By Joan Rouras
The growth trend has continued this year, with positive results throughout NEINVER’S outlet portfolio with 16 centers in France, Germany, Italy, Poland, Spain and the Netherlands. We closed the first half of the year with brand sales outperforming last year’s record results by 8%. Maintaining the double-digit growth of recent years will not be easy, although double-digit sales increases have been registered in several months and assets.
Amsterdam The Style Outlets, the portfolio’s fastest growing center, registered a 16% sales increase in the first 9 months of the year and a 23% rise in sales densities in September, whilst Halle Leipzig The Style Outlets in Germany has been reporting double-digit growth since 2021.
Calendar highlights include a 27% sales increase during our “trademark events” (Jungle Night, Super Thursdays, 80’s Party,…) in H1 2024 compared to 2023. These strategic events which we run throughout the year across our portfolio are creating powerful commercial opportunities for our retailers. For instance, the Jungle Night’s Spring edition sales figures were up by 38% on last year’s edition. Besides exceeding our brand partners’ performance expectations, these events are proving highly effective in enhancing consumer engagement and loyalty.
Other metrics also show sustained performance. During H1 2024, average spend per customer was up by 8% and sales density approached double digits. Occupancy rate remains high across the portfolio, averaging 97%, although we expect a slight increase by the end of the year. We are on track to close out the year with 100% occupancy across our entire outlet portfolio in Spain and are making solid progress in newer centers like Amsterdam and Halle Leipzig – the German center has shown a significant uptick in occupancy in the last 2 years – where we expect to reach full occupancy by the end of 2025. In all, a very positive picture and a clear indication that our visitors are spending their time and money at our centers and that our value proposition is appealing to retailers.
THE CHALLENGE OF DRIVING SALES AND MAINTAINING EXCELLENT OCCUPANCY RATES
Maintaining these performance levels is a huge challenge. The market is very competitive and consumers are spending more on experiential purchases like concerts, sports events, new food experiences and travel. The increasing competition for people’s time is a reality, and part of the strategy involves securing the ideal brands that resonate with our visitors and providing the enjoyment factor.
Brands are looking for a strong business case and value proposition. They expect us to understand their performance needs and they want a real conversation and collaboration that will yield the best solution. Our dedicated teams, each with different expertise (in marketing, retail and leasing), follow up with our 47 top brands to offer them data-driven insights and performance indicators, supporting their growth needs. With a nearly 30-year track record in the outlet sector, our specialised management, excellent knowledge of the schemes and the market, and capacity to anticipate and be flexible and agile have proved a winning retail formula, and brands feel comfortable working with us.
RETAILERS’ GROWING DEMAND
We continue to see increased demand from retailers for space. Last month alone we had 23 openings across Europe. Our portfolio offers them a chance to spread their footprint and acquire new customers, try new product lines and grow their business. Outlets are part of their omnichannel strategies. Last year we signed over 400 leases, including new additions and expansions. Examples include quality names such as Rituals, Tommy Hilfiger, Boss, Lacoste, Levi’s, Under Armour, Munich, The North Face, Marc O’Polo, Dockers, Villeroy & Boch, Tempe Inditex and Bestseller Group brands.
This year, we have signed 16 new deals for Amsterdam The Style Outlets, including Asics, Tommy Hilfiger, Calvin Klein, Duuo, Outly and Il Lanificio. Operators confirm they have had a good year, proof of which is that Jack & Jones, Skechers, Only and Desigual have enlarged their stores.
Upsizing has become a usual request from top brand partners, who feel reassured by our centers’ proven performance track record and know that consumers today expect more from their in-store shopping experience. In fact, investment in more high-quality stores has also accelerated in recent years. Often, we are seeing the same aspirational experience as high street stores.
We continue to seize the opportunity to invest in creating appealing spaces by attracting new brands and diversifying the retail offer with new categories. For instance, we want to include bookshops in the retail mix. In fact, our idea extends beyond retail as it also adds to the experience through on-site events such as author meetups or workshops. We are not competing only on mix but also on value, introducing, among others, new experiential moments, with F&B playing an ever more important role.
Amsterdam The Style Outlets, including Asics, Tommy Hilfiger, Calvin Klein, Duuo, Outly and Il Lanificio. /// credit: NEINVER
FOOD FOR THOUGHT
Food is key in our growth strategy. It adds to the shopping experience but also provides opportunities for increased revenue and customer engagement. We have a clear F&B roadmap and are working on different projects to enhance the food offer at our centers, from allocating more food and beverage space and revamping the food areas to bringing more variety to the dining offer.
Last year in Viladecans The Style Outlets in Barcelona – an open-air center that benefits from tourism, day visitors and the surrounding business parks – we revamped the food plaza and diversified the food offer, which today features 15 dining options.
A more recent example is Vicolungo The Style Outlets, between Milan and Turin, with a strong catchment area and robust tourism. Our approach was to give visitors options for making a needed stop when they shop, but also to provide enjoyment and quality time. We reorganised the space, increasing the visibility of the food area, strategically relocating some of the units and adding new restaurants, which brings the F&B share up to 12%. Some of the existing names and additions are Roadhouse, Love It, Rosso Pomodoro, Signorvino, the gourmet space ANTONINO, il Banco di Cannavacciuolo, Befed, Calavera, Parma Menu and Miscusi.
Also in Italy, we are working on revamping F&B and improving the landscaping at Castel Guelfo The Style Outlets, located close to Bologna. Besides creating a food plaza, we are doubling the food area with the arrival of Roadhouse, Billy Tacos, I Love Poke, Love It, joining the current offer: Farinella, Pastaria and Kimbo. Having the right food and beverage offer in place can really make a difference in strengthening this center as a destination.
LOOKING AHEAD
To continue this success story, we must bear certain aspects in mind such being very consistent with the strategy and goals we have set and continue to bolster some initiatives put in place in years past while also testing new ones. We must continue working altogether in the same direction, supporting our retailers’ strategies while continuing to evolve our offer, signing exciting new brands that bring new customers to our centers. Keeping our centers vibrant requires investing on amenities, services and experience to increase frequency and ensure customers spend more time with us. The key is to never stop evolving, a common feature of the outlet sector in general.
Joan Rouras
Joan Rouras is the Leasing & Retail Director at NEINVER
