ACROSS: CONGRATULATIONS ON YOUR THREE ANNIVERSARIES. HOW WAS THE EUROPEAN OUTLET INDUSTRY 20 AND 25 YEARS AGO COMPARED TO TODAY?
EDUARDO CEBALLOS: In the past two and a half decades, the outlet industry has undergone a remarkable transformation in Europe, leaving behind any past perceptions of offering a random selection of last season’s stock at discounted prices – the concept associated with the first-generation outlet centers. In the early 2000s, outlets emerged as a very attractive shopping option for consumers, and their popularity grew among retailers and investors. Brands and price were the main appeal, but gradually, a new generation of outlet centers emerged, where architectural concepts and designs, marketing, and customer services started gaining relevance.
Today, the industry has moved on further, and our focus has shifted to customers and how best to attract them. Outlets now offer features from other areas, such as hospitality, leisure, guest services, entertainment, and culture. For retailers, outlets have become a new customer acquisition channel, forming a crucial part of their omnichannel strategies.
ACROSS: WHAT ARE OUTLET DEVELOPERS’ AND MANAGERS’ MOST SIGNIFICANT CHANGES AND CHALLENGES?
CEBALLOS: One of the biggest challenges is to offer shopping destinations that combine an unbeatable retail proposition and a welcoming and fun experience in one place, making them the destination of choice for customers.
Also, our industry has become rich in data, and as operators, being able to leverage detailed and real-time metrics for marketing purposes and to support retailers on making more informed decisions that drive income is one of the current challenges. Collecting and interpreting data, market knowledge, and quality landlord-retailer relationships are critical differentiators in our sector today.
Finally, sustainability is one of the most significant changes in the industry today. Companies are making tremendous advances in this area, for example, improving energy efficiency, implementing new forms of mobility, enhancing accessibility to accommodate visitors with different needs, and focusing on positively impacting their local communities.
ACROSS: WHAT ARE, IN GENERAL, THE MAIN DIFFERENCES REGARDING OFFERS AND BRANDS?
CEBALLOS: Twenty years ago, outlet shops focused more on mixed fashion and footwear brands. Today, they include an increased number of brands and categories, from sports to homeware and eyewear to cosmetics, attracting a more comprehensive range of consumers.
Sports have grown as a leading category in terms of retail offer. Our outlets are renowned for their unique sportswear and outdoor wear brand mix, with top-class tenants such as Adidas, Nike, Puma, Asics, Converse, New Balance, Skechers, Under Armour, Salomon, The North Face, Timberland and Napapijri providing an unrivaled offerings in these categories.
We have also seen premium lifestyle fashion and athleisure gain weight as well as the development of beauty and cosmetics. For instance, in the past three years brands such as The Cosmetics Company Store, Kiko, L’Oreal, Primor, and Rituals have grown their presence considerably across the portfolio.
ACROSS: WHICH SEGMENT HAS GROWN IN PARTICULAR IN IMPORTANCE?
CEBALLOS: The most dramatic transformation over recent years is F&B. We have seen a significant increase in demand for F&B space within the outlet sector, with sales in this category climbing approximately 5% more than retail sales. We have considerably scaled up the F&B share in some of our assets. For instance, in Viladecans The Style Outlets in Barcelona – an open-air center that benefits from tourism, day visitors across the affluent catchment, and nearby business parks – the share has risen from 5% to 18%. Other examples include Castel Guelfo’s center, where we are currently growing the F&B offer and will soon begin restyling its food plaza to cater to various restaurants and terraces that will offer a fully-rounded experience.
ACROSS: ONE OF THE BIGGEST CHANGES IS THE INDIVIDUALIZATION OF LOCATIONS.
CEBALLOS: True, our outlet portfolio features 16 very different centers across Europe, each varying in size, positioning, retail mix, and dining offer. A ‘one-size-fits-all’ model would not work. A tailor-made approach is needed for each center to create value and meet its objectives. A center’s success depends on location, catchment, demographics, consumer needs, and competition. Also, as brand line-ups in outlet schemes are often similar, ensuring each center offers something original and authentic, such as local or regional brands, is critical. This is also true for the F&B offer. It is clear that different locations attract different demographics, and each center has its own needs.
ACROSS: GETAFE IS VERY WELL CONNECTED TO NASSICA RETAIL AND LEISURE PARK. WHAT IS THE ADVANTAGE OF THIS CONNECTION AT THIS SPECIFIC LOCATION?
CEBALLOS: Getafe The Style Outlets is unique, given its location in the Nassica Retail & Leisure Park, where a range of leisure and entertainment options can be found in one location. The setup is similar to San Sebastián de los Reyes The Style Outlets in Madrid, located in Alegra Retail & Leisure Park. These are larger retail spaces with a strong focus on leisure and a generous provision of F&B. Still, these two key destinations that combine an outlet center with a retail & leisure park are niche cases and not easily transferable to other destinations.
3 CENTERS, 3 DIFFERENT DEVELOPMENTS AND MILESTONES
Getafe The Style Outlets
“Getafe, The Style Outlets, has grown into one of NEINVER’s flagship shopping centers and a premier retail and leisure destination in the south of Madrid. In addition, the development of the Nassica Retail & Leisure Park three years later came as a major boost since it was the first time that consumers could find outlet shopping, specialist stores, and a range of dining, leisure, and entertainment options all in one location in this part of the region.”
The center has undergone three major refurbishments. The most ambitious took place in 2020 when the center’s layout was redesigned, a project that saw 7,000 sq m added to its GLA and welcomed just shy of 20 new or expanded stores to its retail offer, some of them tripled their space such as Nike or Adidas, which were able to relaunch with much more spacious and modern units. In terms of the visitor experience, it was a remarkable upgrade, creating a brighter and more airy shopping environment. We also made several sustainability and accessibility improvements.”
Vicolungo The Style Outlets
“Vicolungo The Style Outlets, located about 30 minutes from Milan and 40 from Turin, is the largest outlet scheme in our portfolio following two expansion projects, which took the center’s GLA from an initial 18,800 sq m up to more than 34,000 sq m.”
“It welcomes around 4 million visitors each year, drawn by a solid retail mix – which includes around 150 stores – an extensive and varied dining offer, and its elegant and modern ambiance. We renovated the center five years ago, enhancing the family leisure offering and adding a new indoor play area and a unique 1,700 sqm recreational and motor skills development playground for children.”
Castel Guelfo The Style Outlets
“Castel Guelfo The Style Outlets is situated 20 minutes from Bologna and easily reached from Ferrara, Ravenna, Forlì and Cesena; it enjoys a prime tourist location, less than an hour from the popular beaches of the Romagna Riviera.”
“It was expanded in 2009, adding more retail space and an original modern glass oval structure in the main square that stands out within the unique architectural design of the center, which features trademark Italian colonnades and a tall brick tower reminiscent of those found in Bologna. The center has evolved, focusing on convenience, top brands, and experience. To this end, work is underway to renovate the center’s food plaza and enhance its F&B offer.”
ACROSS: VICOLUNGO HAS DEVELOPED A FOCUS ON LEISURE AND GASTRONOMY. THIS HAS UNDOUBTEDLY ALSO COME ABOUT THANKS TO GOOD PARTNERS SUCH AS FERRERO. WHY EXACTLY DID THIS FOCUS COME ABOUT AT THIS LOCATION?
CEBALLOS: Placing a spotlight on leisure and F&B is vital to a scheme’s continued success, especially in well-established centers such as Vicolungo The Style Outlets. Investing in improving the food and leisure offer and giving our customers as many reasons to visit our centers as possible is part of our growth strategy. Vicolungo enjoys a strategic location in a well-connected area with a strong catchment that attracts both locals – especially families and groups of friends – and tourists alike. Visitors go to a popular day-out destination with “enjoyment” in mind. We have looked carefully at this center’s F&B offer regarding share, quality, and variety and explored new leisure and entertainment to bring fresh concepts that resonate with its catchment. It is the only outlet in Italy to host a smart gourmet space by the chef Antonino Cannavacciuolo.
The collaboration with Ferrero Group to bring “Kinder Joy of Moving Park” to the center, a 1,700 sq m recreational and motor skills development space for children – the only one of its kind in Italy – is just one way in which we have enhanced the shopping experience for the more than 4 million visitors we receive every year.
ACROSS: WHAT ARE THE PLANS FOR THESE LOCATIONS?
CEBALLOS: We will continue to expand our offer with exclusive store launches, new retail space, and the enhancement of the food mix. In Getafe The Style Outlets, we expect to end 2024 with 100% occupancy, and we will continue to grow hand in hand with Nassica. In 2025, we will see renovated dining offers in our Italian centers with the restyling of the F&B plaza at Castel Guelfo and our current work to enhance Vicolungo outlet center F&B, catering to local customers and tourists alike.
With national and international tourism bringing further visitors to our Italian outlets, we are placing a special focus on tourism with a strong B2C and B2B strategy at all levels regional, national and international – through collaborations with tourism organisations and travel partners but also targeting travelers directly. In addition, we will continue to focus on competitiveness, attracting new brands, diversifying our offer, looking particularly at services and hospitality, and including new leisure and entertainment concepts through creating experiences that connect brands and consumers and cater to the increasingly higher expectations of consumers today. Sustainability will continue to be a key focus, and we will remain an active member of the local communities in which we operate, generating opportunities and giving back part of what they give us, which is a lot.
Eduardo Ceballos
Eduardo Ceballos is Asset Management Director at NEINVER.
