Vigorous sales spur more outlet growth - Value Retail News

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hero was childrenswear. Sales jumped 63
percent in that category as families looked
to stretch their pound further.
Boxing Day sales on Dec. 26, 2009
were buoyant, as well, with Cheshire
Oaks Designer Outlet near Chester
experiencing an increase of more than
20 percent compared to Boxing Day
2008.
The number of sales transactions for
the period rose by 10 percent compared
with the same period last year, and
designer collections performed particularly
well, with sales up 20 percent as
Sunny skies have been shining on Park
Avenue Fashion Outlet in Bilbao, Spain.
The 200,000-sf outlet center produced
a 12 percent increase in like-for-like sales
for 2009, and the scheme welcomed
almost 3 million visitors last year, a 16
percent increase compared to 2008.
Park Avenue is a component of Megapark
Barakaldo, which was acquired by
Resolution Property in 2006 and is managed
by Jones Lang LaSalle. Megapark is
the largest retail and leisure destination in
Spain. The project includes an 11-screen
multiplex and IMAX cinema; 929,000 sf
of big box retail and free covered parking
with direct access to stores.
Michel Nangia, senior manager at
Resolution Property, attributes the
growing success of the outlet center,
which opened in 2007, to the company’s
management style.
“Our proactive, hands-on asset management
approach has significantly helped us
navigate what has been a tough time this
past year,” he says, adding that Resolution’s
attention to detail has been noticed and
appreciated by the center tenants.
For instance, Egoitz Barturen, store
manager at Puma says, “Although we
have been trading in the center for only
14 months, the results regarding footfall,
capture rate and sales could not be any better.
Our 2009 was superb, and the forecast
for 2010 has the same positive trend not
only for our chain, but for the whole outlet
center here at the Megapark.”
Javier Anton, coordinator of GEOX in
Northern Spain, says his productivity expectations
have been exceeded. “Our 2009
6 INteRNatIONaL OutLet JOuRNaL SPRiNg 2010
shoppers embraced party attire. Overall,
holiday footfall rose by 1.5 percent.
McArthurGlen Designer Outlets are
located in Ashford, Bridgend, Chester,
Livingston, East Midlands, Swindon and
York.
Sales, footfall
soar for Neinver
Neinver, the second largest operator
in Europe (after Henderson Global Outlet
Mall Fund), has posted a 28 percent
increase in turnover for 2009 compared
with 2008. Additionally, footfall at Nein-
Anatomy of an Increase:
Park Avenue’s success based on data and teamwork
results have been very positive, exceeding
expectations, and quite impressive, considering
the generalized and negative situation
of retailers in this economy.”
One tool Resolution has used to help
retailers increase their sales has been the
simple employment of traffic counters.
“We installed bespoke counters
[supplied by PFM] at the entrance of
the center and in every store,” Nangia
explains. “All of our retailers provide us
with their turnover figures, and when
combined with the footfall flow into
their stores, we’re able to calculate the
sales conversion rate.
“This information is entered into
PFM’s website, which then provides us
with a weekly report with key perfor-
ver’s 11 outlet centers in Italy, Germany,
Spain, Poland and Portugal increased by
11 percent to 30 million visitors compared
to 27 million in 2008.
“The good results registered in 2009
show that the outlet concept continues
to strengthen in Europe as one of the
retail concepts that consumers like best,”
says CEO Manuel Lagares. “We’ve seen
this sector’s appeal gradually intensify for
the last two years.”
Neinver also manages the Irus European
Retail Property Fund, which focuses
on the acquisition of outlet centers and
other retail assets across Europe. c
Resolution Property attributes the success of Park Avenue, a component of the
Megapark Barakaldo in Bilbao, Spain, to the company’s hands-on management and use of
technology to help drive sales and footfall.
mance indicators. The report highlights
the key strengths at the center and alerts
us to any problems at an early stage,
enabling us to work closely with our retailers
to assist them in improving their
sales conversion rates.”
The center management team frequently
meets with tenants, he says, working
with chains to drive sales through marketing
support, signage and other initiatives.
Park Avenue’s catchment within a
90-minute drive is 3.5 million people, including
more than 1 million living within
15 minutes of the project. The average
household income for the market is 28
percent higher than the national average.
The market’s average household spend
on retail goods is €11,616. c