What Retailers Are Needed In Order To Develop An Outlet Center?
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We are often asked what retailers are needed in order to develop a center. While there are many successful outlet centers that have retailers in common, there is no one model, or retailer, that will completely determine the success of a development.
A look at some of the best outlets in the world shows a variety of setups. Some include high-end, lesser-known niche fashion labels like at Marni Outlets in Italy. Some include a mix of niche labels next to big guns like Burberry and Coach. Some of the top outlet malls draw a crowd with discount beauty and home goods stores, and some keep it fresh with temporary pop-ups throughout the year offering new attractions and deeper discounts.
Last year Consumer Reports surveyed more than 17,000 readers and found that variety is best. “Among the top choices: Jockey and Carter's (clothes, underwear), Harry & David (food), Corningware (kitchenware), Izod and Van Heusen (clothes), and Coach (accessories).” This demonstrates that customers are interested in shopping at a variety of stores for a variety of products when they head to an outlet center.
Traditionally outlet malls have been anchorless. The anchor store wasn’t part of the model like in traditional retail malls, and wasn’t necessarily needed. But if we consider the large amount of leasable space – one quarter – occupied by retailers with stores that are 16,000 square feet or bigger, we can see that even this rule is changing in the industry.
There is no magic formula for success. A developer needs to understand the region and the consumers they are building for. For an outlet mall to succeed there should be a variety of interesting retailers that appeal to the audience in the area. They must also be far enough away from their own full-price retail stores that they don’t cannibalize their sales.
