Vigorous sales spur more outlet growth - Value Retail News
Vigorous sales spur more outlet growth - Value Retail News
Vigorous sales spur more outlet growth - Value Retail News
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COVER STORY<br />
<strong>Vigorous</strong> <strong>sales</strong><br />
<strong>spur</strong> <strong>more</strong> <strong>outlet</strong><br />
<strong>growth</strong><br />
Plus:<br />
Designer Outlet Naples opens<br />
Outlet center <strong>sales</strong> reported<br />
Interest in China intensifies<br />
Planned center updates<br />
Digital marketing tips<br />
And much, much <strong>more</strong>…<br />
AMI<br />
Opening<br />
La Reggia Designer Outlet, Naples
STYLISH SOLUTION<br />
FOR EXCESS STOCK<br />
More luxury brands than ever before<br />
are turning to McArthurGlen’s<br />
designer <strong>outlet</strong> villages for a stylish<br />
and profitable solution for excess<br />
stock. Our 19 villages across Europe<br />
showcase great brands to 75 million<br />
customers a year in thoughtfully<br />
designed environments.<br />
And there’s <strong>more</strong>.We have new<br />
<strong>outlet</strong>s under way in Hamburg and<br />
Athens, and we are expanding six<br />
of our existing centres near Naples,<br />
Venice, Rome, Florence, Düsseldorf,<br />
Berlin andVienna.<br />
To learn <strong>more</strong> about how we<br />
can help your business improve<br />
cashflow, contactVictor Busser<br />
on +44 (0)20 7535 2300 or<br />
v.busser@mcarthurglen.com.<br />
www.mcarthurglengroup.com<br />
ALBERTA FERRETTI<br />
ARMANI<br />
BALLANTYNE<br />
BALLY<br />
BLUMARINE<br />
BRIONI<br />
BULGARI<br />
BURBERRY<br />
CALVIN KLEIN<br />
COSTUME NATIONAL<br />
DOLCE & GABBANA<br />
ERMENEGILDO ZEGNA<br />
ESCADA<br />
ETRO<br />
FENDI<br />
GUCCI<br />
JIL<br />
SANDER<br />
KENZO<br />
LA PERLA<br />
MARNI<br />
MISSONI<br />
MONCLER<br />
MULBERRY<br />
NICOLE FARHI<br />
PAUL SMITH<br />
POLO RALPH LAUREN<br />
PRADA<br />
ROBERTO CAVALLI<br />
SERGIO ROSSI<br />
TAG HEUER<br />
TOMMY HILFIGER<br />
TRUSSARDI<br />
VALENTINO<br />
VERSACE
PAGE 4 PAGE 8<br />
PAGE 19<br />
STAFF<br />
PETER ShARPE<br />
ICSC ChaIrman<br />
International Outlet Journal is a publication for the<br />
non-U.S. factory <strong>outlet</strong> industry. Copyright © 2010<br />
In s I d e<br />
CONTENTS<br />
Vol. 6 No. 2 SPRING 2010<br />
MARCuS WIlD<br />
ICSC ChaIrman, EUrOPEan<br />
advISOry bOard<br />
MIChAEl P. KERChEVAl<br />
ICSC PrESIdEnt and CEO<br />
RuDOlPh E. MIlIAN, SCSM, SCMD<br />
ICSC SEnIOr vP<br />
ICSC EuROPE<br />
London, +44 20 7976 3100<br />
icsc.europe@icsc.org<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 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 />
4 Sales for 2009 are reported for European centers<br />
8 McArthurGlen’s fifth Italian project opens<br />
10 Sosnowiec a winner; two Turkish FOCs are<br />
short listed for awards<br />
12 Asia Report: Chinese FOCs aren’t Western<br />
clones<br />
13 Exclusive to IOJ: 27 existing and 14<br />
planned Chinese FOCs<br />
14 Chelsea Japan opens its eighth <strong>outlet</strong> center<br />
in Japan<br />
16 Progress on 10 phase 1 centers and four<br />
expansions<br />
18 <strong>News</strong> Notes: leasing news, management<br />
changes and <strong>more</strong>…<br />
20 Trade Report: ORDA calls for transparency<br />
22 Deborah Clark talks about digital marketing<br />
Advertiser Index<br />
Fashion house ..................................... bC<br />
Globe Outlets ........................................ 15<br />
Gva Outlets ............................................. 5<br />
henderson Global Investors ............... IbC<br />
mcarthurGlen ......................................IFC<br />
neinver ................................................. 11<br />
value retail ............................................ 7<br />
vrn-Global Outlet news ...................... 21<br />
SPRiNg 2010 INteRNatIONaL OutLet JOuRNaL 3
COvER STORy<br />
Outlet Center Sales<br />
<strong>Value</strong> <strong>Retail</strong>’s<br />
global approach<br />
builds <strong>sales</strong><br />
<strong>Value</strong> <strong>Retail</strong>’s marketing to international<br />
shoppers is paying off.<br />
For 2009 the developer’s nine <strong>outlet</strong><br />
villages in Europe welcomed <strong>more</strong> than<br />
25 million international visitors who<br />
helped produce a 52-percent increase in<br />
tax-refunded <strong>sales</strong> compared to 2008.<br />
Shoppers from Southeast Asia<br />
produced a 76-percent increase in<br />
tax-refunded <strong>sales</strong>, and shoppers from<br />
China nearly doubled their spending to a<br />
97-percent increase in tax refunds.<br />
Southeast Asians represent 9 percent<br />
of <strong>Value</strong> <strong>Retail</strong>’s tax-refunded <strong>sales</strong>, and<br />
Chinese visitors represent 24 percent<br />
of those <strong>sales</strong>. China is <strong>Value</strong> <strong>Retail</strong>’s<br />
fastest-growing non-EU market.<br />
Collectively, in Q4 2009 the Villages recorded<br />
an average spend per tax refunded<br />
transaction of €281. Brazilians purchase<br />
the most in the tax-refund category, with<br />
an average spend of €297 per transaction,<br />
an increase of 6 percent compared to Q4<br />
2008. Southeast Asians have an average<br />
spend of €243, up 4 percent from 2008.<br />
Dalton Park sees<br />
solid <strong>growth</strong><br />
ING’s Dalton Park ended 2009 on a<br />
high note with total <strong>sales</strong> for January to<br />
December up 8.5 percent, and comparative<br />
space <strong>sales</strong> up 8 percent. Spend per<br />
head was up by 4 percent, and footfall also<br />
increased by 4 percent (2.3 million through<br />
the door versus 2.2 million in 2008).<br />
Paul Donaghue, area manager for Marks<br />
& Spencer, says he is delighted with the<br />
performance of the Dalton Park unit.<br />
“The Marks & Spencer <strong>outlet</strong> store<br />
at Dalton Park delivered its best-ever<br />
Christmas trading and also broke quite a<br />
<strong>sales</strong> record on the way. Despite the current<br />
challenging economic environment,<br />
M&S <strong>outlet</strong> at Dalton Park delivered a<br />
vast like-for-like <strong>sales</strong> <strong>growth</strong>. We’ve also<br />
experienced a big increase in customer<br />
conversion and average spend values in<br />
the past 12 months.”<br />
4 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
ING’s seven-year-old Dalton Park <strong>outlet</strong> center in Murton, England saw healthy increases<br />
in both <strong>sales</strong> and footfall for 2009.<br />
The 160,000-sf center, which opened<br />
in 2003, is in Murton, England, 30 minutes<br />
from Newcastle.<br />
Land Securities sees<br />
7 percent holiday boost<br />
Two <strong>outlet</strong> properties in the UK, the<br />
320,000-sf Galleria in Hatfield and the<br />
324,030-sf Gunwharf Quays in Portsmouth,<br />
each saw a 7 percent increase in<br />
<strong>sales</strong> during the Christmas trading period.<br />
Both <strong>outlet</strong> centers are owned and<br />
managed by Land Securities and have<br />
continued to flourish despite the overall<br />
economy.<br />
Gunwharf Quays, which opened in<br />
2000, saw a 4.4 percent increase in footfall<br />
over Christmas compared with 2008,<br />
with many retailers reporting record <strong>sales</strong>.<br />
The Galleria, which opened in 1998,<br />
saw spend per head up 7 percent and<br />
leisure <strong>sales</strong> up <strong>more</strong> than 8 percent<br />
year-on-year for the fourth quarter.<br />
even bad weather<br />
doesn’t dampen<br />
Bideford <strong>sales</strong><br />
January trading figures for Atlantic<br />
Village in Bideford, England, were up 20<br />
percent compared to 2009. The 95,000sf<br />
center, owned by Development<br />
Securities PLC and leased by Realm, has<br />
been riding a crest of new openings and<br />
higher footfall. In 2009, Café Lily’s, M&S<br />
Outlet, Hush Puppies and Yeomans Outdoors<br />
opened in the center, and Cotton<br />
Traders increased its space to become its<br />
largest unit in the UK.<br />
Even a spell of bad weather in early<br />
January – which forced the 10-yearold<br />
center to close for almost two days<br />
-- didn’t significantly affect <strong>sales</strong>, says<br />
center manager Jane McLeod.<br />
“We’re bucking the trend with our retail<br />
performance,” she says. “We have seen<br />
a significant upturn in <strong>sales</strong>, especially on<br />
luggage, footwear and outdoor clothing<br />
ranges. With such a good start to the year<br />
we can only see it getting better. Obviously<br />
our trading success has not gone unnoticed<br />
… we already have a number of blue chip<br />
brands lined up to join us in 2010.”<br />
Kids clothes fly<br />
at McG centers<br />
McArthurGlen’s seven UK designer<br />
<strong>outlet</strong> centers enjoyed strong Christmas<br />
trading, despite suffering through the<br />
coldest winter in decades.<br />
From Nov. 30, 2009 to Jan. 3, 2010,<br />
<strong>sales</strong> increased 4 percent at McArthur-<br />
Glen’s seven centers compared to the same<br />
selling period last year. The real portfolio<br />
(Continued on page 6)
expertise<br />
Nobody knows Outlets better<br />
Current projects in:<br />
• Bulgaria • Czech Republic • Denmark • Germany<br />
• Hungary • Italy • Poland • Romania • Russia • Serbia<br />
• Slovenia • Spain • Switzerland • Ukraine<br />
For <strong>more</strong> information please contact:<br />
Brendon O’Reilly,<br />
Director, GVA Grimley Ltd.<br />
+44 (0)7831 381 405<br />
brendon.o’reilly@gvagrimley.co.uk<br />
www.gvagrimley.co.uk/<strong>outlet</strong>s
COvER STORy<br />
(Continued from page 4)<br />
hero was childrenswear. Sales jumped 63<br />
percent in that category as families looked<br />
to stretch their pound further.<br />
Boxing Day <strong>sales</strong> on Dec. 26, 2009<br />
were buoyant, as well, with Cheshire<br />
Oaks Designer Outlet near Chester<br />
experiencing an increase of <strong>more</strong> than<br />
20 percent compared to Boxing Day<br />
2008.<br />
The number of <strong>sales</strong> transactions for<br />
the period rose by 10 percent compared<br />
with the same period last year, and<br />
designer collections performed particularly<br />
well, with <strong>sales</strong> up 20 percent as<br />
Sunny skies have been shining on Park<br />
Avenue Fashion Outlet in Bilbao, Spain.<br />
The 200,000-sf <strong>outlet</strong> center produced<br />
a 12 percent increase in like-for-like <strong>sales</strong><br />
for 2009, and the scheme welcomed<br />
almost 3 million visitors last year, a 16<br />
percent increase compared to 2008.<br />
Park Avenue is a component of Megapark<br />
Barakaldo, which was acquired by<br />
Resolution Property in 2006 and is managed<br />
by Jones Lang LaSalle. Megapark is<br />
the largest retail and leisure destination in<br />
Spain. The project includes an 11-screen<br />
multiplex and IMAX cinema; 929,000 sf<br />
of big box retail and free covered parking<br />
with direct access to stores.<br />
Michel Nangia, senior manager at<br />
Resolution Property, attributes the<br />
growing success of the <strong>outlet</strong> center,<br />
which opened in 2007, to the company’s<br />
management style.<br />
“Our proactive, hands-on asset management<br />
approach has significantly helped us<br />
navigate what has been a tough time this<br />
past year,” he says, adding that Resolution’s<br />
attention to detail has been noticed and<br />
appreciated by the center tenants.<br />
For instance, Egoitz Barturen, store<br />
manager at Puma says, “Although we<br />
have been trading in the center for only<br />
14 months, the results regarding footfall,<br />
capture rate and <strong>sales</strong> could not be any better.<br />
Our 2009 was superb, and the forecast<br />
for 2010 has the same positive trend not<br />
only for our chain, but for the whole <strong>outlet</strong><br />
center here at the Megapark.”<br />
Javier Anton, coordinator of GEOX in<br />
Northern Spain, says his productivity expectations<br />
have been exceeded. “Our 2009<br />
6 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
shoppers embraced party attire. Overall,<br />
holiday footfall rose by 1.5 percent.<br />
McArthurGlen Designer Outlets are<br />
located in Ashford, Bridgend, Chester,<br />
Livingston, East Midlands, Swindon and<br />
York.<br />
Sales, footfall<br />
soar for Neinver<br />
Neinver, the second largest operator<br />
in Europe (after Henderson Global Outlet<br />
Mall Fund), has posted a 28 percent<br />
increase in turnover for 2009 compared<br />
with 2008. Additionally, footfall at Nein-<br />
Anatomy of an Increase:<br />
Park Avenue’s success based on data and teamwork<br />
results have been very positive, exceeding<br />
expectations, and quite impressive, considering<br />
the generalized and negative situation<br />
of retailers in this economy.”<br />
One tool Resolution has used to help<br />
retailers increase their <strong>sales</strong> has been the<br />
simple employment of traffic counters.<br />
“We installed bespoke counters<br />
[supplied by PFM] at the entrance of<br />
the center and in every store,” Nangia<br />
explains. “All of our retailers provide us<br />
with their turnover figures, and when<br />
combined with the footfall flow into<br />
their stores, we’re able to calculate the<br />
<strong>sales</strong> conversion rate.<br />
“This information is entered into<br />
PFM’s website, which then provides us<br />
with a weekly report with key perfor-<br />
ver’s 11 <strong>outlet</strong> centers in Italy, Germany,<br />
Spain, Poland and Portugal increased by<br />
11 percent to 30 million visitors compared<br />
to 27 million in 2008.<br />
“The good results registered in 2009<br />
show that the <strong>outlet</strong> concept continues<br />
to strengthen in Europe as one of the<br />
retail concepts that consumers like best,”<br />
says CEO Manuel Lagares. “We’ve seen<br />
this sector’s appeal gradually intensify for<br />
the last two years.”<br />
Neinver also manages the Irus European<br />
<strong>Retail</strong> Property Fund, which focuses<br />
on the acquisition of <strong>outlet</strong> centers and<br />
other retail assets across Europe. c<br />
Resolution Property attributes the success of Park Avenue, a component of the<br />
Megapark Barakaldo in Bilbao, Spain, to the company’s hands-on management and use of<br />
technology to help drive <strong>sales</strong> and footfall.<br />
mance indicators. The report highlights<br />
the key strengths at the center and alerts<br />
us to any problems at an early stage,<br />
enabling us to work closely with our retailers<br />
to assist them in improving their<br />
<strong>sales</strong> conversion rates.”<br />
The center management team frequently<br />
meets with tenants, he says, working<br />
with chains to drive <strong>sales</strong> through marketing<br />
support, signage and other initiatives.<br />
Park Avenue’s catchment within a<br />
90-minute drive is 3.5 million people, including<br />
<strong>more</strong> than 1 million living within<br />
15 minutes of the project. The average<br />
household income for the market is 28<br />
percent higher than the national average.<br />
The market’s average household spend<br />
on retail goods is €11,616. c
NaPlES<br />
mcarthurGlen goes neapolitan<br />
with La reggia designer Outlet<br />
la Reggia Designer Outlet’s architecture reflects the Rococo style of the Royal Palace,<br />
La Reggia di Caserta, built by the Bourbon kings, as well as the Mediterranean styles<br />
and Byzantine domes seen on the nearby Amalfi Coast.<br />
8 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
The center also has<br />
an impressive solar<br />
system to handle<br />
its energy demands.<br />
by linda humphers<br />
Editor in Chief<br />
More than 100,000 people who<br />
attended the February opening<br />
of McArthurGlen’s fifth designer<br />
center in Italy demonstrated that<br />
Italians are anything but blasé about the<br />
<strong>outlet</strong> concept. And they’re certainly<br />
not blasé about how McArthurGlen<br />
defines <strong>outlet</strong> retailing.<br />
La Reggia Designer Outlet is in Marcianise,<br />
near Caserta in the Campania<br />
region, 30 km north of Naples. Mount<br />
Vesuvius bides her time in the background;<br />
a gazillion pizzerias keep the 5.5<br />
million people living within 90 minutes of<br />
the center well fed, and the Naples airport<br />
is just 20 minutes away. Besides being<br />
Italy’s most populous region, Campania<br />
is also a popular destination, attracting 21<br />
million tourists each year, who are lured<br />
by the Amalfi Coast, Sorrento, and the<br />
islands of Capri and Ischia, as well as the<br />
historic remains of Pompeii.<br />
The 17,500-m 2 phase 1 opened 80<br />
percent leased with strong fashion brands<br />
and a selection of cafes and restaurants,<br />
including well-known local names. Among<br />
those brands to open in the first phase<br />
are Blumarine, Calvin Klein, Gianfranco<br />
Ferré, Hugo Boss, Liu Jo, Patrizia Pepe,<br />
Pinko, Pollini, Replay and Valentino.<br />
The 9,000-m 2 phase 2 is already<br />
under way, with the first half opening<br />
later this year and the second half in the<br />
second quarter of 2011. The center will<br />
have 140 stores when completed.<br />
Campania is the most densely populated<br />
region in Italy, with 5.5 million<br />
inhabitants living within a 90-minute<br />
drive of the center.<br />
La Reggia Designer Outlet, which is<br />
McArthurGlen’s 19th designer out
let village in Europe, includes one of<br />
Europe’s biggest solar energy projects<br />
in a retail scheme, with 2,700 m 2 of<br />
solar panels integrated into the roof.<br />
The panels will produce sufficient solar<br />
power to satisfy 30 percent of the centre’s<br />
energy demands.<br />
McArthurGlen chairman J.W. Kaempfer<br />
says, “It is with great pride that<br />
we open our fifth designer <strong>outlet</strong> in<br />
a country which is home to so many<br />
famous international fashion brands and<br />
which is also one of the top countries in<br />
the world for tourism.”<br />
Jacopo Mazzei, CEO and President of<br />
RDM-Gruppo Fingen, McArthurGlen’s<br />
joint venture partner in Italy, says: “This is<br />
the fifth center we have developed jointly<br />
with McArthurGlen since we opened<br />
Italy’s first designer <strong>outlet</strong> in Serravalle in<br />
2000, and which has now become Europe’s<br />
largest designer <strong>outlet</strong>. Campania<br />
is an ideal location, given the size of the<br />
catchment, the importance of the region’s<br />
tourism, and the center’s location adjacent<br />
to the Naples-Rome motorway.”<br />
McArthurGlen’s other designer <strong>outlet</strong><br />
villages in Italy are Serravalle Designer<br />
Outlet near Milan; Castel Romano Designer<br />
Outlet near Rome; Barberino Designer<br />
Outlet near Florence; and Veneto<br />
Designer Outlet near Venice. The five<br />
Italian centers will total 150,000 m 2<br />
once La Reggia is completed. c<br />
A good selection of cafes and restaurants, many opened by local celebrity chefs, is an<br />
important element at McArthurGlen’s La Reggia Designer Outlet.<br />
lA REGGIA DESIGNER OuTlETS TENANT lIST<br />
Amina Rubinacci<br />
Aspesi<br />
Baci & Abbracci Factory<br />
Store<br />
Bagatelle<br />
Baldinini<br />
Ballantyne<br />
Bialetti Industrie<br />
Bikkembergs<br />
Blumarine<br />
Bric’s<br />
Brooksfield<br />
Calvin Klein Collection<br />
Calvin Klein Jeans<br />
Calvin Klein Underwear<br />
Calzedonia – Intimissimi –<br />
Tezenis<br />
Camper<br />
Celyn B – Elisabetta Franchi<br />
Cerruti 1881<br />
Corso Roma<br />
Cotton Belt<br />
David Mayer Namen<br />
Desiree<br />
Diesel<br />
Dixie<br />
Escada<br />
Fabi<br />
Ferre<br />
Ferre Freddy<br />
Gas<br />
Gattinoni<br />
Golden Lady<br />
Guess<br />
Gutteridge<br />
Hangar Eighteen<br />
Harmont & Blaine<br />
Il Gufo<br />
Kathy Van Zeeland<br />
Levi’s<br />
Lui-Jo<br />
Luisa Spagnoli<br />
Massimo Rebecchi<br />
Maui Bear<br />
Merrell<br />
Modus Beauty Store<br />
Motostore<br />
Nannini<br />
Napapuri<br />
Nautica<br />
Parah<br />
Patrizia Pepe Firenze<br />
Pinko<br />
Piquadro<br />
Pirelli<br />
Pollini<br />
Pupa<br />
RCR<br />
Replay<br />
Rifle<br />
Tailor Club<br />
The End<br />
Timberland<br />
Tommy Hilfiger<br />
Tosca Blu<br />
Valentino<br />
VFG – Valentino Factory<br />
Store<br />
Watch & See<br />
Yamamay<br />
SPRiNg 2010 INteRNatIONaL OutLet JOuRNaL 9
aWaRDS<br />
FOCs are finalists For iCSC awards<br />
Two <strong>outlet</strong> centers in Turkey are<br />
among the finalists in ICSC’s<br />
2010 European Shopping<br />
Centre Awards. The 2010 awards<br />
will be presented at the 35th ICSC<br />
European Conference, 28-29 April<br />
2010 in Prague, The Czech Republic.<br />
In total, 19 of 32 entries made it onto<br />
the short list. The categories are:<br />
l small new centers (less than 30,000 m 2 )<br />
l medium new centers (30,000 – 45,000 m 2 )<br />
l large new centers (45,000 – 80,000 m 2 )<br />
l very large centers (Over 80,000 m 2 )<br />
l refurbishments and extensions<br />
l and specialized centers.<br />
The Turkish <strong>outlet</strong> projects, both in<br />
Istanbul, were nominated in the specialized<br />
category.<br />
The 44,149-m 2 Optimum Outlet has<br />
157 stores and is located in the rapidly<br />
developing Anatolian side of Istanbul.<br />
Renaissance Development owns the<br />
center, which opened in 2008.<br />
Bayraktar Group’s 106,000-m 2 Via<br />
Port Outlet Shopping, which opened<br />
in 2008, has 183 stores throughout its<br />
open design concept. c<br />
FH Sosnowiec wins CEE honors<br />
Fashion house Outlet Centre Sosnowiec opened in Poland in 2008, and it’s awardwinning<br />
expansion opened in 2009.<br />
10 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
Renaissance Development’s Optimum Outlet is on the rapidly developing Anatolian<br />
side of Istanbul.<br />
bayraktar Group’s Via Port Outlet Shopping is a marvel of shopping and dining in an<br />
open-air setting with nearly 200 shops and cafes.<br />
Fashion house Outlet Centre<br />
Sosnowiec Phase 3 has been<br />
named Factory Outlet of the Year<br />
by EuropaProperty magazine’s CEE <strong>Retail</strong><br />
Real Estate Awards.<br />
Fashion House Outlet Centre Gdansk<br />
Phase 2 and Designer Outlet Center<br />
Salzburg were short-listed for the award.<br />
The Fashion House centers, both in Poland,<br />
are owned by Polonia Property Funds<br />
and were developed by Fashion House,<br />
which continues to manage and lease them.<br />
MacArthurGlen is the developer of the<br />
Salzburg center, a redevelopment project<br />
that opened in Austria in September 2009.<br />
The awards, now in their second year,<br />
honor retailing in Central and Eastern<br />
Europe in 27 categories. c
aSia<br />
Chinese <strong>outlet</strong> centers<br />
aren’t Western clones<br />
by linda humphers<br />
Editor in Chief<br />
At least three U.S.-based companies<br />
are providing <strong>outlet</strong> expertise<br />
and consulting – up to a<br />
point – to Chinese developers planning<br />
to open <strong>outlet</strong> centers in the People’s<br />
Republic. The U.S. companies are:<br />
l Chicago-based Urban <strong>Retail</strong> Properties,<br />
through its Urban <strong>Retail</strong> Asia office<br />
and assisted by <strong>outlet</strong> veteran Ron Simkin,<br />
is consulting with Shanghai Textile<br />
on a project scheduled to open in 2011<br />
l Leto Consulting, whose principals<br />
include Peter Leckerling and <strong>outlet</strong> veteran<br />
Phil Palisoul, is providing planning,<br />
leasing and management consulting to<br />
two Chinese developers<br />
l Horizon Group Properties, which<br />
operates five U.S. <strong>outlet</strong> centers, is working<br />
with a Chinese developer to open as<br />
many as eight <strong>outlet</strong> projects.<br />
According to Peter Leckerling, managing<br />
director of Leto Consulting, the<br />
global economic crisis has had little effect<br />
on development in many Chinese provinces.<br />
Taking the lead from the central<br />
government in Beijing, which in November<br />
of 2008 announced a €430 billion<br />
stimulus package, government officials<br />
are encouraging developers to increase<br />
the pace of <strong>outlet</strong> development.<br />
“As the <strong>outlet</strong> model isn’t urban,”<br />
Leckerling explains, “<strong>outlet</strong> centers can<br />
be built on many non-urban plots that<br />
the government has released for public<br />
auction. This is enticing since China’s<br />
urban land is often overpriced and<br />
always overcrowded.”<br />
Leckerling adds that most Chinese<br />
<strong>outlet</strong> centers don’t embrace the <strong>outlet</strong>village<br />
footprint used in the U.S. and European<br />
Union countries. Instead, Chinese<br />
<strong>outlet</strong> centers are usually large buildings<br />
subdivided into numerous squares, typically<br />
ranging from 300 sf to 500 sf.<br />
Further<strong>more</strong>, the tenants are primarily<br />
either developer-owned stores filled<br />
with goods bought at wholesale, or<br />
12 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
Shanghai Textile is redeveloping<br />
12 buildings in the Yangpu section of<br />
Shanghai, China’s second-largest city.<br />
The <strong>outlet</strong> center will be in a 36,000-m 2<br />
structure on the site.<br />
shops run by local franchisees who<br />
pay percentage rent only.<br />
There are exceptions, of course. The<br />
tenants at Shanghai Outlets in Qingpu<br />
are legitimate national franchisees of international<br />
brands such as Nike, Adidas,<br />
Zegna, Esprit, Nine West, Hugo Boss,<br />
Benetton and others.<br />
“But many brands realize that customers<br />
in secondary cities don’t have<br />
the purchasing power to make an <strong>outlet</strong><br />
store profitable,” Leckerling says. “So<br />
these non-traditional <strong>outlet</strong>s have allowed<br />
development to move forward in<br />
the secondary markets.”<br />
China’s unique approach to development<br />
and tenanting is initially daunting<br />
to Westerners, even those who’ve been<br />
in the <strong>outlet</strong> business for a long time.<br />
Gary Skoien, CEO of Horizon Group<br />
Properties told IOJ that he first started<br />
looking at China on his own, without<br />
a partner. “Then I realized that I could<br />
spend the rest of my life trying to figure<br />
it out,” he says.<br />
Horizon formed a partnership in February<br />
with a publicly traded real estate firm<br />
that specializes in commercial and residential<br />
development. Three unnamed sites are<br />
currently under control and five additional<br />
sites are under study, Skoien says.<br />
In contrast with Horizon Group,<br />
Urban <strong>Retail</strong> has been doing business<br />
in China for several years. The partnership<br />
with Shanghai Textile Company will<br />
result in the redevelopment of a centuryold<br />
factory into Shanghai Fashion Center.<br />
The <strong>outlet</strong>-retail portion of the project<br />
is one of six elements in the complex,<br />
the others being food and beverage, a<br />
theater, a VIP club, office space and a<br />
hotel. The site, in the Yangpu district,<br />
has 12 buildings, and the <strong>outlet</strong>s will be<br />
in a three-level, 36,000-m 2 structure.<br />
The developer’s main hope is that the<br />
center will be a catalyst for returning<br />
Shanghai to its former status as a global
fashion capital.<br />
According to Scott Chen, CEO for<br />
Urban <strong>Retail</strong> Asia, leasing is progressing<br />
well. “We are in active negotiations with<br />
a wide range of prospective tenants,<br />
such as Dior, Celine, Burberry, Coach<br />
and lots of other brands.”<br />
Leto Consulting has been working<br />
since 2009 with CRED Real Estate<br />
Group to develop one of Shanghai’s<br />
first suburban regional projects, the<br />
65,000-m 2 Trendworld Mall. About 55<br />
percent of the GLA will be a mix of<br />
traditional retail and <strong>outlet</strong> stores.<br />
The reason for the mix, Leckerling<br />
says, is “our research showed that the<br />
local customer’s purchasing power is<br />
<strong>more</strong> in line with factory <strong>outlet</strong> pricepoints.<br />
In this way, international brands<br />
are still be able to tap into a very strong<br />
Outlet Centers in China<br />
27 existing <strong>outlet</strong> projects, 11 planned to open within 2 years (listed by opening date)<br />
name of mall m2 of GLa, GS or Land Opening date Location developer<br />
beijing Yansha Outlets 19,832 m2 GLa 2002 beijing yansha<br />
Shanghai Qingpu Outlets 110,000 m2 GS 2006 Shanghai bailian<br />
harbin Yansha Outlets 32,000 m2 GLa 2006 harbin, heilongjiang yansha<br />
Foxtown 68,000 m2 GS 2006 Shanghai Studio Silvio tarchini<br />
Guangzhou Teemal ThC 18,000 m2 GS 2006 Guangzhou, Guangdong<br />
Suzhou CS heshun Outlets 50,000 m2 GLa 2007 Suzhou, Jiangsu CSLand<br />
Chengdu MGS Outlets 50,000 m2 Land 2007 Chengdu, Sichuan mGS<br />
Shangjie Yaxing Outlets 40,000 m2 GLa 2007 Zhengzhou, henan yaxing<br />
Zhangjiagang hong Kong City Outlets 30,000 m2 GLa 2007 Zhangjiagang, Jiangsu<br />
Aika Outlets 15,000 m2 GS 2008 beijing aika<br />
Kosmall 13,000 m2 GS 2008 hefei, anhui Kosmall<br />
West Outlets 80,000 m2 GS 2008 Chongqing taiwan Pacific Group<br />
Zhengzhou Yaxing Outlets 60,000 m2 GLa 2008 Zhengzhou, henan yaxing<br />
hangzhou EX Outlets 8,000 m2 GLa 2008 hangzhou, Zhejiang<br />
Chongqing Windsor Outlets 33,000 m2 GS 2009 Chongqing CGr<br />
Changchun Eurasia Outlets 25,000 m2 GS 2009 Changchun, Jilin Eurasia Group<br />
Energetic Orient brand Discount Shopping Plaza 68,000 m2 GS 2009 beijing Oriental Foundation<br />
Zhengzhou Kingcity Outlets 30,000 m2 GLa 2009 Zhengzhou, henan Powerlong<br />
beijing Scitech Premium Outlet Mall 150,000 m2 GS 2009 beijing Scitech<br />
Meilanhu Outlets 70,000 m2 GS 2009 Shanghai<br />
Jiangsu Wanhe Outlets Park 600,000 m2 GS 2009 Changzhou, Jiangsu<br />
Shanghai Fashion Center Global Outlets Park 120,000 m2 GS 2009 Shanghai<br />
Chengdu Times Outlet 44,000 m2 GS 2009 Chengdu, Sichuan Wharf holdings<br />
Tongxiang hong Kong City Outlets 60,000 m2 GS 2010 tongxiang, Zhejiang houyuan<br />
Qingdao Kingcity Outlets 38,000 m2 GS 2010 Qingdao, Shandong Powerlong<br />
Ningbo Outlets 2010 ningbo, Zhejiang Zhejiang Power<br />
Nantong Outlets 30,000 m2 GLa 2010 nantong, Jiangsu Xintonghai<br />
*PlANNED OuTlET PROJECTS IN ChINA<br />
Outlet China - South China Flagship Center 652,915 m2 Land 2010 Foshan, Guangdong Outlets China Ltd<br />
Outlet China - East China Flagship Center 1,300,000 m2 Land 2010 huzhou, Zhejiang Outlets China Ltd<br />
Changsha Outlets 160,000 m2 GLa 2010 Changsha, hunan richly Field<br />
Tianjin Florence Town Outlets 400,000 m2 Land 2010 tianjin Waitex<br />
Changshu Outlets 84,000 m2 GS 2010 Changshu, Jiangsu Zhongtai<br />
haining Outlets 75,000 m2 GLa 2011 haining, Zhejiang bailian<br />
haixi Outlets 2,000,000 m2 Land 2011 Fuzhou, Fujian richly Field<br />
Ningbo Outlets Project NTD 110,000 m2 Land 2011 ningbo, Zhejiang Shanshan, mitsui, Itochu<br />
Jiangyin Outlets 2011 Jiangyin, Jiangsu<br />
consumer market.”<br />
Leto is also working with a development<br />
group in Ningbo’s Fenghua town,<br />
the ancestral home of Chiang Kai-shek,<br />
near the beautiful Tingxia Lake.<br />
“The project will be called an <strong>outlet</strong><br />
center,” Leckerling says, “but the model<br />
is <strong>more</strong> Chinese, with substantial food,<br />
beverage and entertainment options<br />
included.” c<br />
Shanghai Fashion Outlets 36,000 m2 GLa 2011 Shanghai Shanghai textile Company<br />
Wealth Outlets 13,000 m2 GS planned nanchang, Jiangxi hongkelong<br />
*horizon Group Properties’ eight sites aren’t listed as no details were available by press time.<br />
Source: Information for this chart comes to IOJ courtesy of yiqun Wang, who is an intern in the research department at ICSC in new york. his family’s business,<br />
Zaihang, offers retail consulting services to developers in China and was a partner on a planned <strong>outlet</strong> center in ningbo.<br />
SPRiNg 2010 INteRNatIONaL OutLet JOuRNaL 13
aSia<br />
Chelsea Japan opens<br />
ami Premium Outlets<br />
The center is the<br />
developer’s eighth<br />
<strong>outlet</strong> center to<br />
open in nine years.<br />
Simon Property Group has<br />
decided to skip developing retail<br />
centers in China, at least for now,<br />
but its subsidiary, Chelsea Japan, continues<br />
making strides in Japan.<br />
In July 2009, Chelsea Japan opened<br />
Ami Premium Outlets, its eighth <strong>outlet</strong><br />
center in Japan. CJ is a joint venture<br />
of Simon Property Group (40 percent<br />
ownership) and Mitsubishi Estate Co.,<br />
Ltd. (60 percent ownership).<br />
Ami Premium Outlets opened on a<br />
bright day and was greeted, as usual,<br />
by thousands of Japanese shoppers<br />
eagerly waiting for speeches to end<br />
and ribbons to be cut so they could<br />
begin shopping. Videos on YouTube<br />
tell the tale.<br />
The center’s 225,000-sf phase 1<br />
opened fully leased with 100 tenants,<br />
including Adidas, Diesel, Fauchon,<br />
Lanvin en Bleu, Mayson Grey, Ray Ban,<br />
True Religion and Viaggio Blue. Additional<br />
phases could bring the center to<br />
a 360,000-sf build-out.<br />
Ami Premium Outlets is in Ibaraki<br />
Prefecture, about 35 miles or a 50-minute<br />
drive northeast of central Tokyo. The<br />
41-acre site lies near the Ami-Higashi<br />
interchange on the Ken-O Expressway<br />
(Metropolitan Inter-City Expressway), 11<br />
miles from Tsukuba and 20 miles from<br />
Narita International Airport.<br />
About 11 million people live within a<br />
30-mile radius of Ami.<br />
Chelsea Japan’s 2.1 million-sf portfolio<br />
includes Gotemba Premium Outlets<br />
and Sano Premium Outlets (both serving<br />
Tokyo); Rinku Premium Outlets<br />
(Osaka); Kobe-Sanda Premium Outlets<br />
(Kobe-Osaka); Sendai-Izumi Premium<br />
Outlets (Sendai); Toki Premium<br />
Outlets (Nagoya) and Tosu Premium<br />
Outlets (Fukuoka). c<br />
14 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
Chelsea Japan’s 225,000-sf Ami Premium Outlets opened fully leased with 100 tenants.<br />
AMI PREMIuM OuTlET TENANT lIST<br />
Ace<br />
Adidas<br />
Asics<br />
Barclay<br />
BCBG Maxazria<br />
Beams<br />
Billabong<br />
Brooks Brothers<br />
Castelbajac<br />
Ciaopanic<br />
Citizen<br />
Coach<br />
Cole Haan<br />
Combi<br />
Crazy Crepes<br />
Cricket<br />
Delifrance<br />
Diesel<br />
Dou Dou<br />
Edwin<br />
Elle Paris<br />
Energie<br />
Enoteca D’oro Premio<br />
Fauchon<br />
Fossil<br />
Fukuske<br />
Gap<br />
Global Work<br />
Gotcha<br />
Hakka<br />
Hawkins<br />
Hush Puppies<br />
Jayro<br />
Jin’s<br />
Journal Standard<br />
Junmen<br />
Kaneki<br />
Katharine Hamnett<br />
Keawjai<br />
Kihachi Soft Cream<br />
Kim Kim Jang<br />
Kobe Motomachi Doria<br />
Lafuma<br />
Lanvin en Bleu<br />
Laundry<br />
Lego<br />
Lowrys Farm<br />
Madras<br />
Marithé François Girbaud<br />
Max & Co.<br />
Mayson Grey<br />
McGregor<br />
Michel Klein<br />
Millet<br />
Miss Sixty<br />
Mitsumine<br />
Miyatake Sanuki Seimensho<br />
MK Michel Klein Homme<br />
Moussy<br />
Nara Camicie<br />
New Yorker<br />
Nice Claup<br />
Nine West<br />
Off & On<br />
Op<br />
OshKosh B’Gosh<br />
Override<br />
Pageboy<br />
Pal Zileri<br />
Plaza<br />
Ra-men Ichiya<br />
Ray Cassin<br />
Ray-Ban<br />
Rienda<br />
Rockport<br />
Rodeo Crowns<br />
Ru OlOl<br />
Sally Scott<br />
Sandaya Honten<br />
Schiatti<br />
Seiko<br />
Sly<br />
Spick and Span<br />
St. Cousair<br />
Sylvanian Families<br />
Tachikichi<br />
Taylormade<br />
T-fal<br />
TGM<br />
Tommy Hilfiger<br />
Topkapi<br />
Triumph<br />
True Religion Brand Jeans<br />
Tsumori Chisato<br />
Tully’s Coffee<br />
Under Armour<br />
Union Station<br />
Urban Research<br />
Vans<br />
Vérité<br />
Viaggio Blu<br />
Vicky<br />
Visaruno OlOl<br />
W Closet
PlaNNED CENTERS UPDaTE<br />
Neinver developing<br />
Six phase 1 projects<br />
NEINVER IS GOING to be busy for the<br />
next two years developing one center<br />
in Spain, one center in Portugal, two in<br />
France and two in Poland. The Spanish<br />
developer will also be expanding four<br />
existing centers. By the end of 2012,<br />
AS OF MID-FEbRuARY, Norwegian<br />
Outlet Center was 90 percent leased<br />
and well on its way to a June opening.<br />
Located in Vestby, the 118,400-sf<br />
planned center is 25 minutes from<br />
the Oslo city center and nine minutes<br />
from Tusenfryd, Norway’s largest<br />
amusement park. The center is<br />
on the E6, within an hour’s drive of<br />
35 percent of Norway’s population.<br />
Developer of the project is<br />
Norwegian Outlet, whose principal is<br />
°<br />
Adne Sondral, ° an Olympic medalist in<br />
the 1,500-meter speed skating event.<br />
He won the gold<br />
medal in 1998 at<br />
Nagano and the silver<br />
medal in 1992 in<br />
Albertville. During<br />
the2010Olympicsin<br />
°<br />
Vancouver, Sondral<br />
was a speed skating<br />
commentator<br />
for a Norwegian<br />
sportscast.<br />
IOJ caught up<br />
°<br />
with Sondral dur-<br />
ing the 2010<br />
Winter Olympics in<br />
February to ask the<br />
burning question,<br />
“Which is harder,<br />
winning an Olympic<br />
medal or opening<br />
an <strong>outlet</strong> center?”<br />
16 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
Neinver will manage 354,400 m 2 of <strong>outlet</strong><br />
GLA in six European countries.<br />
The 12,600-m 2 first phase of Factory<br />
La Coruña in the province of Galicia,<br />
in northwestern Spain, will open during<br />
the 4th quarter of 2010. The center,<br />
which is just 2 km from the airport and<br />
9 km from Coruña, will be Neinver’s<br />
fifth in Spain. Neinver plans a second<br />
Norwegian Outlet is<br />
Olympian’s next goal<br />
when I really want something I give it<br />
everything I have. I did so with skating<br />
and I am doing so in setting up<br />
Norwegian Outlet. It has been challenging<br />
at times with financial crises<br />
and regulatory problems, but skating<br />
had other challenges.<br />
“In my experience if you really want<br />
something, you will make it happen.<br />
Norwegian Outlet seems to be one of<br />
the <strong>more</strong> successful <strong>outlet</strong> endeavors<br />
in Europe, considering that it’s <strong>more</strong><br />
than 90 percent leased four months<br />
before the opening. But we still have<br />
to work hard to<br />
drive revenue and<br />
to make our tenants<br />
as profitable<br />
as possible. I have<br />
always needed<br />
clear goals in life.<br />
Right now, the success<br />
of Norwegian<br />
Outlet is my Olympic<br />
medal.”<br />
Signed tenants<br />
include Abecita,<br />
Arts & Crafts,<br />
Bergans, Bjorn<br />
Borg, Coast, Karen<br />
Miller, Columbia,<br />
°<br />
°<br />
Adne Sondral, who is developing Doite, Follestad,<br />
Norwegian Outlets, won the 1998 Gant, Helly Hansen,<br />
Olympic gold medal in speed skating House of Brands,<br />
in Nagano, Japan.<br />
Hoyer, Hugo Boss,<br />
“Winning the Olympics was my big IC Companys, Josef Seibel, Le Creuset,<br />
dream since I was a small child,” Levis,Lillevinkel,Mexx,MXDC,NoaNoa,<br />
° Sondral says. “I had to work hard Norrona, Peak Performance, Polarn<br />
for 20 years to reach that goal. It’s o Prylet, Puma, QuickSilver, Read,<br />
possible to build an <strong>outlet</strong> village SamsoeSamsoe, SEB, Timberland,<br />
within a shorter period of time. But Tommy Hilfiger, Triumph and Vans. c<br />
phase of 8,900 m 2 as well.<br />
In France, Neinver is developing in<br />
partnership with MAB Development<br />
the 18,000-m 2 Honfleur The Style<br />
Outlets. The site is on the western coast<br />
of Normandy, near the beach at Pont<br />
de Normandie. The center will open in<br />
spring 2011.<br />
Also in France, Roppenheim The<br />
Style Outlets is scheduled to open during<br />
the 4th quarter 2011. The 25,500-m 2<br />
scheme is in the Alsace region of northeast<br />
France, next to the French-German<br />
border, 46 km north of Strasbourg.<br />
Neinver’s development partner MAB<br />
acquired the site in October from Freeport,<br />
which had pre-let <strong>more</strong> than 30<br />
percent of the space.<br />
In Portugal, Algarve The Style Outlets<br />
is scheduled to open in 2012. The<br />
23,000-m 2 center, which will be Neinver’s<br />
second in Portugal, is near Faro,<br />
famous for its beaches, flamingoes and<br />
high influx of visitors.<br />
In Poland, Neinver will open Factory<br />
Krakow and Factory Warsaw, both<br />
36,000 m 2 .<br />
Neinver will add 14,000 m 2 to Vila<br />
do Conde in Portugal; 4,400 m 2 to<br />
Zweibrücken in Germany; 3,800 m 2 to<br />
Vicolungo in Italy; and 3,000 m 2 to Factory<br />
Sevilla Aeropuerto in Spain.<br />
local community<br />
gets preview of<br />
Soltau Outlet<br />
GVA OuTlETS and Mutschler Development<br />
Group got a positive response from<br />
the community at a recent preview outlining<br />
the plans for the 10,000-m 2 Soltau<br />
Outlet set to open in 2011 in Germany.<br />
The preview included an accounting<br />
of the center’s design and prospective<br />
tenants, plus the impact the scheme will<br />
have on the area’s employment, revenue<br />
and tourism. In the audience were local<br />
government officials, the mayor and key<br />
councilors, business owners and tourism<br />
representatives.<br />
The center site is in the Luneburger<br />
Heide region near the cities of Hamburg,<br />
Bremen and Hanover. It is across<br />
from Heide-Park, one of the largest<br />
theme parks in northern Germany, and<br />
along the A7 motorway, accessible to the<br />
area’s 2 million annual visitors.
“The key factor here is that this is a<br />
new retail concept for the area,” says<br />
Brendon O’Reilly, director of GVA<br />
Outlets, “so it is important that everyone<br />
understand the concept and how<br />
it works. It is also important that the<br />
benefits are explained and misguided<br />
fears are laid to rest, as there is always<br />
confusion between out-of-town retail<br />
parks and <strong>outlet</strong> centers, which operate<br />
in a very different way.<br />
“The community now understands<br />
and is delighted that we are coming.<br />
Considering how difficult planning permission<br />
can be for <strong>outlet</strong>s in Germany,<br />
this support is a real achievement.”<br />
Ferrara FOC plans<br />
November opening<br />
A NOVEMbER opening is planned for<br />
Costruzioni Generali Italia’s Occhiobello<br />
Outlet Village. The 12,800-m 2 center<br />
will be home to 74 tenants, predominately<br />
Italian and French brands.<br />
OOV is in the town of Occhiobello,<br />
between Veneto and Emilia Romagna.<br />
The site will serve two of the provinces<br />
with the highest per capita disposable<br />
income in Italy, 20 minutes from<br />
Rovigo and five minutes from Ferrara.<br />
The catchment includes some 3 million<br />
people residing in Padua, Bologna and<br />
Venice. The site, on A13 Padua-Bologna<br />
Highway, has full planning approvals.<br />
In Cannes in November, Francesco<br />
Bordignon, of consultant Kboard, said<br />
the scheme was 45 percent leased.<br />
“The demographics of the area are<br />
<strong>more</strong> like Northern Europe,” he told<br />
IOJ. “It’s not like Southern Italy.”<br />
ING to expand<br />
Dalton Park<br />
ChIlDRENSWEAR retailer Designer<br />
Kidz opened earlier this year at ING<br />
Real Estate’s Dalton Park in Murton,<br />
England.<br />
But the big news at the 160,000-sf<br />
center is that planning has begun for a<br />
€27 million expansion. Last year ING<br />
dropped efforts to sell the project,<br />
which had brought interest but no<br />
proper offers, and instead decided to<br />
go ahead with a major expansion. The<br />
second phase, expected to create up to<br />
Work is progressing on the 25,000-m 2 first phase of Sicilia Outlet Village,<br />
as seen from this photo taken on Feb. 4. Located in the middle of Sicily, one<br />
hour from Taormina and 90 minutes from Palermo, the scheme will open in the<br />
autumn. Premium <strong>Retail</strong> and Gruppo Percassi are developing the center.<br />
500 jobs, will include a cinema, supermarket,<br />
hotel and petrol station.<br />
Dalton Park, which opened in 2003,<br />
has weathered the recession and is now<br />
in good shape with footfall up 6 percent<br />
and <strong>sales</strong> up 10 percent (see page 4).<br />
ING hopes to gain approval for the<br />
expansion this year and begin working<br />
on it by the end of 2011. The center,<br />
just off the A19 on the site of Murton<br />
Colliery, was originally granted outline<br />
planning permission in 2001.<br />
FOCs in Japan,<br />
Korea expand<br />
ChElSEA JAPAN opened the<br />
176,000-sf phase 2 of Kobe-Sanda<br />
Premium Outlets in December, adding<br />
90 new tenants. The center now totals<br />
180 stores and 371,000 sf. New tenants<br />
include Armani, Helmut Lang, A Bathing<br />
Ape and Dsquared2, as well as a full<br />
range of men’s brands, including Edifice<br />
and Paul Smith.<br />
Chelsea Japan also broke ground on<br />
phase 3 of Toki Premium Outlets on<br />
Oct. 29, 2009. This expansion will add<br />
another 30 stores, bringing the total<br />
to 140. The 231,000-sf center, which<br />
opened in 2005, is located in the Toki<br />
Plasma Research Park.<br />
Shinsegae Chelsea opened a small<br />
expansion of Yeoju Premium Outlets<br />
(Korea) on Dec. 18, 2009. The 15 new<br />
stores include Bally, Michael Kors, Moschino,<br />
Loro Piana, Leonard, Nina Ricci,<br />
Tumi and Issey Miyake. The center is 36<br />
miles southeast of Seoul.<br />
Moulin de Nailloux<br />
gets new owner<br />
before it opens<br />
IN FEbRuARY, the European property<br />
investment company Corio acquired<br />
75 percent of the planned Moulin de<br />
Nailloux in Toulouse, France, from developer<br />
COGEP. The acquisition price<br />
was €44 million.<br />
The <strong>outlet</strong> center’s 22,100-m 2 first<br />
phase is set to open in June 2011. The<br />
new-construction <strong>outlet</strong> village, in<br />
Chemin du Gril, Le Moulin, 30 km<br />
south of Toulouse, was 50 percent<br />
leased as of March 1. An 8,800-m 2<br />
phase 2 will open in 2014.<br />
COGEP retains 25 percent ownership,<br />
and its subsidiary Advantil will<br />
continue leasing, marketing and managing<br />
the center, including the planned<br />
second phase. Corio has first rights to<br />
acquire the remaining 25 percent of the<br />
property in 2016.<br />
As of Dec. 31, 2009, Corio’s €5.7 billion<br />
portfolio included 1.5 million m 2 in<br />
105 projects, of which 91 are shopping<br />
centers. The company’s pipeline portfolio<br />
includes approximately 18 phase 1<br />
projects and 14 expansions. c<br />
SPRiNg 2010 INteRNatIONaL OutLet JOuRNaL 17
NEWS NOTES<br />
Whiteley Village<br />
To be leveled<br />
WhEN WhITElEY Village Outlet<br />
Shopping opened in Hampshire in<br />
November 1999, it was the 18 th <strong>outlet</strong><br />
scheme to open in England. Six months<br />
later, the 324,030-sf Gunwharf Quays<br />
opened in Portsmouth, just 15 minutes<br />
south of Whitely Village. The smaller<br />
center never got much traction, and it is<br />
now slated for demolishment.<br />
Planners have given a green light<br />
to a €112 million scheme on the<br />
site. Whiteley Co-Owners, developers<br />
of the new project, will tear down<br />
Whiteley Village, causing at least<br />
18 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
one council member, probably not<br />
a developer, to wonder what was<br />
wrong with the existing buildings.<br />
The new development is designed<br />
to be <strong>more</strong> in tune with local needs<br />
– that is, not focused on <strong>outlet</strong>s –<br />
and will include shops, restaurants,<br />
cafes, a community theater, a library<br />
and a community hall.<br />
Australian DFO<br />
portfolio for sale<br />
Direct Factory Outlets has put its<br />
portfolio of eight DFO <strong>outlet</strong> centers<br />
and three conventional schemes on<br />
the selling block. The Australian<br />
The Outlet at bridgewater Park had a set-back recently when approval for a Tesco<br />
was denied.<br />
The Outlet regroups,<br />
names new manager<br />
The Outlet at Bridgewater Park<br />
in Banbridge, N. Ireland, has new<br />
management. Glenrye Properties<br />
Services, which runs Ireland’s largest<br />
mall, the 80,000-m 2 Dundrum Shopping<br />
Centre outside Dublin, took over management<br />
of The Outlet on Jan. 1.<br />
Land Securities, which previously<br />
managed The Outlet, is still involved in<br />
the overall project. When first conceived,<br />
Bridgewater Park was to be a 1.2<br />
million-sf complex, with phase 1 being<br />
the 19,000-m 2 <strong>outlet</strong> center.<br />
Phase 2 was envisioned with another<br />
40,000 m 2 of retail, which apparently<br />
already had approvals, a drive-through<br />
restaurant, hotel, petrol station, additional<br />
parking and a 52,336-m 2 business<br />
park.<br />
However, in late 2009, approval to<br />
build a 12,000-m 2 Tesco was denied<br />
on the grounds that Bridgewater Park<br />
would turn Banbridge’s town center into<br />
a ghost town. The turn-down was a big<br />
blow for Bridgewater developer GML<br />
Estates, a joint venture of Orana Group<br />
and Land Securities.<br />
In early February, GML confirmed that<br />
it is seeking a judicial review of the decision<br />
with the High Court in Belfast. c<br />
company, founded in 1996 by David<br />
Goldberger and David Weiland, is<br />
looking for a buyer or investor. The<br />
centers are actually warehouses with<br />
subdivided spaces for retailers.<br />
According to a report in the<br />
Australian Financial Review, Jones<br />
Lang LaSalle is marketing the portfolio,<br />
which brings in €986 million in<br />
annual revenue.<br />
DFO will either sell the centers<br />
outright or sell the centers and<br />
retain management. Weiland and<br />
Goldberger, who own houses next<br />
door to each other in the upmarket<br />
suburb of Toorak, were jointly listed<br />
on last year’s BRW Rich 200 with a<br />
fortune of €468 million.<br />
The pair is best known for founding<br />
the discount petrol chain Solo in 1974,<br />
before selling it 15 years later for a<br />
reported €131 million. They now own<br />
the petrol wholesaler Liberty Oil.<br />
DFO centers are in Melbourne,<br />
Sydney, Brisbane, Canberra and<br />
Cairns, and are planned for Hobart,<br />
Townsville and Perth as well as outside<br />
of Australia.<br />
Rathdowney sees<br />
losses for 2009<br />
AWG PROPERTY SAYS that its<br />
Rathdowney Designer Outlet in Laois,<br />
Ireland, lost €5.4 million in 2009, of<br />
which €4.6 million was a depreciation<br />
of the asset.<br />
However, the nine-year-old center<br />
achieved a net operating profit of<br />
€127,685 for the year.<br />
AWG points to tenant concessions<br />
on rent at the 100,000-sf center as<br />
one of the culprits for the loss. The<br />
developer added in a statement that<br />
the recent difficult economy in Ireland<br />
had made “attracting and retaining<br />
quality tenants very challenging.”<br />
The opening of <strong>Value</strong> <strong>Retail</strong>’s<br />
upscale Kildare Village in 2006 probably<br />
hasn’t helped Rathdowney’s <strong>sales</strong><br />
and footfall, either. The 125,000-sf<br />
Kildare Village is one hour northeast<br />
of Rathdowney, and less than an hour<br />
from Dublin’s city center.
Prada opens in<br />
McArthurGlen’s<br />
Roermond FOC<br />
ICONIC luXuRY brand Prada opened<br />
at McArthurGlen’s Designer Outlet<br />
Roermond, on Feb. 12. Prada has two<br />
other <strong>outlet</strong> stores at McArthurGlen<br />
centers, at Serravalle Designer Outlet<br />
near Milan and at Barberino Designer<br />
Outlet near Florence. The Roermond<br />
store is the brand’s first <strong>outlet</strong> store<br />
in a European Union country other<br />
than Italy.<br />
Prada joins such luxury brands<br />
at Roermond as Armani, Burberry,<br />
Dolce & Gabbana, Escada, Gucci, Hugo<br />
Boss, Loro Piana, Polo Ralph Lauren,<br />
Salvatore Ferragamo and Zegna.<br />
Designer Outlet Roermond, near<br />
Düsseldorf, is in the Netherlands but<br />
many of the center’s 3.5 million annual<br />
shoppers live in Germany.<br />
McArthurGlen plans to open a 7,000m<br />
2 expansion of the 28,000-m 2 center<br />
in 2011. DOR is co-owned by<br />
McArthurGlen and Henderson Global<br />
Investors’ European Outlet Mall Fund.<br />
However, Henderson isn’t involved in<br />
the expansion.<br />
DOR is one of Europe’s top-performing<br />
<strong>outlet</strong> centers, according to<br />
a ranking compiled by commercial<br />
real estate consultant CBRE and<br />
German-based research organization<br />
Ecostra. The ranking is based<br />
on responses from brands surveyed<br />
about their turnover performance at<br />
60 <strong>outlet</strong> centers.<br />
New tenants<br />
take space<br />
at Alpenrhein<br />
AlPENRhEIN VIllAGE in Landquart,<br />
Switzerland signed up several new<br />
tenants this winter. Italian jeans brand<br />
Diesel will open in the fourth-largest<br />
retail space at the 226,020-sf center<br />
in April. The 3,350-sf unit is oppo-<br />
Italian luxury brand Prada chose McArthurGlen/Henderson Global Outlet Fund’s<br />
Designer Outlet Roermond for one of its few <strong>outlet</strong>s outside Italy.<br />
site Sarar at the center’s northern<br />
entrance. Other new tenant signings<br />
in February include Victorinox,<br />
Lavazza and Envy Sports.<br />
Alpenrhein Village, which opened<br />
in October 2009, is owned by ING<br />
Real Estate and is managed by GVA<br />
Grimley Outlet Services.<br />
Gap opens at<br />
Junction One<br />
AMERICAN bRAND Gap opened Jan.<br />
20 at Junction One International<br />
Outlet Shopping Centre in Antrim,<br />
N. Ireland. Already trading in <strong>more</strong><br />
than 180 full-price and <strong>outlet</strong> locations<br />
in the U.K., Ireland and France,<br />
the 6,000-sf unit is Gap’s second<br />
<strong>outlet</strong> store on the island of Ireland.<br />
Other tenants in the 245,000-sf center<br />
include Marks & Spencer, Clarks,<br />
Next, Nike and Adidas, as well as<br />
designer brands Austin Reed, Mexx<br />
and Moss.<br />
Since opening in May 2004,<br />
Junction One has attracted <strong>more</strong><br />
than 15 million visitors, drawn by the<br />
scheme’s 3,000 parking spaces, 70<br />
stores and 10 cafes.<br />
Junction One is owned by CUSP,<br />
the Kennedy Group and Dunalastair<br />
(Ireland) Ltd. c<br />
Gap Outlet recently joined Mexx, Tom Tailor, Nike, Adidas and <strong>more</strong> than 65 other <strong>outlet</strong><br />
shops at Junction One International Outlet Shopping Centre in Antrim, N. Ireland.<br />
SPRiNg 2010 INteRNatIONaL OutLet JOuRNaL 19
OUTlET TRaDE gROUPS<br />
ORDA’s big question:<br />
Can we share data?<br />
by brendon O’Reilly,<br />
President, ORDa<br />
Outlet <strong>Retail</strong>ers and<br />
Developers association<br />
Sales density? How far do<br />
consumers travel for a discount?<br />
Cap rate? Service charge? Product<br />
supply? Best brand penetration? Is this a<br />
good <strong>outlet</strong> site? Is cannibalization really<br />
a problem?<br />
I’ve been<br />
involved in the<br />
<strong>outlet</strong> industry for<br />
the last 17 years,<br />
and have been a<br />
developer, a tenant<br />
and a consultant<br />
O’Reilly<br />
to <strong>more</strong> than 50<br />
centers. There are<br />
often many questions, but regardless of<br />
whether you’re a tenant, a developer or<br />
an investor, the issues aren’t that different.<br />
However, as the sector grows, some<br />
questions become harder to answer.<br />
The buzz word or buzz phrase of the<br />
Italian trade<br />
group to submit<br />
IOJ column<br />
ThE FACTORY OuTlETS’ Advisory<br />
Committee of the Italian National<br />
Council of Shopping Centers will<br />
launch its industry-update column<br />
in the Summer 2010 IOJ. The<br />
Italian <strong>outlet</strong>-industry trade group<br />
was introduced by Filippo Maffioli in<br />
October 2009 at the ICSC European<br />
Factory Outlet Conference in Milan.<br />
The new column will help the<br />
global <strong>outlet</strong> community keep track<br />
of the Italian FOC industry by providing<br />
information about local market<br />
trends, the committee’s goals<br />
and activities and its links with the<br />
analogous associations and trade<br />
groups around the world.<br />
20 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010<br />
last year has been due diligence. Funding<br />
partners at any level need validated<br />
numbers and facts to be able to provide<br />
financing for inventory, development<br />
and investments.<br />
The lack of information within the<br />
sector is preventing new entrants and<br />
slowing down the <strong>growth</strong> of future<br />
developments and brands. To truly understand<br />
the wide and diverse nature of<br />
the benefits of an <strong>outlet</strong> strategy and the<br />
significant profit and investment return<br />
that can be achieved, we need to find<br />
ways to demonstrate it.<br />
There are lots of big questions that<br />
must be addressed, but where can we<br />
find answers?<br />
There is no one-stop shop for <strong>outlet</strong><br />
industry information, research or figures.<br />
In the U.S., though, ICSC was able to<br />
conduct an <strong>outlet</strong>-center <strong>sales</strong> index for<br />
five years in the 1990s and an <strong>outlet</strong>chain<br />
<strong>sales</strong> index for several years,<br />
ending in 2006. In January, through the<br />
efforts of the U.S. trade group DOCR,<br />
an Outlet Research Subcommittee was<br />
created. This subcommittee will greatly<br />
benefit the U.S. <strong>outlet</strong> sector.<br />
Though the surveys on <strong>outlet</strong>-center<br />
performance conducted by CBRE and<br />
Ecostra are finding <strong>more</strong> participants<br />
each year, there is still plenty of room<br />
for improvement.<br />
So, why the paucity of information in<br />
Europe?<br />
The answer is simple. In the past developers<br />
didn’t want to show their cards,<br />
and brands didn’t want to talk about<br />
their <strong>sales</strong> and lease deals. We think<br />
those attitudes may be shifting.<br />
Outlet <strong>Retail</strong>ers and Developers Association<br />
was established by a group of<br />
brands, developers and consultants for<br />
one main purpose: to provide a platform<br />
for sharing information that will help us<br />
all – both new and existing entrants –<br />
make better decisions.<br />
Due diligence has caused developers<br />
and brands to rethink their information<br />
strategy and to look at ways of sharing<br />
<strong>more</strong> data in return for having access to<br />
facts and figures that can help their business<br />
develop and grow.<br />
The ORDA web site was launched at<br />
the ICSC/IOJ European Outlet Conference<br />
in October in Milan and the hits<br />
have been growing week by week. Later<br />
this year we will launch the first newsletter<br />
for members.<br />
Please take some time to look at<br />
the site – www.orda-<strong>outlet</strong>s.com – and<br />
register for future info, or contact me at<br />
brendon.o’reilly@gvagrimley.co.uk. c<br />
Brendon O’Reilly is the director of GVA<br />
Grimley Outlet Services.<br />
Save This Date!<br />
October 13-14, Milan<br />
2010 ICSC EuropEan<br />
FaCtory outlEt ConFErEnCE<br />
Why brands love Outlets<br />
l Presentations by top brands<br />
l Case Studies<br />
l research
SAMPlE AD<br />
ACTuAl SIZE<br />
120 pixels by 90 pixels
WiTH THiS iN MiND<br />
bring brands alive through<br />
strategic digital marketing<br />
by Deborah Owen-Ellis Clark<br />
AS A STRATEGIC marketer, I<br />
find that keeping up with digital<br />
progress is a challenge, albeit a<br />
stimulating one. Invariably a number of<br />
questions spring to my mind:<br />
How do virtual conversations affect<br />
physical conversations?<br />
How do we effectively<br />
use digital technology?<br />
How do we measure it?<br />
How do we manage it?<br />
Or do we even need<br />
to measure, use and<br />
manage it?<br />
These questions still<br />
remain largely unknown<br />
because of a lack of<br />
robust data.<br />
The world has grown<br />
smaller with the dawn of<br />
the internet, yet it also<br />
seems <strong>more</strong> disparate when it comes to<br />
technology. For example, while entire<br />
nations are waiting to see the newest mobile<br />
device or e-reader, a village in India<br />
is marking 25 years without electricity<br />
(The national grid was laid, but the village<br />
has no finances to pay for service).<br />
Nevertheless, a lack of electricity is<br />
not hampering progress. The advent of<br />
mobile technology is enabling people<br />
to connect globally and many emerging<br />
economies are leapfrogging various<br />
Owen-Ellis Clark<br />
22 INteRNatIONaL OutLet JOuRNaL WiNTER 2010<br />
stages on the path to technological<br />
enlightenment. There are no landlines<br />
or computers for them – PDAs are the<br />
device of choice because they function<br />
as computers, with mobility and access<br />
to the virtual world.<br />
In marketing there has been a<br />
paradigm shift in how we communicate<br />
with our customers from<br />
“push” to “pull” marketing.<br />
Incredibly, in the<br />
space of a few of years<br />
there has been a shift in<br />
locus of control – now<br />
consumers are in charge.<br />
Customers are choosing<br />
whether or not to engage<br />
with a brand. Via the<br />
internet they freely voice<br />
opinions, giving both endorsements<br />
and critiques.<br />
This viral communication<br />
is speedy and it’s global.<br />
This progress is exciting, daunting and<br />
dynamic. We need to embrace digital<br />
technology. We ignore it at our peril. As<br />
marketers and business development<br />
experts, we have a duty to our retailers, investors<br />
and our customers, to keep abreast<br />
of the latest mode of conversation. Thus,<br />
we must integrate digital and virtual activity<br />
into our marketing strategies.<br />
As always, a balanced approach is<br />
essential. Yes, we need to keep the<br />
traditional media, too. But we can also<br />
enliven our brands by initiating internet<br />
dialogue for special offers and product<br />
endorsements. I know this works. An<br />
initiative for an <strong>outlet</strong> center in the UK<br />
on Facebook recently generated a 10-fold<br />
response above other similar initiatives.<br />
But that is just anecdotal evidence.<br />
One challenge we face is the ability to<br />
measure the effectiveness of our strategies<br />
and campaigns. I suggest that we<br />
all start by being willing to experiment,<br />
explore, ask questions, record results<br />
and share each other’s findings.<br />
We in the <strong>outlet</strong> sector are perfectly<br />
poised to become leaders – leaders who<br />
use digital marketing in the most effective<br />
and integrated way. c<br />
Contact Deborah Owen-Ellis Clark at<br />
Deborah@thebeegroup.co.uk .<br />
Deborah Owen-Ellis Clark, M.A.,<br />
M.C.I.M., F.R.S.A., is the director of<br />
Bee Group Strategic Marketing and<br />
Business Development Consultancy.<br />
Her previous experience includes<br />
stints as marketing director for Land<br />
Securities’ Gunwharf Quays and UK<br />
franchise manager for Levi Strauss<br />
UK Ltd.<br />
2010 IOJ Calendar<br />
ICSC european Conference<br />
April 28-29, Clarion Congress<br />
Hotel, Prague, Czech Republic<br />
ICSC ReCon<br />
May 23-25, Las Vegas<br />
VRN Fall Outlet Deal Making<br />
September 27-28, Secaucus,<br />
N.J.<br />
ICSC european Factory Outlet<br />
Conference<br />
October 13-14, Milan