A stagnation of the concept, in the form of theme-based models dedicated to clothing brands, was announced at the end of the 1990s. Today, the Factory Outlet Centres wish to offer diversity and a large number of projects deploy a more “fragmented” offer. In addition to those who highlight a «distribution / culture / services / leisure» package, we note that proposals to open new outlets wish to appear as real responses to economic and social issues in the territories concerned.

{Without regulations specifically for them, brand centres or factory stores must meet installation and/or functioning conditions. These are more or less strict depending on the country. For instance, in the European Union countries fall into two different categories: those where the projects to set up new outlets or to extend existing outlets are subject to a specific authorisation (case of France), independent of the building permit, and those, fewer in number, where the projects depend solely on the issue of the building permit (case of the United Kingdom).}

{{{In Germany}}}
The setting up of brand centres must comply with requirements defined, on the one hand by the federal law on territorial planning and the series of laws relating to construction and, on the other hand, by development programmes for the Länder. The main goal is to ensure sustainable development of the territory, combining socio-economic requirements with ecological stability.
_ Advertising rules are applicable for all direct sales from factories to consumers. In addition, as regards the running of the company, rules on opening hours and price display are identical to those applicable to any sales establishment.

{{{In Belgium}}}
The legislation applicable to factory stores is the law of 29 June 1975. This law specifies that an authorisation must be obtained for any opening of a new store or extension of an existing store. It divides the Belgium territory into 2 areas (urban and rural) and, based on this distinction, entrepreneurs may or may not need to obtain a socio-economic permit for their project.
_ For rural areas, a permit is needed for all commercial areas exceeding 750m² of commercial floor area and /or 1 000 m² of gross built area. For urban areas, the same permit is necessary when the net commercial area exceeds 1500 m² and/or when the gross built area exceeds 3 000 m². The decision to issue or otherwise a permit can take more than 6 years.
_ The procedure put in place by the Law of 1975 on commercial establishments only provides for recourse in the event that the Comité socio-économique pour la Distribution [Socio-Economic Committee for Distribution] issues a favourable or partly favourable opinion on a file. The recourse files are then examined by the National Commission and the Interministerial Committee for Distribution.

{{{In Spain}}}
The law of 15 January 1996 introduced certain rules with the aim of making the commercial sector more stable. Like France, the Spanish government had implemented drastic measures to freeze the progress of modern commerce.
_ Current regulations are more consensual. It is the independent communities that are responsible for their application. Consequently, town councillors play a major role in commercial urbanism.

{{{In France}}}
The opening of large retail centres is more strictly controlled by the Raffarin Law of 5 July 1996, including the concept of factory store. An authorisation is required for the installation of any retail outlet with a sales area exceeding 300 m² and extensions of stores when their total area exceeds 300 m².
_ Applications are examined by the CDEC (Commission Départementale d’Equipement Commercial or Departmental Commission for Commercial Installations, composed of 7 members of whom the Prefect who chairs the Commission). The Commission has four months to rule on the file. In this way the project can be authorised in full, in part or refused. In the case of dispute of the decision, an appeal procedure can be launched within two months by the Prefect of the département or at least two members of the CDEC, with the CNEC (Commission Nationale d’Equipement Commercial – National Commission for Commercial Installations). This Commission is composed of four high government officials and four key figures competent in the field of territorial development or distribution, all appointed by the Minister for Commerce for six years. The CNEC also has four months to rule. Finally, a last appeal is possible to the Conseil d’Etat.

{{{In Portugal}}}
According to the law of 20 August 1997, it is compulsory to obtain an installation authorisation for large commercial units. As regards the installation of a brand centre, the threshold is fixed at 20000 m². The request is filed with the General Division for Competition and Consumption (DGCC). The authorisation by the Ministry of the Economy is only granted if the brand centre’s market share on the territory (mainland) is less than 15 %. Then the start-up of activity is subject to a functioning authorisation issued by the DGCC which checks whether the general conditions are fulfilled.

{{{Existing centres in Europe
(april 2008)}}}

{{{ {{Main Tendancies (may 2008)}} }}}

-* Sales area : more than 2.1 millions of sqm
-* Number of centres : 158
-*Evolution of the number of the centres between 2002 and 2007 : more than 50%
-* Main reception countries of the new centres : South Europe (Spain, Italy), CEEC (Hungary, Poland)

{{{ {{European countries Top 5 (may 2008)}} }}}

[More information->http://www.magdus.fr/spip.php?page=centre&lang=fr]}}}

The  »Factory Outlet Centers » concept was imported from the United States where there are more than 340.
After a first wave of penetrations, concerning more particularly France during the 1980s, the concept spread to continental Europe from 1993 onwards.
Early in the 1990s, Clarks, the shoe manufacturer based in Great Britain, seeking both a use for buildings adjoining the factory and a solution to its excess stock problems, opened its first factory store and sold its excess merchandise at reduced prices. Seeing the success of this new store at the factory exit, he decided to increase the commercial offer by adding an entire “village” of stores of the same type.
Clarks then drew inspiration from the American concept, creating the first  »Factory Outlet Center »,  »Clarks Village » in Street (Somerset) in 1993.It was on that date that “ Marques Avenue”, France’s first new generation factory store centre, opened in Troyes.

{{More information about the sector:}}
-*Innovative centres and projects (2007)

{{{Evolution of the concept in Europe : from Factory Outlet Centres to outlet villages (2009)}}}

{{[Download the figure : Evolution of the concept in Europe}}->http://www.magdus.fr/pdf/concept_evolution_in_europe.pdf]

Factory Outlet Centres consisted only in selling unsold articles, but the commercial concept has evolved since the mid-1990s. The progressive orientation of the concept towards “fun shopping” has considerably strengthened the tourist dimension of Factory Outlet Centres. Four generations of centres can be distinguished (cf. figure). This typology, which brings to light the qualitative evolution of the concept, is based on four criteria: the marketing strategy of the centres, their architecture, their location as well as their customer base. All European countries did not experience these four generations of centres – for example, only France has actually experienced the first generation.

{{More information only in french:}}
-*Evolution du concept en Europe (2004)
-*Centres de marques : les nouvelles approches du concept en Europe (2004)

Whilst the concept offers variants in its general aspect (mixed distribution/culture/leisure centres, distribution centres open to several sectors of activity, centres specifically reserved for personal equipment, etc.), there is a common denominator among these different formulas: the brands. But for a centre to function it is not a question of attracting just any brand type. There is, in fact, a real brand typology that must be taken into account in reasoning when planning a centre (from the international brand to the young brand of the moment). The brands fulfil different “functions”: some strengthen a centre’s renown, others tend more to generate visits or make the centre part of a hot trend.

In France, whilst a few industrialists still refuse to see their brands distributed in these specialised centres, there are many who sell their brands through them. This sales method is therefore becoming a real link in the distribution chain.
The quality of the commercial offer makes the concept particularly attractive in the eyes of consumers. The latter do not hesitate to travel considerable distances to purchase in these stores, their motivation stemming from the possibility of purchasing brand products at prices announced as 30 to 50% lower than in traditional distribution channels.
The offer mainly concerns articles of clothing (ready-to-wear, underclothes, lingerie, shoes, accessories) as well as household articles (decoration, household linen, tableware).

{{More information only in french,}} [click here->http://www.magdus.fr/Une-forme-de-distribution-atypique]
-* Main chronological milestones;
-* History of factory stores;
-* Parallel between the development of Aube groups and national centres;
-* In Troyes: «From hosiery to factory stores» (…)

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_ Contact : [->accueil@magdus.com]

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Crédit photo : Trinité photos

{{François Baroin, Député Maire de Troyes, Président de la CAT}}

{{Dominique Lemelle, Président de la CCI de Troyes et de l’Aube}}

{{Le lieu du colloque : l’Espace Argence}}

{{Les débats en ateliers thématiques}}

{{Les séances plénières}}

{{Magdus Awards}}

{{Magdus Party}}

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Contact : [->accueil@magdus.com]

{{Marina MARTORANA}}
_ I am a journalist and work for Corriere della Sera. I have written books on factory outlets. According to a news article, Italians are big shoppers. FOC is an outlet centre that has created a lot of employment in Italy. It is involved in tourism and lies near highways. Going to FOC is a leisure activity for families, its consumers are mainly upper class.
Different situations co-exist in Italy. There are major factory outlets like Troyes, Mac Arthur Glenn, etc and there are palaces containing ten factory stores inside.



{{From the floor}}
_ What is the total surface area of the 30 outlets?



{{Marina MARTORANA}}
_ 322 000 m²
_ In Italy, there is no observatory that produces figures; these figures were given to me by Saudatex.
There is only one exclusively Italian operator, Fashion District, all the other are mixed.



{{From the floor}}
_ When the first factory outlet opened in Italy (Serra Valle, McArthurGlen), there already were several in France. But today, the number of factory outlets in Italy has increased.



{{De la salle}}
_ The Italians have imported the experience of others and can therefore do better.



{{Marina MARTORANA}}
_ Promos is an important construction operator of outlet centres. 8 years ago, he came to Troyes and discovered French architecture. He went back to Italy to build FOC.
In Italy, promoters chose an area to build an economy and decided to build outlets there. For Europeans, Italy has imported these ideas from the United States.



{{Roberto PACIFICO}}
_ I am a journalist. I will try to tell you about FOC in Italy, speaking not as an expert on FOC but as a writer for the monthly magazine Mark Up, recently acquired by the famous financial newspaper, Soventi Patroli.
In terms of administrative tools and regulations, FOC tend to consume more new land than shopping centres. In Italy, there are 40 new projects of shopping centres, and more than 1/3 are refurbishment projects so they tend to use former industrial areas to be redeveloped. It is called ‘brownfield’. The “greenfield” tends to use new land on outskirts of big cities, like FOC, and may create a problem for entrepreneurs. In Italy, there are not more than 7 big shopping centres to which many customers from different regions are drawn. FOC offers many different brands, both medium and high brands. Questions like the speed of installation of both type of centres, shopping centre and outlet, is an interesting topic to discuss.



{{Henrik C. Maris}} (Factory outlet consultant)
_ There is a lot of land in Italy. Factory outlet is a leisure shopping activity, with excess stock and excess shopping. I see the need for organised FOCs. Italy has the highest density of stand alone outlets and they need to be more organised from the current sale of stocks to the backdoor of distribution centres. The ones that claim to offer 20% discount, but in fact sell at 30-50 % discount, should be closed. Lastly, I was surprised to see that the Italian customers are part of the upper class. In my opinion, they’re more part of the educated middle class. Concerning the question above, the outlets are not in competition with the shopping centres. These have two different runs. Shopping centres are in competition with the town centres. An outlet is more like a fun park and weekend activity.



{{Roberto PACIFICO}}
_ Thank you for your intelligent remarks. As an irregular customer of FOC, there is confusion and pressure about the cheapness of FOC brands. FOC is indeed a leisure format, its important driver being tourism.



{{From the floor}}
_ It is a question of the real number of FOCs already existing. Currently they are between 12 and 14 with a critical mass of shops in the centre. There are still regions in Italy where Italian tourists will go to outlets.



{{Marina MARTORANA}}
_ In Italy there are a lot of realties besides FOC. In Piemont, there is a small outlet with a 3000 square metre showroom with 10-15 brands inside. To understand the situation in Italy, you need to look at the big names but also at the development of small centres. Even if they are small centres they can be called ‘outlet centres’.



{{Roberto PACIFICO}}
_ The difference between the growth of shopping centres can be explained historically. The shopping centre was born out of the big food retailers in the 80s, early 90s. Currently, the large shopping centres in Italy are owned by financial operators. Will shopping centres survive with or without food anchors? In my opinion, shopping centres will not leave out the food aspect.



{{From the floor}}
_ A multi-brand shop is a shop with many brands and its own counter. Factory outlet is about to get rid of the excess stock for the highest possible price.



{{Marina MARTORANA}}
_ The multi-brand is another subject. Factory outlet is when owners place their own stores inside. In Italy you have many of these mini factory outlets.



{{From the floor}}
_Italy is very interesting with the amount of goods inside its borders, some are organised and some not so organised. It would be a good scheme to have all these brands organised in factory outlets.



{{Marina MARTORANA}}
_ There are two factory outlets in Italy that concentrate on the big brands and big discounts, in the Tuscany and Piemont regions. In Seravalle, you can buy one litre of shampoo of Bottegaverde for 1 euro, it is not a big brand but it can be found in a big outlet.



{{From the floor}}
_ It is not a question of the price of the product. Bottegaverde is a good product and does not need to be pricy. Brand is a brand in people’s minds. Masotto will hopefully do better than Malboro classics and Franco Ferré, and bring their Scandinavian schemes into the factory centres. When will it happen and what will the future be is my question.

The European Factory Outlet Observatory lead an economic inquiry with the directions of Factory Outlet
Centres in Southern Europe in January- February 2009 to collect their balance sheet of the second halfyear
2008. This synthesis brings to light the big tendencies of the activity of the centres during this
period. In an unfavourable cyclical context, in particular during the second half-year 2008, it seems that
the majority of the Factory Outlet Centres in Southern Europe had a good activity.

{{Read the complete report:}}

{{{ {{Existing centres in France
(january 2009)}} }}}

In France, between 1993 and 2007, the sales area dedicated to FOC doubled, from 123.000 sqm (7 centres) to 266.000 sqm (20 centres).

{{{ {{Evolution of the concept in France between 1993 and 2007}} }}}
|{{Year}}|1993|1997|2002|2005|2007|
|{{Number of centres}}|7|12|17|19|20|
|{{Sales area (sqm)}}|123000|152000|216000|251000|266000|
|{{Estimation turnover (€ incl. VAT (Millions d’€)}} |320|426|635|766|800|

{{{ {{Factory outlet centres in France, june 2008}} }}}
|{{ Number of centres }}|20|
|{{ Selling area (sqm)}}|266.000 m²|
|{{ Number of commercail units }}|1 200|
|{{ Authorised projects }}|126.000 m²|
|{{ Projects known to be under consideration}}|more than 100.000 m²|
|{{ Estimation turnover ( € incl. VAT)}}|800 M€|
|{{ Estimation number of employees}}| 5.200|
|{{ Estimation number of consumers (in millions}}|8|

More information about the situation in France, but in french, click here
[http://www.magdus.fr/Situation-france->http://www.magdus.fr/Situation-france]

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_ Contact : [->accueil@magdus.com]