By Otto Ambagtsheer
In order to stay innovative, the placemaking industry must embrace good collaboration between brand partners, developers/investors, architects, local communities and governments. Balancing innovation with purpose while keeping the guest experience and the commercial aspect central will be key. To name a few:
- Outlet centers must provide engaging, experiential environments to attract guests, especially to have a clear point of differentiation vs. the pure online players. Brand partners and consumers expect stores tailored to their specific needs, adding pressure for unique designs.
- Centers will also need to set budget aside for more climate-responsive design. There is a growing emphasis on energy-efficiency, low-carbon, and climate-resilient infrastructures, as well as stricter environmental regulations to budget for.
- While consumer confidence is improving with easing inflation, political and economic uncertainties in countries like Poland and Germany temper optimism. Wage growth and stabilized inflation are expected to strengthen spending in 2025, though recovery to pre-pandemic levels remains gradual.
- And last but not least, attracting and retaining talent to work in retail remains challenging, particularly in outlets as these locations often face a competitive labor market due to their location on the outskirts of larger cities.
VIA Outlets’ challenge in 2025 will be to expand on this year’s momentum, which means focusing on the execution of our two main expansion projects in Landquart Fashion Outlet and Vila do Conde Porto Fashion Outlet while continuing the execution of our 3R remodeling, remerchandising, and remarketing strategy in our other centers to keep the brand and guest experience fresh and continue to deliver strong performance.
Outlet centers will continue to outperform full-price retail if they keep embracing initiatives that shift the focus from discount-driven to experiential, guest-focused experiences to remain relevant and be the preferred onestop shop.
Also, the return of global tourism will remain a powerful growth enabler for the outlet industry. With more people traveling again, led by intra-European and American visitors, though Chinese tourist numbers lag behind pre-pandemic figures, outlets located near popular tourist spots or busy travel routes are seeing more tourists as they seek unique shopping experiences, premium brand offerings, and exclusive discounts.
The shifting consumer behaviors, technological developments, and sustainability priorities will be influential on how we need to adapt our commercial spaces. One is omnichannel retail, which is becoming a cornerstone in the strategy of tomorrow’s outlet centers. The centers will remain social spaces where guests can experience products in person, while leveraging digital services like click-and-collect or in-store returns for online purchases brings another layer of convenience and interaction with brands.
To drive success in the outlet shopping industry, focusing on the guest experience is paramount. This involves offering a curated mix of premium brands while embracing personalization and inclusivity to cater to everyone. Creating digitally enabled, community-focused spaces can enhance engagement and build loyalty.
Otto Ambagtsheer
Otto Ambagtsheer is CEO of VIA Outlets, and Member of the ACROSS Advisory Board.
