Fashion Retailers Show Heightened Interest in Thriving Outlet Centers
Throughout 2023, VIA Outlets has experienced a notable surge in leasing activities across its expansive portfolio spanning Europe. Despite challenging market conditions prevalent in traditional retail segments, both new and existing premium brand partners are actively establishing new stores or expanding their gross lettable area (GLA) within VIA Outlets’ centers.
This trend underscores a shift in focus towards outlet centers, driven by their exceptional sales performance and growing customer footfall.
Recent data from Cushman & Wakefield’s Q3 2023 Outlet Market Commentary further substantiates this trend. The report highlights a significant year-on-year sales growth averaging 16.9 percent across the European outlet center market during the first half of 2023, compared to H1 2022.
Concurrently, average footfall increased by 11.6 percent over the same period. Notably, outlet centers in the Iberian markets experienced the strongest sales performance, witnessing a remarkable 19.2 percent surge in the first half of the year. Similarly, Germany saw the highest year-on-year increase in total footfall, rising by 16.5 percent.
VIA Outlets Elevates Brand Diversity with Over 260 Leasing Deals in 2023
In the span of this year, VIA Outlets has significantly fortified its brand portfolio through the successful execution of more than 260 leasing agreements. These agreements encompass a spectrum of leasing activities, including the inauguration of new stores, lease renewals, expansions (upsizes), as well as strategic reevaluations involving downsizing and exits.
Jorge Sánchez Mera, the Head of Leasing at VIA Outlets, expressed his satisfaction, stating, “Throughout the year, we’ve welcomed a diverse array of dynamic brand partners eager to harness the growth opportunities inherent in the outlet sector, particularly within the VIA Outlets framework.
The notable trend of our existing brand partners expanding their leased areas by either inaugurating new outlets or expanding into larger spaces to leverage their robust performance underscores the robustness of our outlet model.”
Expanding Brand Diversity: VIA Outlets Welcomes New Partnerships Across Europe
VIA Outlets, with its 11 outlets spread across Europe, has proudly announced the addition of several esteemed brands to its ever-growing portfolio. These new partnerships mark a significant milestone in VIA Outlets’ commitment to providing diverse retail offerings to its customers. Here’s a glimpse of the notable brands making their debut across various VIA Outlets locations:
Zadig & Voltaire, a renowned fashion label, selected Batavia Stad Fashion Outlet and Freeport Lisboa Fashion Outlet as the venues for its inaugural stores within the VIA Outlets network.
Selected Femme/Homme, a division of the Bestseller Group, launched its first outlet stores globally at Hede Fashion Outlet and Oslo Fashion Outlet, with plans for further expansion at Zweibrücken Fashion Outlet later this year.
Spanish footwear brand Hoff and French premium outerwear label Jott made their mark by choosing Sevilla Fashion Outlet for their maiden outlet stores.
Five Guys, the popular American burger joint, opened its first VIA Outlets location at Zweibrücken Fashion Outlet, with another outlet scheduled to launch at Landquart Fashion Outlet in the first quarter of 2024.
Holzweiler, a Norwegian fashion brand, and Steen & Strøm, a premium Scandinavian department store, unveiled their debut outlet stores at Oslo Fashion Outlet.
Fusalp, a premium French ski brand, joined the VIA Outlets family at Landquart Fashion Outlet.
Moreover, VIA Outlets welcomed several other esteemed brands into its fold, including Name It (Batavia Stad Fashion Outlet and Zweibrücken Fashion Outlet), Sport Lisboa e Benfica (Freeport Lisboa Fashion Outlet), and Unleash Your Nature (Zweibrücken Fashion Outlet).
Additionally, VIA Outlets experienced a surge in demand for larger outlets from existing partners. Notable expansions include Michael Kors, Only, New Balance, Gant, Boss (with a significant increase in GLA at Vila Do Conde Porto Fashion Outlet), Lacoste, and Swarovski. Lacoste, for instance, inaugurated its 10th store with VIA Outlets at Hede Fashion Outlet in Q3.
Michael Kors continued its expansion spree, with the opening of its fifth store in the past three years at Mallorca Fashion Outlet. Karl Lagerfeld also marked its presence at Mallorca Fashion Outlet in Q3, adding to its nine stores within the VIA Outlets network. Furthermore, Rituals expanded its footprint across multiple outlets, while The North Face extended its reach with new openings at Batavia Stad Fashion Outlet and Landquart Fashion Outlet.
Meeting Leasing Demands: VIA Outlets’ Expansion Initiatives
As VIA Outlets experiences a sustained surge in leasing demand from its brand partners, the company remains committed to enhancing its outlet centres through extensive remodelling and expansion projects. These efforts are part of VIA Outlets’ ongoing multi-million euro 3R strategy, which focuses on remodelling, remerchandising, and remarketing its properties.
In October, VIA Outlets celebrated the opening of a 4,000 square meter extension at its Sevilla Fashion Outlet—a culmination of a €30 million project initiated since its acquisition.
This comprehensive modernization effort aimed to position the centre as the premier outlet destination in western Andalusia. Notably, sustainability was a key focus throughout the modernization process, enabling Sevilla Fashion Outlet to achieve a coveted BREEAM [In-use] Excellent rating for its low-carbon management model and adherence to best circular on-site practices.
Looking ahead, VIA Outlets has ambitious plans for further expansion and renovation. Projects are slated to commence in 2024 to expand Vila do Conde Porto Fashion Outlet in Portugal by 6,500 square meters and add 4,700 square meters to Landquart Fashion Outlet in Switzerland.
Concurrently, a comprehensive remodelling project is set to begin at Freeport Lisboa Fashion Outlet, aiming to elevate the centre’s premium appeal. This transformation will include the revamping of existing facades, the introduction of new double-height facades at the entrance, and the incorporation of captivating water features to enhance the centre’s ambiance.
