Outlets on the rise: low prices and experiences drive sales
by Chiara Beghelli and Marta Casadei
4' min read
4' min read
According to Bcg's latest consumer sentiment study, clothing 'earns' the black jersey in terms of shrinking spending by European consumers (-20%). And luxury follows close behind with -13%, thanks to the retraction of the most price-sensitive customers, which have risen uninterruptedly since 2020. So-called 'aspirational' consumers, turned away from the high-end, are increasingly turning to outlets, where tags are 30-70% lower than the retail price and further discounts are reserved for loyal consumers. While structures and shopping experiences are being fine-tuned to be increasingly competitive.
This is demonstrated by the figures of all the most important players in the sector, starting with McArthurGlen: the British group with 5.5 billion euro revenues, which has four Designers Outlets in Italy (Serravalle, the first Italian outlet; Noventa di Piave, Castel Romano and Marcianise) recorded a 4 per cent increase in sales in Italy between January and October. In the first half of the year, Neinver, a Spanish company that manages 21 centres in Europe, recorded an increase in total sales to 763 million, +8% compared to the same period last year. Between July and September, in the Italian facilities, things seemed to have gone even better: 'In the third quarter of 2024, sales at Vicolungo and Castel Guelfo The Style Outlets recorded double-digit growth compared to the same period in 2023,' said Eduardo Ceballos, asset management director at Neinver. 'Despite a slower first half of the year, sales grew particularly in the F&B, beauty and sports segments. We expect this trend to continue in the latter part of the year. As far as the turnout in the Italian centres is concerned, we expect to end the year with almost 7 million visitors'.
On the other hand, more than 20 million people have already visited the six Italian outlets of Promos (Brenner Outlet Centre, Mondovicino Outlet Centre, Valmontone Outlet, Città Sant'Angelo Outlet Village, recently joined by Brugnato 5 Terre Outlet and Barberino Outlet), which today describes itself as the 'Italian leader in the outlet sector with a 25% share of the Italian market'. "Generally speaking, at the group level, 2024 is outperforming 2023, although it is not possible to make an exact comparison, considering the important expansion of the perimeter under management this year," says Filippo Maffioli, Managing Director of Promos. "We expect to close the year with an important positive sign, which confirms the growth trend of the outlet sector, a formula that performs well and is growing continuously. To support the development, Promos has planned investments for the expansion of some structures, including the Città Sant'Angelo Outlet Village, and for the creation and expansion of food courts such as those in the Brenner, Mondovicino (work is starting), Brugnato and Barberino outlets.
On 15 October, Scalo Milano Outlet & More, a Milanese reality owned by the Lonati group, also presented the 40 million euro expansion that brought its surface area to a total of 44 thousand square metres, with 27 openings that increased the number of shops to 180. And if 2023 closed with more than 3.5 million visitors, 2024 is expected to touch 4 million, while in the first six months of the year turnover has already risen by 7%. However, after more than 20 years of presence in the area, outlets have evolved and made themselves capable of attracting customers not only with prices, but also with increasingly sophisticated experiences and services. For example, "elegant spaces with a unique design, capable of elevating the quality of time and slowing it down", as ceo Chiara Conticelli states, are among the elements of the success of Land of Fashion's five villages (in Franciacorta, Valdichiana, Mantua, Palmanova and Puglia, with a total area of 150 thousand square metres), which expects to close 2024 with 17.5 million visitors: "We wanted to create oases with a strong identity, and with this in mind, this year too we have renewed areas, most recently the Food court and the Gallery of Franciacorta Village. We want to make our Villages increasingly distinctive and memorable, creating scenarios integrated with the territory that enhance the beauty of the experience for guests and tourists alike".
"Our malls are located in high-level tourist destinations, becoming an integral part of the travel experience," notes Giorgio Motta, general manager of The Mall Luxury Outlets, which has two properties in Florence and Sanremo. "This is why we work in synergy with luxury hospitality and local tourism players, to create together complete travel proposals that allow people to get to know and appreciate the excellence of the area in depth. We also have a great responsibility: our malls are places where millions of guests of many different nationalities pass through every year, and we therefore have the desire that they return home not only with exclusive fashion products, but also with contents that can enrich them personally. This is why we are constantly working to organise exhibitions and events that bring together different experiences and cultures, with the idea that our malls can be a place where it is always worth investing your time.
