The definition of a Factory Outlet Village
Dr. Joachim Will in ecostra GmbH (Economic, Location and Strategy Consultancy in Europe ) defines Factory Outlet Centers (FOC) as follows:
“FOC are conurbations of many outlet store units within a mutually-planned or a spatially interrelated complex of buildings with more than 5,000 m² sales area (= ca. 6,000 m² GLA) or with more than 20 outlet stores. There manufacturers and vertically-integrated retailers sell past seasons, factory seconds, surplus stock, etc. directly to the consumer, without using retail businesses as distributive channels. The coordination, organisation and marketing is carried out by a center management. Designer Outlet Centres (DOC) are FOC which claim to incorporate an especially high proportion of premium brands; however, the designation “DOC” is often used only for marketing purposes.”
“Boom times for designer outlet villages”
Sales at discount designer outlet villages are booming as Britain’s middle classes look for bargains and Russian and Arab tourists swap Bond Street for mall outlets in the country.
While sales elsewhere in the UK stagnate, gross sales at Bicester Village, the designer outlet centre near Oxford, are up 40 per cent on the same time last year, with like-for-like sales, which strip out new stores, up by 25 per cent. At McArthurGlen, the biggest outlet chain in the country, with seven sites, sales rose by 5.6 per cent in the second quarter, compared with the same time a year ago. At Junction One in Northern Ireland, sales rose by 8 per cent.
The Times UK
http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6728239.ece
Outlet Village shopping attracts the tourist crowd
”The International Shopping Traveler Study shows that value for the price is the number one motivator for international shoppers. In addition to value, a wide selection of brands was often cited as an important element of the shopping traveler´s experience. 48 percent of travelers surveyed said the outlet mall was a motivator, showing that well-positioned outlet centers have much to gain by courting the international travel shopper.”
Value Retail News, August 2009
How does a factory outlet village influence other retail trade?
A similar energy boost to the city centre happened in Ingolstadt, where Value Retail opened an outlet village in 2005. After the opening, a full-price shopping centre, City Arcaden, opened with 8,000 m² of retail floor space and 38 stores. Up to now, there have been no store closings.
However, unlike Zweibrücken, Ingolstadt retailers have reported more visits to their stores by those who have travelled long distances to shop at the outlet centre. A report on the effects of Ingolstadt Village on the city centre concluded there was only a limited influence on local shopping. Instead, visitors to the outlet centre came from much further afield and those living in and around Ingolstadt continue to do their everyday shopping in the West Park shopping centre or in the city centre itself.
http://www.valueretailnews.com/back_issues/ioj/2008_IOJ_Winter.pdf
Premier Outlet Centre outside Copenhagen is gaining solid growth!
“Premier Outlet Centre Denmark recently celebrated its one-year anniversary. The centre saw a 39-percent increase in comparative sales for March/April 2009 and a 16 percent increase in average spend compared to 2008.”
International Outlet Journal, Spring 2009
http://www.valueretailnews.com/back_issues/ioj/2009_IOJ_Spring.pdf
