slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
What is an Outlet Centre?: How do outlet centres fit into the retail dynamic? Presented by: Lisa Quier Wagner Presiden PowerPoint Presentation
Download Presentation
What is an Outlet Centre?: How do outlet centres fit into the retail dynamic? Presented by: Lisa Quier Wagner Presiden

Loading in 2 Seconds...

play fullscreen
1 / 23

What is an Outlet Centre?: How do outlet centres fit into the retail dynamic? Presented by: Lisa Quier Wagner Presiden - PowerPoint PPT Presentation


  • 246 Views
  • Uploaded on

What is an Outlet Centre?: How do outlet centres fit into the retail dynamic? Presented by: Lisa Quier Wagner President, Quier Target Marketing. Lisa Wagner – Quier Target Marketing Started in the outlet centre industry in l988 with McArthur Glen in US – 22 centers opened in 6 years!

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'What is an Outlet Centre?: How do outlet centres fit into the retail dynamic? Presented by: Lisa Quier Wagner Presiden' - Ava


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

What is an Outlet Centre?: How do outlet centres fit into the retail dynamic?Presented by:Lisa Quier WagnerPresident, Quier Target Marketing

slide3

Lisa Wagner – Quier Target Marketing

  • Started in the outlet centre industry in l988 with McArthur Glen in US – 22 centers opened in 6 years!
  • Opened Cheshire Oaks in 1995 with McArthur Glen Europe
  • Further openings in France, Sweden, Scotland and Germany with McArthur Glen and Outlet Centres International
  • Over 40 outlet centres in 20 years – and now Bucharest, Romania with Mega Designer Outlets
what is an outlet centre
What is an outlet centre?
  • A collection of manufacturers’ owned, operated, or licensed stores selling overstocks, excess goods and overruns direct to the public
history of the outlet centre industry
History of the Outlet Centre Industry
  • In 1800’s, US apparel and shoe mills began offering excess goods for sale to employees and then public
  • In 1936, Anderson Litter (menswear) pioneered “Factory to You” disposition centers for overstocks
  • In l974, the first Multi-Tenant Outlet Mall opened in Reading, Pa in a former apparel mill building
  • During late l970’s and ‘80’s, outlet centers opened due to:
    • Consumer desire for status symbol brands
    • Impact of economy and energy crisis on discretionary income
    • Pressure on wholesale business resulting in underutilized factory output
    • Increased overseas manufacturing and long order lead times
    • Demise of exclusivity arrangements for brands in department stores
    • Increased financial failures of department and specialty stores
history continued
History Continued
  • During ‘boom’ of 1980’s and ‘90s, outlet centers opened based on:
    • Non-metropolitan markets/’edge of town’ locations
    • Sensitivity to retail accounts
    • High tourist trade
  • Around 2000, industry compressed through mergers and acquisitions; the industry repositioned more competitively
  • Recent trends driving US outlet center development:
  • Consumer demand for quality, value and selection
  • Recognition that outlet stores could be profit centers rather than simply disposition
  • Technological advances allowing manufacturers to increase productivity and intentionally overproduce
  • Growing strength of brands over department stores
who is the outlet customer
Who is the outlet customer?

Extensive studies show consistent patterns:

  • Demographic profile:
    • Predominantly Women
    • Average age of 40
    • Typically employed; education level of some College+
    • Household Incomes $50,000 USD per annum+ (Middle class and above)
    • Typically living in households with children 
  • Psychographic profile – Heavy shoppers; early adopters; inquisitive; brand-seekers
current state of the us outlet industry very healthy
Current State of the US Outlet Industry – Very Healthy!
  • Centers getting closer to city centers  
  • Village concept gets customers away from cars and into pedestrianized plazas – increases impulse shopping, allows all stores access to customers, greatly enhances dwell time, sales results dramatically increased (98% of new projects are villages)
current state of the us outlet industry very healthy9
Current State of the US Outlet Industry – Very Healthy!
  • Upgraded store ambiance and amenities enhances brand image and loyalty
  • Few irregulars and overruns; more current season stock
  • Strong sales patterns with less seasonality
  • Tourism continues to be strong driver
industry snapshot as of april 2008 source icsc
Industry Snapshot:(As of April 2008, source: ICSC)
  • Number of US outlet centers: 217 
  • Total outlet center Gross Leasable Area (GLA): 57 million square feet = approx 17.8 million square meters
  • Average outlet center GLA: 260,422 sf = approx 81,400 square meters 
  • Average size of the 20 largest centers in the US: 606,000 sq ft (approx 190,000 sqm)
  • 74 developers own 217 outlet centers: with the Big Three: Chelsea, Prime and Tanger owning 93
  • 44 new centers being planned currently
the stores are what make the centre as of dec 2007 source icsc
The Stores are What Make the Centre:(As of Dec, 2007; Source: ICSC)
  • Total number of outlet chains in US Outlet centres: 305
  • Total number of stores: 11,544
  • Average outlet chain size: 38 stores
  • 2008 expansion plans: 348 new stores (66 chains reporting)
  • 2009 expansion plans: 302 new stores (48 chains reporting)
  • Number of parent companies operating outlet chains: 261 parent companies
  • Number of parent companies operating multiple concepts: 51 chains operate 140 concepts totaling 6,337 stores 
the stores are what make the centre as of dec 2007 source icsc12
The Stores are What Make the Centre:(As of Dec, 2007; Source: ICSC)
  • TOTAL OUTLET SALES OF OVER $17 Billion USD per annum representing approx 2% of total retail sales in the US economy
global expansion
Global Expansion
  • Back-of-factory shops existed throughout Europe for centuries
  • Proliferation of ‘gray market’ goods and resulting brand damage, combined with success of outlet industry in US prompted European expansion
  • McArthur Glen Europe opened first ‘American-style’ outlet centre, Cheshire Oaks, in UK in 1995
global expansion14
Global Expansion
  • Now 117 outlet centers in 22 countries of Europe and UK; total of 24.3 million square feet or 7.5 million sqm
  • Asian sector accounts for 5.3 million sqf; Turkey has 6 centers, Dubai has a 1 million sqf Dubai Outlet Mall; Australia and New Zealand have 16 total and one in South Africa; South America is developing and BRIC (Brazil/Russia/India/China) is next focus of interest
global expansion15
Global Expansion
  • Of European centers, 59 companies own 117 of the centers, creating diversity
  • 20 largest centres total more than 8 million sf; 17% of the centres account for 33% of the GLA 
  • Developers are planning 28 Phase One outlet schemes totaling nearly 6 million sf (1.8 million square meters) of GLA; 14 expansions to existing projects are planned in the next 2 years
global expansion16
Global Expansion
  •  In Eastern Europe:
    • Poland: 6 outlet centres open (pop of 38.5 mil)
    • Czech Republic: 2 outlet centres open (pop of 10 mil)
    • Hungary: 2 outlet centres open (pop of 9.9 mil)
    • Romania: 1 village concept outlet center opening; 1 mall concept (pop of 22 mil)
    • How many outlet centres could Romania hold? 
predictions for outlet centre development in romania
Predictions for outlet centre development in Romania:
  • The same rules will hold true as in the rest of the world:
  • Centers will prosper in edge of town locations primarily
  • If they can see it, they will get to it – visibility to the highway trumps access every time
  • It takes a village – get customers away from the cars and into an open-air plaza
  • Critical mass is critical – centres are getting bigger as a result of consumer demand for depth and breadth of offer
predictions for outlet centre development in romania22
Predictions for outlet centre development in Romania:
  • Tourism will be a driver
  • A ‘known’ destination is much easier to market
  • Traditional retail sensitivity is not a threat
  • Leisure is a complementary aspect – not an essential element
  • The brand/value equation has to deliver
  • Romanians are going to love outlet centres – and the outlet industry is going to embrace Romania!