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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?
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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.