ACROSS: VIA OUTLETS HAS INITIATED A DEVELOPMENT PROJECT TO EXPAND THE SALES AREA OF ITS LANDQUART FASHION OUTLET. WHAT ARE YOUR CONCRETE PLANS FOR THIS LOCATION?
OTTO AMBAGTSHEER: We recently had an event to officially start the expansion project in Landquart Fashion Outlet, Zurich. We are expanding the outlet with almost 5000 sq m of GLA and about 14 new units, including a new restaurant. Furthermore, we are demolishing an existing car park and creating a new multi-deck car park, adding about 350 more parking bays.
ACROSS: THIS IS A SIGNIFICANT PROJECT, BUT IT FITS IN WITH THE EXCELLENT DEVELOPMENT OF THE LOCATION.
AMBAGTSHEER: Absolutely. We are not sure if this is a coincidence or not. But seriously, this is brilliant timing. The center is performing exceptionally well. It is probably one of the best-performing centers in our portfolio this year. Landquart’s extension opening is planned for Q1 2026 since complex construction projects takes time. But we are starting the leasing already.
ACROSS: WHAT IS SPECIALLY PLANNED FOR THE F&B SECTION?
AMBAGTSHEER: F&B is a vital part of the new development. The outlet center is in the middle of the Alps, and the new restaurant is located at the new entrance. Guests will have a stunning view of the mountains. We are planning a sit-down table-service restaurant concept. There is also room for another coffee concept. We have not signed the leases yet, but we are in negotiations.
ACROSS: IS LANDQUART FASHION OUTLET TOURISTDRIVEN?
AMBAGTSHEER: The fashion outlet is already a big draw for domestic and international tourists visiting the Graubünden kanton, which is the 3rd most visited region in Switzerland with 5.4 Mio overnight stays in 2023. Landquart is, first of all, a winter destination with ski resorts like Arosa-Lenzerheide, St. Moritz and Davos nearby. Still, we are attracting more and more international guests in summer.
This year, it is one of our fastest-growing centers in terms of tourism. In addition to the growing numbers of European travelers, we’ve seen a 166% increase in tax free sales compared to last year regarding non-EU tourism. We’re welcoming many guests from the Gulf countries, Turkey, Israel, and even China are back again. There is undoubtedly an opportunity to focus more on tourism. Tourism, in general, is back to where it was in 2019.
ACROSS: IBERIA HAS ALWAYS BEEN YOUR MOST VITAL REGION. HOW IS IT THAT LANDQUART HAS CAUGHT UP?
AMBAGTSHEER: We still see incredibly solid growth in Iberia. Portugal and Spain had robust recovery after Covid and have continued to grow. As I mentioned, Landquart has been one of our better-performing centers and is up there with the Iberian markets in terms of growth. We acquired Landquart Fashion Outlet in 2014 and have seen constant growth since. Over the past 10 years footfall has grown more than 76% and brand sales by more than 108%. What has changed in recent years is the brand mix with a greater emphasis on the premium end of the market and this we will continue during the expansion.
ACROSS: SO YOU ARE CONSTANTLY FOLLOWING YOUR SO-CALLED 3-R STRATEGY.
AMBAGTSHEER: Landquart is probably where we have executed our 3-R strategy of remodeling, remarketing, and remerchandising in the best possible way. We focused a lot on remodeling. How can we make the center more attractive, elevate the guest experience and improve landscaping, and redevelop the center in the best possible way. With re-merchandising, adding brands like Polo Ralph Lauren, Furla, or Rituals to the brand mix helped position the center as a more premium destination and on remarketing, it’s mainly tourism, but also addressing the affluent shopper who lives in the wider Zurich catchment.
EXAMPLES OF F&B OFFERS BY VIA OUTLETS
Concerning the F&B offer, VIA Outlets follows the same principle as the rest of the fashion mix: they focus on international concepts combined with local offerings. For example, Five Guys expanded their presence within the VIA Outlets portfolio, opening a restaurant in Landquart Fashion Outlet in March 2024, alongside a commitment to open in Sevilla Fashion Outlet later this year.
They opened their first store in Zweibrücken Fashion Outlet in Q4 2023. Five Guys opened in Landquart as the brand’s first location in the German-speaking part of Switzerland. An example of a major transformation regarding the F&B offer took place in Oslo, one of the smaller enters within the VIA portfolio. An Asian food concept, Xa Xa, and a Norwegian Bakery called Råde Bakeri were added to the F&B mix.
ACROSS: WHAT ARE YOUR PLANS REGARDING YOUR OTHER LOCATIONS?
AMBAGTSHEER: We’ve finished the successful expansion project at Sevilla Fashion Outlet, which opened in late 2023. We project double-digit sales growth in that center in 2024. It’s been a very successful expansion project that is also very sustainable and has the highest BREEAM sustainability certification. We’ve also recently started work on expanding Vila do Conde Porto Fashion Outlet, Portugal.
This development is about 6500 sq m and 31 units, but it’s very straightforward as we’re just adding GLA to the center, which is going to open in Q4 2025. The focus is also on strengthening the F&B offer further with sit-down table service restaurants. Also in Portugal we are also starting a larger masterplan for Freeport Lisboa Fashion Outlet – one of the best centers in the portfolio. We’re not adding GLA but doing a major remodeling project in different phases.
The first phase is remodeling the main entrance and the Canal Street area. We have four distinct stages that will be executed by 2028. Down the road, we are working on potential expansion projects at Zweibrücken Fashion Outlet, Frankfurt, and Batavia Stad Fashion Outlet, Amsterdam.
ACROSS: SO, EXPANSION IS ESSENTIAL AND TAKING PLACE IN MOST OF YOUR CENTERS.
AMBAGTSHEER: We are assessing a potential expansion project or further remodeling in all our centers to keep elevating the guest experience. This is all part of our organic growth strategy.
ACROSS: LOOKING AT YOUR INORGANIC GROWTH STRATEGY: WHERE DO YOU WANT TO GROW WITH ACQUISITION?
AMBAGTSHEER: We look at Europe and Europe only. We are very much focused on the countries and regions in which we are already operating. We have strong teams in Portugal and Spain; the same applies to the Netherlands and Germany – we would be happy to grow in these markets. It is unlikely that we will look further east than Czech Republic or Poland, where we are operating now. Regarding new markets: Italy and France have well-established and developed outlet markets. We are also looking for opportunities there. I explained earlier this year that I would focus more on inorganic growth and acquisition. Although we have not added a new center to our portfolio of 11 centers, we remain actively focused on assessing and underwriting on and off-market potential acquisitions. But there have not been many transactions in the outlet channel on the market. So we haven’t missed an opportunity. We also remain highly selective on potential acquisitions. They should add value and complement our current portfolio.
ACROSS: LET’S EXAMINE THE BRAND MIX. WHO IS CURRENTLY VERY SUCCESSFUL ON THE RETAILER SIDE?
AMBAGTSHEER: Our success factor is the combination of internationally known brands and local brands. We work very closely with our top 20 brands as they deliver a big part of our brand sales in all centers. Then, we are looking at what we call beautiful local brands. These are local anchored brands with a strong national appeal that you will only see say in Oslo or Amsterdam. Regarding performance, it is a real mix. Our top 20 brands have achieved outstanding performance, but some of our local brands are even outperforming these brands. We generally see considerable growth for sports and outdoor brands. In general, fashion is growing.
ACROSS: YOU MENTIONED THAT F&B IS CRITICAL IN MANY OF YOUR EXTENSION PROJECTS. HOW HAS THE ROLE OF F&B GENERALLY CHANGED?
AMBAGTSHEER: There are several reasons why we are focusing so much on F&B. First of all, it became an essential part of the guest experience. When guests visit our center, we would like to offer them a lovely day-out experience that includes hospitality and a great brand mix. But if you want people to have a nice day out, a good and high-quality F&B offer must be part of the positive experience, and it also increases dwell time. If they spend more time, they will likely spend more money. Therefore, there is also a clear commercial reason behind it.
ACROSS: IS THERE A PERCENTAGE OF F&B OFFER YOU WOULD LIKE TO HAVE?
AMBAGTSHEER: When I look at the portfolio, 10 percent of the total GLA could be a rule of thumb for us. But that is a very general rule. It depends on the center, the guest profile, and the general brand mix. However, F&B is clearly a focus area for VIA Outlets, and we follow the same strategy here as we do with our brand mix: We combine international F&B offers with local offers.
ACROSS: IS LEISURE AND ENTERTAINMENT ALSO LIKELY TO BECOME A FOCUS AREA?
AMBAGTSHEER: We do not plan to create GLA for leisure, although we do have leisure in our centers. The most prominent example is Mallorca. There, we have a considerable cinema and some leisure activities, but that is due to the outlet’s history, and it is performing well. I do not think it is the right strategy for the outlets themselves. I believe that leisure and entertainment could undoubtedly strengthen the destination of an outlet center. We see that the cinema in Mallorca is a crucial footfall driver and is also helping F&B. Still, despite the positive experience, it needs to be created around the outlet center, not inside the center.
ACROSS: WHAT IS YOUR STRATEGY TO ALSO SECURE FUTURE GROWTH?
AMBAGTSHEER: We are very optimistic about VIA Outlets and the outlet industry. We see both: a year-on-year growth continuation, and on the other hand a more demanding consumer, and challenging economic conditions. Double-digit growth in 2021, 2022, and 2023 proves that we are good at finding answers also in challenging circumstances. We will not reach double-digit growth this year, but hopefully, we will see high single-digit growth. There is no reason to think we cannot continue doing that in 2025 and 2026. Our expansion projects are key growth enablers. Besides, to keep working on that VIA strategy, enhance our brand mix and offers, and strengthen our F&B offer, our goal is to get more premium brands to our centers. Premiumization is part of our strategy. This applies not only to the brand mix but also to the whole guest experience.
ACROSS: WHAT WILL DRIVE THE OUTLET BUSINESS IN 2025?
AMBAGTSHEER: There will not be significant changes. Besides the already discussed topics, we at VIA Outlets will focus a lot on Omnichannel, which is unique within the industry. Omnichannel is a crucial way to find answers to people’s behaviors and wishes. We did launch an online platform because, nowadays outlets are an integral part of a brand’s omnichannel strategy. Our online platform is live and trading in Batavia Stad, with about 40 brands. This is the first step into what we believe could be the future of the outlet channel.
Otto Ambagtsheer
Otto Ambagtsheer is the Chief Executive Officer at VIA Outlets.
