GDOViN<br />

Art Director ext. 4<br />

rgdovin@icsc.org<br />

KAreN KNOBelOCH<br />

Advertising Prod. Mgr. ext. 2<br />

kknobeloch@icsc.org<br />

SAlly STePHeNSON<br />

Senior Advertising Executive<br />

+1 847 835 1617<br />

Fax: +1 847 835 5196<br />

sstephenson@icsc.org<br />

iCSC eurOPe<br />

London, +44 20 7976 3100<br />

icsc.europe@icsc.org<br />

I<br />

BrAD M. HuTeNSKy<br />

ICSC CHAIRMAN<br />

MiCHAel P. KerCHeVAl<br />

ICSC PRESIDENt AND CEO<br />

ruDOlPH e. MiliAN, SCSM, SCMD<br />

ICSC SENIOR VP<br />

International Outlet Journal is a publication for the<br />

non-U.S. factory outlet industry. Copyright © 2013<br />

InsIde<br />

Advertiser index<br />

Fashion House ..................................... BC<br />

Fashion Outlets of Chicago ................. IBC<br />

McArthurGlen ...........................IFC, 10-11<br />

CONTENTS<br />

Vol. 9 No. 2 Spring 2013<br />

4 <strong>News</strong> Up Front: Resolution acquires Rosada<br />

Factory Outlet<br />

6 Promos opens Cilento Outlet Village on the Amalfi<br />

Coast<br />

8 RDG breathes life into a Westphalian outlet center<br />

12 Pearl River, Welead and The Outlet! Company<br />

open Mega Mills<br />

14 Why Finland needs Russians, for outlets, that is<br />

16 Global <strong>News</strong>: McArthurGlen gets the green light in France;<br />

Neinver and MAB plan their first center in the Netherlands;<br />

Stable International moves forward on several projects; Prada<br />

expands two outlets in Italy; Designer Outlets Wolfsburg posts<br />

double-digit increases and plans an expansion; Nike and<br />

Adidas open in Changsha; MCG leasing update.<br />

18 Outlet meeting gets a makeover<br />

CHeCK iT OuT:<br />

The 2013 Outlet Connections Plus<br />

June 13-14 in Hamburg<br />

See page 18 for details.<br />

Neinver ................................................... 5<br />

Outlet Connections Plus ....................... 17<br />

<strong>Value</strong> <strong>Retail</strong> .......................................... 15<br />

SpriNg 2013 INTeRNATIONAl OuTleT JOuRNAl 3


Up frONT<br />

resolution acquires rosada Factory Outlet<br />

reSOluTiON Real Estate acquired<br />

Rosada Factory Outlet in Roosendaal,<br />

Netherlands, on December 12,<br />

2012 from CBRE Global Investors.<br />

Resolution plans to expand the<br />

176,300-sf center with a 77,500-sf<br />

phase 2, set to open in 2014. Resolution<br />

reported that it will have invested more<br />

than €30 million in the acquisition and<br />

expansion.<br />

The center, originally developed by<br />

U.S.-based MDG, opened in 2006 and<br />

is currently about 85 percent occupied.<br />

Among the center’s 50 tenants are Converse,<br />

Dockers, Ecco, Gant, Levi’s, Nike,<br />

Petite Bateau, Puma, Reebok, Skechers<br />

and Tom Tailor. Average annual rents in<br />

the project are €240 per m 2 .<br />

“On completion of the second<br />

phase of development, Rosada will<br />

have critical mass to become the<br />

dominant retail destination in its large<br />

cross-border catchment area,” said Peter<br />

Todd, head of Resolution Property’s<br />

European retail investments. “The<br />

extension of the asset, combined with<br />

an optimized tenant mix, should meet<br />

the requirements of our value-added<br />

investment strategy.”<br />

Roosendaal, in southwest Netherlands,<br />

is 50 km south of Rotterdam<br />

and 40 km north of Antwerp in<br />

Belgium, which gives it a Dutch and<br />

Belgian catchment of 18 million within<br />

90 minutes and 8.4 million within 60<br />

minutes. The center is 90 minutes<br />

south of Batavia Stad Fashion Outlet<br />

in Lelystad, Netherlands, and 90<br />

minutes west of both Maasmechelen<br />

Village and McArthurGlen Luxembourg,<br />

both in Belgium. The two latter<br />

centers are about 30 minutes apart.<br />

Roosendaal is also about 90 minutes<br />

south of Amsterdam, where Neinver<br />

and MAB plan to develop an outlet<br />

center (see page 16).<br />

Resolution also owns Park Avenue<br />

Fashion Outlet in Bilbao, Spain; and<br />

McArthurGlen Troyes and McArthur-<br />

Glen Roubaix in France. Stable International,<br />

which has been handling leasing,<br />

marketing and management of Rosada<br />

Factory Outlet center since 2010, will<br />

continue in that role. Stable recently<br />

said the center posted an 8 percent sales<br />

increase for 2012. Stable also operates<br />

Batavia Stad, which posted a 7 percent<br />

increase in sales for 2012. c<br />

4 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

rosada Factory Outlet in roosendaal, Netherlands


Roppenheim The Style Outlets<br />

We look after the brands as if they<br />

were our own<br />

All the brands have their own interest but just one joins them all: selling.<br />

That’s why 800 of the world’s best brands put their trust in NEINVER. Because we are<br />

the second largest outlet operator in Europe, managing more than 293,000 sq.m. GLA<br />

and 1,400 stores. Because we manage 14 outlet centers operating under the brands<br />

The Style Outlets and FACTORY in Spain, Italy, Poland, Portugal, Germany and France<br />

and 5 more about to be opened.<br />

We recognize that the success of a brand is also ours. This is what has made us leaders.<br />

neinver.com


CENTEr OpENiNg<br />

Cilento Outlet Village<br />

opens to big crowds<br />

6 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

Promos’ newest outlet<br />

village will cater to<br />

the 6 million upscale<br />

tourists who visit the<br />

Campania each year.<br />

CileNTO OuTleT Village opened December<br />

15, 2012, in Eboli, which is 30<br />

miles from Salerno on the Amalfi Coast.<br />

The center was developed by Irgenre<br />

Group of Campania and Promos, the<br />

Brescia-based company headed by Carlo<br />

Maffioli. Promos has carried out the<br />

leasing and marketing on the €80 million<br />

center, with its subsidiary Promanagment<br />

handling operations.<br />

In the first 10 days it was open, more<br />

than 200,000 visited the 24,000-m 2 phase<br />

More than 6 million affluent tourists visit the Campania<br />

region of Italy each year.


1 of Cilento Outlet Village, the only<br />

outlet project to open in Italy in 2012.<br />

Promos expects 3 million visitors during<br />

the first year of business. At completion,<br />

the center will be 34,000 m 2 .<br />

“At a difficult time like this that the<br />

Italian economy is experiencing, opening<br />

Cilento Outlet Village is an important<br />

sign of optimism,” Carlo Maffioli said.<br />

Cilento Outlet Village is along state<br />

highway S.S. 18, which links Salerno to<br />

Paestum, close to the Battipaglia exit<br />

on the three-lane section of the A3<br />

Salerno-Reggio Calabria motorway. The<br />

center’s catchment covers all of central<br />

and southern Campania and western<br />

Basilicata, including Salerno, Potenza<br />

and Avellino, Naples and part of the<br />

provinces of Benevento and Caserta.<br />

More than 2.5 million people live within<br />

a 60-minute drive of the center and 5<br />

million live within 90 minutes.<br />

More than 6 million tourists, mostly<br />

upper-class visitors from the U.S., Great<br />

Britain, Germany, France and Japan, visit<br />

the Campania region every year. They are<br />

attracted by the area’s exceptional scenery,<br />

history and cultural resources, as well<br />

as the lovely beach resorts of Capri and<br />

Ischia, Positano and Procida, Amalfi and<br />

Sorrento, Punta Licosa and Palinuro.<br />

The tenant list is filled with<br />

Italian and international fashion<br />

brands, including Missoni, Galliano<br />

and MaxMara Group, alongside<br />

prestigious multibrand stores like<br />

Fashion Store and Luxury Mall.<br />

The casual trend is represented<br />

by Fiorucci, Geox, Benetton and<br />

Harmont & Blaine, and there are<br />

also several major sports brands,<br />

including Nike, Puma and Adidas.<br />

Bialetti, Livin’ De Longhi and<br />

Borgo Tessile fill the need for<br />

homegoods, and particular attention<br />

has been devoted to the excellent<br />

cuisine and fine wines of the<br />

Campania Region.<br />

Promos is also developing Scalo<br />

Milano Outlets & More, which<br />

is planned to become the largest<br />

mall of its kind in Europe (see the<br />

Winter 2013 IOJ for more details).<br />

Scalo Milano will directly link to<br />

Milan via the subway network. c<br />

Cilento Outlet Village, eboli, italy<br />

CileNTO OuTleT VillAGe TeNANTS<br />

Adidas-Reebok<br />

Alcott<br />

Barbuti<br />

Basile<br />

Bata<br />

Bencivenga (opening soon)<br />

Benetton<br />

Bialetti<br />

Bikiniworld<br />

Borgo Tessile<br />

Borgofiori (Valentino)<br />

Bottega del Sarto<br />

Byblos<br />

Calvin Klein<br />

Camicissima<br />

Camomilla Italia<br />

D&G<br />

Desiree (opening soon)<br />

Diffusione Tessile<br />

Docksteps<br />

Eddicott<br />

Ermanno Scervino (GF Ferré)<br />

Fiorucci<br />

Fracomina<br />

Galliano<br />

Gattinoni<br />

Geox<br />

Gianni Ragusa<br />

Gioielleria Magliano<br />

Giunti al Punto<br />

Golden Point<br />

Gutteridge<br />

Harmont & Blaine<br />

Harmont & Blaine Junior<br />

Hill’s Store<br />

It Fashion<br />

Ivy Oxford<br />

Jaked (opening soon)<br />

Just Cavalli<br />

Kocca<br />

Livin’ de’ Longhi<br />

Luxury Mall (Versace)<br />

Marina Militare<br />

Miriade<br />

Missoni<br />

Modus Profumerie<br />

Nike<br />

Nuvola (opening soon)<br />

Outly<br />

Piacenza<br />

Portobello<br />

Primigi<br />

Puma<br />

Ragno-Lanificio di<br />

Tollegno<br />

Replay<br />

Rifle<br />

Roberta Biagi<br />

Roberto Cavalli<br />

Roccobarocco<br />

Satur Passione Casa<br />

Sergio Rossi<br />

Tailor Club<br />

Tommy Hilfiger<br />

Yamamay (opening soon)<br />

SpriNg 2013 INTeRNATIONAl OuTleT JOuRNAl 7


CENTEr OpENiNg<br />

FOC Ochtrup<br />

expands, opens<br />

Factory Outlet Ochtrup combines an enclosed mall with a village setting.<br />

8 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

The outlet center is a<br />

revitalization and<br />

expansion of a small<br />

project that opened in<br />

2004 in Münsterland.<br />

reDeVelOPiNG an outlet<br />

center, particularly one that is relatively<br />

new, is a little bit of a rarity, but it does<br />

occasionally happen. <strong>Retail</strong> Development<br />

Group of Cologne recently<br />

accomplished this feat with the 2012<br />

opening of Factory Outlet Center<br />

Ochtrup, which is in the North Rhine-<br />

Westphalia region of Germany.<br />

When the project originally opened in<br />

2004, it was small – just 3,500 m 2 – and<br />

sparsely occupied. RDG subsequently<br />

redeveloped and expanded it to 17,000<br />

m 2 , making room for an additional 80<br />

brands, to bring the total to more than<br />

100 stores. Although FOC Ochtrup<br />

opened under the radar screen last<br />

August, it has already seen more than 1<br />

million visitors in the first six months,<br />

according to Ulrich Nordhorn, the<br />

CEO of <strong>Retail</strong> Development Group.<br />

“We didn’t make too much noise,”<br />

Nordhorn said. “It was a very small<br />

outlet center in the beginning because it<br />

couldn’t get approvals for anything bigger.<br />

We sued, we won, and we were able<br />

to bring it up to the proper size.”<br />

Nordhorn told VRN in January that<br />

the center was more than 90 percent<br />

occupied and that he has no doubt the<br />

center will hit its projections of 2 million<br />

to 2.5 million visitors in the first year.<br />

The catchment for FOC Ochtrup is<br />

nearly 9 million people. “It’s a region that<br />

has city next to city, one blending into<br />

the next,” Nordhorn said. “It is the most<br />

densely populated state in Germany.”<br />

The center itself, the only outlet center<br />

in North Rhine-Westphalia, is in the Münsterland,<br />

between Enschede (in the Netherlands),<br />

Osnabrück (in Germany) and


the Rhine-Ruhr Area (also in Germany).<br />

The catchment includes 4.7 million people<br />

within 60 minutes and 15.6 million within<br />

90 minutes. In addition, the Münsterland’s<br />

5 percent unemployment rate is below<br />

Germany’s average, and its 11.5 percent<br />

purchasing power is above average.<br />

The center has four restaurants, including<br />

the new German-style McDonalds,<br />

which Nordhorn describes as having<br />

gourmet coffees, computer screens<br />

and self-pay stations. “We have 800 seats<br />

for restaurants in the food court,” he<br />

said. “It’s similar to Sawgrass Mills in<br />

Florida. We also have great Turkish, Italian<br />

and German restaurants.”<br />

<strong>Retail</strong> Development Group is developing<br />

FACTOry OuTleT CeNTer OCHTruP TeNANTS<br />

Alfi<br />

Apriori<br />

Ara-Shoes<br />

Benvenuto<br />

Bianca<br />

Björn Borg<br />

Bugatti<br />

CECEBA Bodywear<br />

Cecil<br />

Clarks<br />

Crocs<br />

Daniel Hechter<br />

DC<br />

Depot<br />

Desigual<br />

Dockers<br />

Dornbusch<br />

EDC by Esprit<br />

Esprit<br />

Eterna<br />

Fossil<br />

Garcia<br />

Gelco<br />

Geox<br />

Heilemann Confiserie<br />

Home<br />

Hunkemöller<br />

Jack & Jones<br />

Jacques Britt<br />

Kanz<br />

a new outlet center south of Westphalia.<br />

Nordhorn said he couldn’t reveal details<br />

until mid-April, but he did give IOJ a hint<br />

Laurél<br />

Levi’s<br />

Marc Aurel<br />

Marc O´Polo<br />

Marc Picard<br />

Mephisto<br />

Mexx<br />

More & More<br />

Möve<br />

Nike<br />

Olsen<br />

Only<br />

Otto Kern<br />

Pampolina<br />

Pieces<br />

to the new project’s location. “It’s close to<br />

Stable Development’s site in Montabaur.<br />

They’re not going to be happy,” he said. c<br />

Pierre Cardin<br />

Puma<br />

Quiksilver<br />

Ravensburger<br />

Redford<br />

Roxy<br />

Salamander<br />

Samsonite<br />

Sanetta<br />

Schiesser<br />

Schmuck & Uhren*<br />

Schwarze Rose<br />

Seidensticker<br />

Sigikid<br />

Silit<br />

Skagen<br />

Speidel<br />

Steiff<br />

Street One<br />

Superfit<br />

Tom Tailor<br />

Vero Moda<br />

Vila<br />

Watch Station<br />

WMF<br />

*Schmuck & Uhren is a multibrand retailer that sells Adidas, Armani, Diesel, DKNY, Marc Jacobs, Michael Kors and Zodiac.<br />

SpriNg 2013 INTeRNATIONAl OuTleT JOuRNAl 9


EOC CENTEr rECap OpENiNg<br />

Super opening<br />

for Mega Mills<br />

Mega Mills in Shanghai includes 130 outlet stores and a 35,000-sf food court.<br />

12 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

Shanghai embraces its<br />

newest outlet project,<br />

which has all the upscale<br />

components of the best<br />

centers around globe.<br />

MeGA MillS opened to the public<br />

on January 18 in Shanghai, welcoming<br />

more than 130 international luxury<br />

brands and well-known domestic labels.<br />

The project is an open-air shopping<br />

center with two levels of retail and approximately<br />

3,000 indoor and outdoor<br />

parking spaces.<br />

Mega Mills is owned by the Pearl<br />

River Real Estate Group and jointly<br />

managed by Shanghai Welead Investment<br />

Co. Ltd. and The Outlet! Company.<br />

The new center is a world-class<br />

outlet shopping destination in the<br />

Shanghai market. Following<br />

its grand opening in<br />

late April, Mega Mills will<br />

offer a total of 575,000<br />

sf of leasable area,<br />

including the 35,000-sf<br />

Grand Gourmet Food<br />

Court, a nine-screen<br />

cinema and a variety of<br />

upscale restaurants and<br />

cafes.<br />

Under a long-term<br />

management partnership,<br />

Shanghai Welead Investment<br />

Co. Ltd and The<br />

Outlet! Company provide<br />

comprehensive services<br />

and amenities reflective<br />

of the outlet industry’s<br />

highest standards. These<br />

features include three<br />

information centers, a VIP<br />

Lounge, children’s playground<br />

facilities, shuttle<br />

bus services, and an employee<br />

cafeteria.


The Outlet! Company<br />

will open its second project<br />

in China, in Nanjing. The<br />

438,000-sf Nanjing East<br />

Suburb Outlets will open in<br />

late 2014 as a single-story,<br />

standard racetrack design with<br />

2,300 outdoor parking spaces.<br />

Also in development and<br />

opening in late 2014 is The<br />

Outlet! Company’s first outlet<br />

project in Taiwan. The Gloria<br />

Outlet, 40 minutes southwest<br />

of Taipei, will feature<br />

250 stores, a large-scale food<br />

court, international restaurants<br />

and cafes, and a cinema. The<br />

54-acre site was secured in October<br />

2012, and construction is expected to<br />

begin this fall.<br />

The Outlet! Company, is led by Daniel<br />

Kelly, a pioneer in the Asian outlet<br />

industry. During his 16-year tenure with<br />

Simon Chelsea Premium Outlets, he led<br />

the leasing efforts and was instrumental<br />

in the group’s successful entry into<br />

international markets including Japan,<br />

Korea and Mexico. He now brings his<br />

extensive retailer relationships and experience<br />

in site selection, design, planning,<br />

leasing, marketing, property management<br />

to The Outlet! Company. c<br />

MeGA MillS TeNANTS iNCluDe:<br />

15 minutes<br />

Adolfo Dominguez<br />

Agatha<br />

Anna Sui<br />

Anteprima<br />

Asics<br />

Audrey<br />

Balmain<br />

Biem.L.Fdlkk<br />

Blocco 5<br />

Bou Jeloud<br />

Braun Buffel<br />

Bread N Butter<br />

CH Carolina Herrera<br />

Charles River<br />

City Chain<br />

Club Monaco<br />

Cocktail la mode<br />

Cordier<br />

D.Anuo<br />

Daniel Cremieux<br />

De Verli<br />

De Verli Underwear<br />

Dell’ga<br />

Devil Nut<br />

Dinosaur<br />

Disney Baby<br />

DKNY<br />

Donatello’s<br />

Ed Hardy<br />

Element Fresh<br />

Emely<br />

EQ:IQ<br />

Ermenegildo Zegna<br />

Esprit Home<br />

Evisu<br />

Ferre<br />

Fiona’s Prince<br />

Fossil<br />

Furla<br />

Gastone Lucioli<br />

Gentle<br />

Hazzys<br />

Howard Miller<br />

Huang Shu Chi<br />

Ice Iceberg<br />

Indivi<br />

ISE<br />

Jack & Jones<br />

Jaguar<br />

Joan & David<br />

Juicy Couture<br />

Just Cavalli<br />

Kaltendin<br />

Mega Mills was the successful outcome of a joint venture between Shanghai Welead<br />

Investments and the Outlet! Company.<br />

Kelly & Chris<br />

Kieninger<br />

Kopi Luwak<br />

Krorayna<br />

L.L. Bean<br />

La Mia<br />

Lai Car Fore<br />

LensCrafters<br />

Li Hao<br />

Liu Jo<br />

Liu Jo Jeans<br />

Lonsdale<br />

LuLualways<br />

Maison Mode<br />

Mangano<br />

Mark Fairwhale<br />

Maxstudio<br />

Michael Kors<br />

Mo & Co<br />

MOGG<br />

MOGG Pink<br />

Morellato<br />

Naturalizer<br />

Nine West<br />

Oakley<br />

Oasis<br />

O’blu<br />

Odbo<br />

Oikos<br />

Onitsuka Tiger<br />

Only<br />

Orbita<br />

OVS<br />

P+<br />

Patrizia Pepe<br />

Pierre Balmain<br />

Pineider<br />

Pinko<br />

Pizza Hut<br />

Reneevon<br />

Replay<br />

Ricco e Fama<br />

Roberto Cavalli<br />

Roberto de Camerino<br />

S.D. Spontini<br />

S.T. Dupont<br />

SC Fashion<br />

Scatola del Tempo<br />

Selected<br />

Seven Days<br />

Shanghai Tang<br />

Shanghai Vive<br />

Shiatzy Chen<br />

S’I<br />

Sisley<br />

Spige<br />

Starbucks<br />

Stefanel<br />

Steve Madden<br />

Swarovski<br />

Swank<br />

Talbots<br />

Ted Baker<br />

Testoni<br />

Test-Tube<br />

Thomas Pink<br />

TNGT<br />

Tony Jeans<br />

Toon’s Land<br />

True Religion<br />

Umbro<br />

United Colors of Benetton<br />

Vasto<br />

Vero Moda<br />

Versace<br />

VOV<br />

Watch Station<br />

Woo<br />

Zukka Pro<br />

Zuma<br />

SpriNg 2013 INTeRNATIONAl OuTleT JOuRNAl 13


gUEST COlUmN<br />

Finland’s outlet potential<br />

Russian tourists, who<br />

have money to burn on<br />

upscale brands, are the<br />

shoppers to target, not<br />

the conservative Finns.<br />

By ilya Nikitin<br />

With only two planned projects<br />

in Finland’s outlet pipeline, the outlet<br />

boom has not yet arrived in Finland.<br />

As of mid-February, neither of the<br />

two projects – Nordlett’s Outlet Village<br />

Oulu and Krüüg Outlet Solutions’<br />

Lohja Fashion Outlet – had announced<br />

any financing.<br />

Nordlett is planning a center in Oulu,<br />

which has about 150,000 inhabitants. The<br />

site for the village-style project is 160 km<br />

from the polar circle, which means that<br />

Nordlett has great faith in the frost-resistance<br />

of potential shoppers.<br />

Krüüg’s plan for Lohja keeps all of<br />

the shops under one roof, and the site<br />

is just 60 km from Helsinki, amid three<br />

of the biggest cities in the country.<br />

However, the planned huge building<br />

on the hill could be costly for a smallmargin<br />

outlet center.<br />

While Nordlett is working with Rioja<br />

Development on obtaining financing,<br />

participating in conferences and attracting<br />

tenants, Krüüg has been quiet lately.<br />

But where are Europe’s top outlet<br />

developers? Why haven’t they come<br />

to Finland?<br />

Developing an outlet center in a<br />

region of 3.6 million people within a<br />

60-minute drive is quite common in Europe.<br />

Why not in Finland? And closer to<br />

Helsinki there are sites with a catchment<br />

of 2 million people, more than enough<br />

population considering the city’s high<br />

consumer price index.<br />

I believe the outlet community has ignored<br />

Finland because Finns are famous<br />

for their indifference toward trendy<br />

clothing. The main priority for Finns is<br />

comfort, so there is not much demand<br />

for high-profile brands here. Perhaps<br />

upscale brands don’t understand that<br />

14 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

opening outlets in Finland would be a<br />

good way to introduce themselves to a<br />

whole new set of shoppers.<br />

In any case, developers should<br />

think beyond the local population<br />

when assessing the outlet potential<br />

of Finland. Instead, consider the<br />

power of Russian shoppers and how<br />

much they spend in Europe. At Italian<br />

outlet centers Russians ranked third<br />

in purchasing. In 2011 Russians spent<br />

around €42 billion shopping abroad.<br />

During the financial crisis in Europe<br />

and particularly in Italy, there was no<br />

drop in sales at outlet centers. Much<br />

of this stability came from shopping<br />

tourists from Russia and Asia.<br />

There are two reasons that Russians<br />

shop in Europe: lower prices and<br />

authenticity of goods. Prices in Russia<br />

are two-to-three times higher than in<br />

Europe due to administrative and customs<br />

expenses, and counterfeit clothing<br />

of famous brands totals 37 percent<br />

of total sales there.<br />

In 2012 Russians made 3.4 million<br />

visits to Finland through various<br />

border-crossing points. This number<br />

will continue to rise and is expected to<br />

reach 5.5 million annual arrivals by 2014.<br />

To further increase the tourist flow,<br />

many cities in Finland are looking at a<br />

36-hour visa-free system for Russians.<br />

The 6 million citizens of St. Petersburg<br />

and its regions account for 70 percent<br />

of the Russian visitors to Finland. Thus,<br />

a visa-free window would be extremely<br />

valuable to Finnish retailers.<br />

St. Petersburg, a five-hour drive<br />

from Helsinki, is the third largest city<br />

in Europe after Moscow and London.<br />

Almost 80 percent of Russian visitors<br />

to Finland come just to shop, spending<br />

around €200 million on clothes, shoes<br />

and accessories in 2012. Tax-free purchases<br />

by Russians also increased by 26<br />

percent over 2011.<br />

Russian tourists in Helsinki buy<br />

clothes, shoes and accessories from the<br />

medium-high and premium pricing sectors,<br />

whereas in towns near the border<br />

money is spent on moderate clothing,<br />

household and sporting goods.<br />

The average consumption of Russian<br />

tourists is much higher than that of<br />

Finns. Russians are eager to buy fashion<br />

brands, and despite the distance and<br />

expensive parking charges, almost half<br />

come to Helsinki, where they drop €100<br />

million annually.<br />

Satisfying the needs of Russian tourists<br />

provides a strong justification for developing<br />

an upscale outlet center in southeastern<br />

Finland. However, to be successful,<br />

the center must not be packed with<br />

the moderate and less-celebrated brands<br />

often found in the mid-market projects in<br />

Central and Eastern Europe. c<br />

Ilya Nikitin is the managing director<br />

of Akado Oy, a developer based in<br />

Kouvola, Finland.


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glObal briEfS<br />

mCg gets the go-ahead in france<br />

MCArTHurGleN, Europe’s<br />

largest owner, developer and manager<br />

of designer outlet centers, has<br />

received retail planning approval<br />

for its newest planned project,<br />

McArthurGlen Designer Outlet<br />

Provence.<br />

The approval, granted Jan. 29,<br />

allows for a 26,000-m 2 (280,000sf)<br />

center in Provence-Alpes-Côte<br />

d’Azur. The site is in the city of<br />

Miramas, 45 minutes from Aixen-Provence<br />

and 50 minutes from<br />

Marseilles. It is near the junctions<br />

of the A8, A7 and A54 motorways,<br />

linking Marseilles with Nice, Lyons,<br />

Avignon and Nîmes. The city also<br />

benefits from a high-speed TGV rail<br />

New tenants at McArthurGlen Designer Outlets<br />

CeNTer TeNANT OPeNiNG GlA (M2 )<br />

Ashford Hamleys Dec-12 1,518<br />

Wagamama (restaurant) Dec-12 2,296<br />

Cheshire Oaks Church’s Dec-12 1,689<br />

Fossil Dec-12 3,130<br />

Joseph Dec-12 1,419<br />

Lulu Guinness Nov-12 724<br />

Watch Station Dec-12 1,385<br />

la reggia Armani Jan-13 294<br />

Michael Kors Nov-12 181<br />

Pepe Jeans Dec-12 176<br />

Polo Ralph Lauren (2nd store) Dec-12 879<br />

livingston Kurt Geiger Dec-12 1,808<br />

timberland Nov-12 2,873<br />

Neumünster triumph Dec-12 151<br />

Veneto Diesel Jan-13 361<br />

Michael Kors Nov-12 197<br />

New Balance Dec-12 149<br />

Parndorf 7 For All Mankind Dec-12 112<br />

Bally Nov-12 182<br />

Swarovski Nov-12 54<br />

Zwilling Dec-12 112<br />

roermond Kipling Dec-12 107<br />

Ralph Lauren Nov-12 172<br />

roubaix Kookai Dec-12 183<br />

Salzburg Clarks Dec-12 219<br />

Serravalle Armani Jan-13 300<br />

Marina Militare Jan-13 162<br />

16 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

station within walking distance of<br />

the center. With more than 30 million<br />

tourists visiting the southeast<br />

of France every year, the site has<br />

enormous tourist potential. The<br />

Provence-Alpes-Côte d’Azur region<br />

is the second most visited tourist<br />

destination in France, after Paris.<br />

McArthurGlen Designer Outlet<br />

Provence will be MCG’s 23 rd outlet<br />

center, with its 22 nd due to open<br />

in Vancouver in 2014. And it will<br />

be MCG’s third in France, with<br />

McArthurGlen Troyes opening in<br />

1995 and McArthurGlen Roubaix in<br />

1999. Tax-free sales at MCG’s 21<br />

Designer Outlets increased by more<br />

than 60 percent in 2012.<br />

Neinver-MAB<br />

to develop FOC<br />

near Amsterdam<br />

NeiNVer AND MAB Development<br />

will develop an 18,000-m 2 outlet center<br />

in a former factory site near Amsterdam.<br />

The project, planned to open in<br />

2015, will carry Neinver’s “The Style<br />

Outlets” branding, which is reserved for<br />

the developer’s most upscale centers.<br />

In December 2009, the municipality<br />

of Haarlemmerliede adopted a zoning<br />

plan for Sugar City, a multi-use complex<br />

that will include the outlet center,<br />

a supermarket, a hotel, entertainment<br />

areas and offices. The site, close to<br />

Amsterdam, Haarlem and Schiphol<br />

can be reached from the A200 via the<br />

N200, and the Amsterdam-Haarlem<br />

train will have a stop directly in front<br />

of the outlet center.<br />

Neinver, Europe’s second largest<br />

outlet developer after McArthurGlen,<br />

operates 14 outlet centers totaling<br />

293,000 m 2 of GLA under the FAC-<br />

TORY and The Style Outlets brands.<br />

MAB Development and Neinver<br />

established a joint venture in 2010 to<br />

develop 135,000 m 2 of outlet space<br />

totaling €350 million through 2015.<br />

SugarCity Investments has been<br />

involved in the redevelopment of the<br />

former CSM site since 2000.<br />

Dalton Park<br />

celebrates 10 years<br />

of growth<br />

iNG reAl eSTATe’S Dalton Park,<br />

the biggest outlet center in the Newcastle<br />

region of England, celebrates<br />

its 10th birthday this year with positive<br />

2012 results. As sales on the high<br />

street were flat, Dalton Park posted a<br />

7 percent increase in overall sales for<br />

the year ending December 30, 2012.<br />

Comparative sales were up 5 percent<br />

for the period, and footfall grew 5<br />

percent to an all-time high of 2.85<br />

million visitors. Boxing Day footfall<br />

was up by 14 percent.<br />

In addition to strong sales growth,<br />

Dalton Park has received four ISO 14001<br />

accreditations. The center also won the<br />

County Durham 2012 Environment<br />

Award for its waste management.<br />

(Continued on page 18)


ICSC Outlet<br />

Connections Plus<br />

13-14 June 2013<br />

Radisson Blu Hotel Hamburg Airport, Hamburg, Germany<br />

In association with:<br />

Outlet Expansion:<br />

Generating Profit from New Territories<br />

An exclusive event connecting leasing professionals and retailers for<br />

dealmaking and networking<br />

MEET<br />

with developers and retailers<br />

one-on-one to discuss leasing<br />

opportunities<br />

ICSC European Partners<br />

Silver Sponsor<br />

SHARE<br />

brands’ experiences of entering<br />

new markets from a retail,<br />

recruitment, legal and pricing<br />

perspective<br />

Featuring<br />

<strong>Retail</strong>er workshops to facilitate expansion into France,<br />

Germany, Poland and Russia<br />

DISCUSS<br />

the pros and cons of franchise<br />

versus brand ownership - how<br />

do brands determine which<br />

expansion route is best and why?<br />

<strong>Retail</strong>ers and<br />

tenants go<br />

FREE!<br />

TO REGISTER PLEASE GO TO: WWW.ICSC.ORG/2013EOS OR CALL +44 20 7976 3100


glObal briEfS<br />

(Continued from page 16)<br />

The 160,000-sf center has also been<br />

granted outline planning consent for<br />

phase 2, which will add a cinema, supermarket,<br />

hotel, petrol station and other<br />

food and beverage units.<br />

GlOBAl NeWS<br />

n Stable International is moving<br />

forward on several projects. With ITG<br />

as its partner, Stable was to begin construction<br />

this spring on Fashion Outlet<br />

Leipzig in Brehna, Germany. The<br />

project will open in mid-2014.<br />

n Prada stores at two of McArthurGlen’s<br />

Designer Outlets in Italy<br />

expanded in December. The Barberino<br />

Designer Outlet unit has been refitted and<br />

expanded to 311 m 2 , and the Veneto unit<br />

has expanded to 536 m 2 . Prada operates<br />

stores in six MCG outlet centers.<br />

n Outlet Centres International’s Designer<br />

Outlets Wolfsburg in Germany<br />

had a positive 2012 with a 13 percent<br />

increase in attendance and a 17 percent<br />

increase in sales. The center welcomed<br />

a record 1.7 million visitors in 2012, 45<br />

percent of whom traveled more than 50<br />

km to do their outlet shopping. Stephan<br />

Schäfer, managing director of OCI<br />

said the center is ready for expansion.<br />

“A special focus in 2013 will be on the<br />

second construction phase,” he said, adding<br />

that it will be financed through a new<br />

investor, Europa Capital. The fund, a<br />

Rockefeller Group subsidiary, acquired<br />

a share in the center in 2012.<br />

n U.S.-based Horizon Group Properties<br />

says it is aggressively moving<br />

forward on Globe Outlet Changsha in<br />

Hunan Province, China. Following a<br />

12-month hiatus in construction when<br />

the Chinese government slowed home<br />

building, Nike and Adidas are now<br />

open in the 860,000-sf center. Horizon’s<br />

partner, Globe Outlets, has also opened<br />

six stores featuring some well-known<br />

luxury brands, including Dolce & Gabbana,<br />

Prada, Versace, Diesel, Guess<br />

and Zegna. The cinema will open this<br />

summer. “We are in discussions with a<br />

number of better quality international<br />

and U.S. brands about creating a retail<br />

presence at the center,” Horizon CEO<br />

Gary Skoien told IOJ. “We expect to<br />

be announcing some strong additions<br />

shortly. Skoien said his company is no<br />

longer pursuing a project in Guangzhou<br />

but “We are especially interested in doing<br />

something in Harbin and Fuzhou.” c<br />

18 INTeRNATIONAl OuTleT JOuRNAl SpriNg 2013<br />

Outlet Connections Plus:<br />

ICSC’s all-new outlet meeting<br />

THe MeeTiNG formerly known<br />

as the European Outlet Conference,<br />

formerly held each autumn, and<br />

formerly an educational meeting,<br />

has had a complete restyling with<br />

a new name, date and format.<br />

The all-new Outlet Connections<br />

Plus will be June 13-14 in Hamburg,<br />

at the Radisson Blu Hamburg<br />

Airport Hotel.<br />

The new format, with expanded<br />

exhibit space and time, emphasizes<br />

deal making and networking<br />

opportunities for leasing executives<br />

and retailers. The new format<br />

still retains the educational<br />

component of the previous conference<br />

in which industry experts<br />

share their information, insights<br />

and strategies. The event is much<br />

like ICSC’s successful <strong>Retail</strong><br />

Connections, but with that important<br />

Plus factor that the outlet<br />

community has supported for the<br />

past seven years. <strong>Retail</strong>ers will<br />

still attend for free.<br />

“Outlet expansion: Generating<br />

Profit from New Territories” is<br />

the theme of Outlet Connections<br />

Plus. The rich program features<br />

panels and discussions on franchisees<br />

versus parent companies;<br />

the Internet and social media;<br />

and the macro-economy’s impact<br />

on outlet retailing. Following the<br />

conference, attendees will visit<br />

McArthurGlen’s Designer Outlet<br />

Neumünster near Hamburg.<br />

The program planning committee<br />

for Outlet Connections<br />

Plus includes Giles Membrey,<br />

Rioja Developments (Conference<br />

Chair); Jamie Acheson, Henderson<br />

Global Investors; Anna Jones,<br />

Fashion House Group; Thomas<br />

Reichenauer, ROS <strong>Retail</strong> Outlet<br />

Shopping; Iestyn Roberts,<br />

Freeport <strong>Retail</strong>; Bas Rutten, MAB<br />

Development; Sebastian Sommer,<br />

Neinver; and Pieter Van Voorst<br />

Vader, McArthurGlen.<br />

For more information on exhibiting,<br />

contact Sally Stephenson at<br />

sstephenson@icsc.org; for general<br />

information, contact Susan<br />

Richards at srichards@icsc.org.

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