The operators: specialists or generalists (1st July 2008)

|{{Operators}}|{{Number of centres}}|{{Selling area in sqm}}|
|McArthurGlen|17|367.100|
|Realm|12|167.550|
|Neinver|10|139.000|
|Value Retail|9|125.600|
|Freeport|3|113.200|
|Concepts & distribution|8|103.300|

On the 1st July 2008, these 6 operators shared :
-* 37% of the existing centres in Europe
-* 47,5% of the european sales area

{Factory stores capture 2.3 % of the French clothing and shoe market and represent a little more than 1% of the turnover achieved by the retail sector. This distribution channel therefore remains marginal, even if we can consider that it has found its customer base.}

{{Distribution among men, women and socioprofessional categories}}
_ Originally confined to seconds and ends of series, the array of products offered in factory stores has widened and the ranges have greatly increased, attracting a much wider palette of consumers. People with average purchasing power have been joined by those with high purchasing power who, up until recently, were, first and foremost, customers of town centre stores. In Troyes, the average purchase basket is 208 €.

{{The fashion effect}}
_ The desire to consume in these centres is maintained by fashion and the feeling that the concept is rare. Fashion awareness is more noticeable on the women’s market than on the men’s market. Today a woman of 60 years wishes to dress fashionably, In just two years some products can be considered to be out of fashion and, whatever the reduction, will not find a purchaser.

{{Greater volume}}
_ Consumers tend to purchase less expensive clothing. The opening of a new retail outlet generates a necessary reduction in sales by other retail outlets. Consumers demand clear rules guaranteeing in the brand centres the presence of products with real information.

{{Shops and leisure activities}}
_ For many, the future of factory stores is based on an alliance between stores and leisure activities. Consumers increasingly wish to enjoy themselves when they make their purchases one to three times a year. This is why brand centres are appearing near large leisure centres or offer, themselves, fun, sports or cultural activities.

{{The brand and the price}}
_ Consumers are seeking an attractive brand at a competitive price. Operators must offer a balanced selection of brands of world renown, brands linked to a fashion phenomenon and more or less prestigious brands that generate visits…

{{Risks and opportunities}}
_ The questions prompted by the installation of a factory store are linked to a number of issues: territorial planning, urbanism, consumers’ rights and the right to competition. Factory stores today pose the same problems as hypermarkets in the past: major growth over twenty years, negative impact on traditional retailers and town centres. The majority of the projects launched in France are also perceived as challenges in the area of local development and territorial stability: a factor in territorial planning, attractiveness, economic development, job creation and trade tax, or a danger for local traditional retailers.

{{Rare or commonplace}}
_ Should we tighten regulations on the installation and extension of brand centres to prevent them becoming commonplace, thus weakening the concept? The existence of too many factory stores could indeed generate their decline and that of brands. By having recourse to them to sell off excess stock, isn’t there the risk that industrialists will destabilise other forms of distribution?

{{Specificity or generalisation}}
_ Can articles other than clothing and household equipment be concerned by this type of distribution?
_ Must projects for such installations be limited to regions that can justify a strong industrial tradition (Roubaix, Troyes, Romans, Cholet, etc.), as certain local elected representatives demand? With, as a result, a ban on any installation in areas that do not have the right due to economic, geographic and historical reasons, although they have a high tourist potential, for instance southern and south-western France?

{{Town centre or outskirts}}
_ At present town centres are no longer as attractive as in the past. In France clothing consumption is marking a downward trend, which means that new factory stores could lead to a transfer of customers from the town centres to these new structures. The challenge consists in strengthening town centres’ power to attract in order to direct the flow of commercial tourists in their direction.
_ In Troyes, we were able to see the negative and positive effects.
_ In personal equipment, the impact on traditional retailers (in particular on retailers in Troyes town centre) has been spectacular. A real shock wave followed the creation of brand centres on the outskirts. This was expressed in a devitalisation of independent retailers, weakened at the same time (as in all French town centres) by the sudden upsurge in organised retailing (franchise outlets, branches, etc.).
The stores that closed down have been replaced by others and the greater number of service providers in the town centre’s did not prevent banners such as H&M from setting up there. Without factory stores, the town of Troyes would not have welcomed close to 2 million visitors in 15 years in its town centre. This commercial tourism has been joined by cultural tourism due to the town’s historical attractions.

{{History or geography}}
_ The reasons for the geographic localisation of a new centre go far beyond the existence of industrial roots and a textile past: motorway links, density of tourist flows (Marne-la-Vallée), population (Paris region), local purchasing power and the proximity of a foreign market are criteria to be taken into account. It goes without saying that territories are competing today as future locations for brand centres.

{{Stocks or relocations}}
_ The selling of excess stocks tops the list of distributors’ and brand managers’ concerns. These excess stocks represent 2 or 3% of the total volume of the market and between 0.7 and 10% of the volume of the products diffused according to the brands and banners.
_ Three possibilities are offered to a firm that wishes to get rid of its excess stock: destruction of the products, sale to discount stores or sale in factory stores. Factory stores offer the firm the advantage of controlling the distribution and, therefore, protecting the brand and the distribution network.

-* Brand stores are raking it in!
-* Brand centres: What performance for what market?
-* Brand centres in France: How are they evolving?
-* Brand centres: « Risks and consequences of their development?» (…)

If you want more information in french [click here->http://www.magdus.fr/Marche-et-tendances-prix-marques]}}}

————

{{{If you want contact us:}}}[->accueil@magdus.com]

{{{FOC’ sector in Europe}}}

{{The operators: specialists or generalists (1st July 2008)}}

|{{Operators}}|{{Number of centres}}|{{Selling area in sqm}}|
|McArthurGlen|17|367.100|
|Realm|12|167.550|
|Neinver|10|139.000|
|Value Retail|9|125.600|
|Freeport|3|113.200|
|Concepts & distribution|8|103.300|

On the 1st July 2008, these 6 operators shared :
-* 37% of the existing centres in Europe
-* 47,5% of the european sales area

{{{More information about FOC’ sector in Europe}}}
_
[{{Economic surveys}}->http://www.magdus.fr/Fonctionnement-des-centres-de]
_ {Source : European Factory Outlet Centres Observatory}

-*[{{All the studies…}}->http://www.magdus.fr/All-the-studies,1495]

-*{{Study: Which factory outlet centre? The UK consumer’s selection criteria}}

{{Author}} : Georgina Whyatt, Business School, Oxford Brookes University.

{{ Abstract :}} Factory outlet centres are the fastest growing retail format in Europe. This is at a time when many ‘traditional’ shopping centres are suffering from consumer caution and have responded by differentiating their offer. Factory outlet centres are part of this response. There has, however, been little academic research that focuses on this new style of shopping centre. This paper examines what is important to the UK factory outlet centre shopper, and ranks a range of choice criteria to better understand why this consumer visits one such centre in preference to another. Implications for retailers and directions for future research are provided.
_
_ {(r 2007 Elsevier Ltd. All rights reserved.)}
_
-* Read the full version in PDF format

{{{Share of household consumption expenditure on clothing and footwear in 2003}}}

|{{Country}}|{{Share (%)}|
|{{ Greece }}|{{ 10,1}|
|{{ Italy }}|{{ 9,0}|
|{{ Latvia* }}|{{ 8,4}|
|{{ Portugal* }}|{{ 7,1}|
|{{ Cyprus }}|{{ 6,9}|
|{{ Austria }}|{{ 6,9}|
|{{ Slovenia }}|{{ 6,3}|
|{{ Estonia }}|{{ 6,1}|
|{{ Malta* }}|{{ 6,1}|
|{{ United Kingdom }}|{{ 6,0}|
|{{ Spain}}|{{ 5,9}}|
|{{ Lituania }}|{{5,9}}|
|{{ Germany }}|{{5,5}}|
|{{ Netherlands }}|{{5,5}}|
|{{ Belgium }}|{{5,4}}|
|{{ Irland }}|{{5,4}}|
|{{ Sweden }|{{5,2}}|
|{{ Czech Republic }}|{{5,1}}|
|{{ Denmark }}|{{5}}|
|{{ Finland }}|{{4,7}}|
|{{France}}|{{4,5}}|
|{{Luxembourg}}|{{4,5}}|
|{{ Poland }}|{{4,4}}|
|{{ Hungary }}|{{4,2}}|
|{{ Slovakia }}|{{3,7}}|

————

{{ Contact}} : [->accueil@magdus.com]

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» (…)

————

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

-*{{LME: de la réforme des soldes à une libéralisation des ventes de déstockage}}
_ Avec la loi de modernisation de l’économie, le gouvernement s’est engagé à améliorer les conditions d’accès des consommateurs à des offres de prix réduits et à adapter la

{{{« Gold » partners}}}

{{{« Silver » partner}}}

——

{{{Down load the Partnership file}}}

—–

{{{To become a partner, what you need to know}}}

-* A factory outlet conference focused on Europe
-* Targeted discussions and debates
-* A unique forum for exchanging views
-* An event that can’t be missed

{{{Become a partner of the 3rd European Conference and seize a unique opportunity for your company to be involved in this
factory outlet center gathering.}}}

_ This conference will focus on concrete issues facing factory outlet centers and provides you with an opportunity to be involved in informative, targeted, relevant, one-of-akind content.

—–

{{{Down load the Partnership file}}}

—–

{{{Partnership proposals}}}

{{opportunities for visibility. Include you company in conference information documents}}
{{ Program}}
_ This is the key document in the run-up to the Conference, providing the overall and detailed session programs, related activities and general information. It serves as a guide for preparing and registering for the conference (French /English).
_ Published in 4,000 copies, it is sent to the main players in
the factory outlet sector in France and in Europe, in A5 format.

{{Pocket program}}
_ A guide to the 2-day Conference is participants. This document will be participant badges.
_ Published in French and English.

{{Congress bag}}

{{{Several opportunities for visibility. Include you company in informal get-togethers during the conference}}}

{{Coffee breaks, wednesday morning, wednesday afternoon, thursday
morning}}
-* visual identity of your company: self-supporting signs, small flags on tables, pens, note pads, etc.
-* dedicated, exclusive space in the coffee break area table, chairs)
-* other visual presence: to be arranged with Colloquium
-* The partnership will also be announced in the Conference signs.

{{Lunch on wednesday – Lunch on thursday}}
-* your logo on the entrance sign
-* dedicated exclusive space within the lunch area (table, chairs)
-* visual identity of your company : self-supporting signs,
small flags on tables, pens, notepads, etc.
-* distribution of an object of your choice during the lunch
-* other visual presence: to be arranged with Colloquium
The partnership will also be announced in the Conference
signage.

—–

{{{Down load the Partnership file}}}

—–

_ Contact
_ Isabelle Brochot
_ 33 (0)1 44 64 15 29
_ [->i.brochot@colloquium.fr]

—–

{{{More information about the third european conference on factory outlet centres}}}

-* [Presentation->http://www.magdus.fr/Conference-2007]

-* [Program->http://www.magdus.fr/Developments-in-brand-distribution]

-* [Partners in the press->http://www.magdus.fr/Our-press-partner]

-* [Registration->http://www.magdus.fr/Registration-fees]

-* [Hotel accommodation->http://www.magdus.fr/Hotel-reservation]

-* [General information->http://www.magdus.fr/General-information]

—–

{{Gaël THOMAS}}
_ In 2007, office, logistics and trading property covered 260,000 square meters in France, or half the surface area accounted for in 1993. In view of the projects that are either underway, under study or already authorised, this surface area will soon rise to 343,000 m². With a trading surface area of 86,000 square metres and with the major actors of this sector present in the area, Troyes is the European brand centre capital.
France is in fourth position in the European rankings, it will soon be 3rd, and there are a total of 150 brand centres in Europe.

{{Richard BROADHEAD}}
_ Freeport is a European factory outlet developer that exists since 1994. It developed a portfolio of outlet centres during the 90s and early 2000s, including six centres in the UK. In 2003-04 it sold its UK interests. Now run by Carlyle Realm, its business focuses on Europe, namely one in Sweden, Portugal and in the Czech/Austrian border. Freeport specialises in outlets, we find the land, get the consensus, negotiate the contract, build the development, lease it, we launch it and operate it.
I have been with Freeport for 18 months but most of my work experience stems from the retail business specifically Marks and Spencer, which has well equipped me to work on the property side in order to be able to experience both sides of the business.
_ A shopping centre, either it is outlet or high street, will only be judged on how well its operator and developer work in partnership with the retailers.

{{Chris POPE}}
_ Kenmore Property Group is a Scottish co-investing, a trading and development property group, that has been in the business for the past 20 years. Kenmore has offices in mainland Europe since 2002-03 and one in Dubai. It operates across the main sectors in the property industry. In 2005 Kenmore purchased one centre in Germany. In 2004, Kenmore opened the office in Paris which I have run since then. In a shopping centre, either it is a traditional or factory outlet, the manager is the key.

{{Gaël THOMAS}}
_ What are the advantages of brand centres in relation to more traditional shopping centres or other office property from the point of view of a property investor?

{{Chris POPE}}
_ Kenmore is interested in the diversification of its portfolio where opportunities still exist outside the UK, in mainland Europe for instance, which allows for higher returns and sustained cash flows together with opportunities to enhance value through management initiatives and to protect the value, created by the barriers, through entry, such as getting the planning permit. The advantages of building up a portfolio, which brings benefits from economies of scale through which numerous relationships are built, are abundant and are more rewarding than a traditional shopping centre.

{{Gaël THOMAS}}
_ What interested Carlyle, a non-specialist company, in the acquisition of Freeport, an specialist investor?

{{Richard BROADHEAD}}
_ Carlyle, a private equity firm, was amongst many suitors who wanted to purchase Freeport PLC. Freeport PLC shareholders accepted the offer from Carlyle Group for 4 pounds 10 pence of the issued share capital. Freeport shares will be cancelled from listing, trading from the Official List and will be registered as a private company. Carlyle saw the potential in Freeport’s operational expertise combined with Carlyle’s financial know-how to conquer the European market as a private company.

{{Gaël THOMAS}}
_ Can the acquisitions model of companies and promoters specialised in brand centres also be part of a Kenmore strategy to build up a true international network?

{{Chris POPE}}
_ Kenmore is interested in buying assets and at the moment since very few companies specialise in factory outlet markets, we are looking for opportunities to further acquire portfolio of assets. We cannot invest into well managed centres at the value of current market prices, we prefer opportunities at the beginning for which there is still income growth and potential to generate.
_ In terms of amounts, Kenmore is driven by the market. For a successful factory outlet centre, the size of the centre is crucial. A small centre of 10,000 square meters or less, with no potential to be extended, has no interest. However a centre of 15,000 sq. m. or more can offer great potential.

{{Gaël THOMAS}}
_ What differences can be seen today in yields from existing centres and from centres being developed in emerging regions?

{{Chris POPE}}
_ When looking at pre-summer market values, prime year in the UK for an up-and-running cent' », prices were at 5 ¼ cent, whereas in Continental Europe for the same they were at 5 ¾. At the early stages of the development process, when looking at development costs, a year long cost will be much higher.

{{Richard BROADHEAD}}
_ When speaking about opportunities, it clearly depends which market we are speaking of. The UK market is saturated, also part of Portugal’s market except maybe Algarve, however many of the Eastern European markets yield a greater return and have more opportunities to offer which can become successful outlets, such as, Bulgaria, Croatia, Romania, Poland, Ukraine. There are still unlocked potentials in Germany and Central and Southern France. The key is to create well connected local partnerships which will enhance the chance to develop real businesses. Freeport is not looking to sell but to develop, operate and build a European portfolio.

{{Gaël THOMAS}}
_ Are there still any development prospects in France? Does not the existence of too many brand centres present a risk in terms of the centres’ catchment area and product attractiveness?

{{Chris POPE}}
_ This is a very good point. When comparing the situation with the UK, France is far from being overcrowded by outlet centres. There are still opportunities in South of France where there are no significant centres.

{{Richard BROADHEAD}}
_ There are many market opportunities in France. Freeport has long talked about setting up an outlet in France, there are opportunities in the South, near Lyon, St-Tropez, and in Provence just to name a few.
If the outlet is well thought out with a strong partnership with the town or city authorities, it will be beneficial.

{{Chris POPE}}
_ Yes, combined with the fact that France is a popular tourist destination, factory outlet centre are linked with tourism which emphasizes the attraction to France for this kind of activity.

{{Gaël THOMAS}}
_ Can this concept be exported to Eastern European countries?

{{Chris POPE}}
_ Eastern European countries are more liberal, there are more sites available but the risks are also higher. The markets are also less developed, therefore setting up outlets that sell brands at a discount, where there was no previous demand, at higher value prices, in city centres, can be risky.

{{Richard BROADHEAD}}
_ There are many opportunities to gain from the emerging markets. Brands do exist in places like Zagreb or in Polish cities. Also MAPIC invited numerous representatives from emerging markets who were there to sell their new development projects. The risks are higher, the lack of restrictions can be erroneous therefore a right reputable counterpart, which includes the local rules and which delivers exciting schemes, is crucial.
_ Freeport has experience in risk taking and failure. Taking this into account, we need to have a look at the consumer profile, the brands that are present on the market, consult the brand providers, determine the infrastructure and transport possibilities (air, train, road), and naturally competition. All in all, a sound catchment is important. Finally, a major experience Freeport learnt is to hire well-staffed local people who speak the language and who can run the business, such as in the Czech Republic and in Lisbon.
With the right partner, an open minded perspective, and a good plan, the risks will be diminished and the yield can be outstanding. For emerging markets there are many new growth opportunities.

{{Chris POPE}}
_ Adding on, as opposed to the risk perspective, it is essential to see how to improve a centre, its marketing budget and flexibility on the lease terms, to communicate with tenants on their performance and to reallocate these around to suit everyone.

{{Richard BROADHEAD}}
_ Concerning marketing, it is essential to plan it well. The experience with the Czech/Austrian border outlet centre is a good example of how Freeport did not evaluate the difficulty. Two different countries operating with different – currencies, – priorities, -customer profile and different culture increased the complexity and challenge of running a centre.

{{Gaël THOMAS}}
_ Do specific regional features act as a brake on the construction of world-wide and international networks?

{{Richard BROADHEAD}}
_ To be successful in an emerging market, partnership needs to be strong with locals who can help with the whole process in getting the approval, building the site and developing the centre.

{{Gaël THOMAS}}
_ With respect to product design, are the modules and formats always the same or does the centre have to be specifically adapted each time?

{{Richard BROADHEAD}}
_ From country to country, there is consistency in the layout of the centres and choice of brands. Brands are often in the same sized unit. International brands will always be relevant in every country. In specific countries, there needs to be a good representation of the brands that are already known by the local consumers. It is about understanding the international platform and including the other layers, such as operators and retailers who are local and regional, that are relevant to that local market.

{{Chris POPE}}
_ The architectural input, both for the local and regional features, is becoming more and more important in the design of a shopping centre. As you are treating more with leisure experiences, one has to put more efforts into the conception of the outlet centre.

{{Gaël THOMAS}}
_ Are there new sector prospects in order to continue to attract the consumer?

{{Richard BROADHEAD}}
_ The core business of outlet factories is clothing apparel and sporting brands of which respectively represent 80 % and 20 % of the turnover. Therefore putting international and well-known sports and clothing apparel brands will encourage the success of the outlet operator.
When looking at the trend in which people aspire to own and take care of their home, I think that home wear will become more important in the next few years. These can be purchases that you can bring with you in the car unlike beds and furniture.
There are other sectors that one could try, books, electronics and confections but ancillary to the core big brands. Developers should pay more attention to the local and regional operators who care to sell their crafts, allocating 30 to 50 square metres which would provide local traders (the opportunity) to be involved in the centre. Consumers will appreciate this and it will also build genuine partnership with the town and the city. Freeport will be more focused on the future, on catering to local traders and consumers, which adds a new dimension to the outlet centre.

{{Gaël THOMAS}}
_ Would you buy from a brand centre that had small traders in it?

{{Chris POPE}}
_ If the centre contained only local traders one would have to study the situation but it does raise an interesting issue. When looking at standard office or industrial investments, the quality of the covenants the tenant has signed for the lease is key but, with a factory outlet, the quality of the brand matters. It does not have a big financial weight and trading with the right brands adds considerable value to the centre. Letting local people have a representation in the centre is important.

{{Discussions with the floor}}

{{From the floor}}
_ Is there a real advantage in possessing a share of the market compared to these « major shareholders » and these brands?

{{Chris POPE}}
_ Speaking from Kenmore, we only have one outlet centre at the moment. Clearly, we see the attraction of having a critical mass. If you have a network of centres you will have a lot more of the same tenants in each centre through which you can develop good relationships. Tenants will want to expand or reduce in one centre, which brings a lot of cross-fertilisation. How many centres? Three to four centres at least would be a good start.

{{Richard BROADHEAD}}
_ Yes, Freeport sees an importance in networking. There are big advantages on building up a network. Developers generally have a good relationship with retailers and that is one of the reasons why one can witness a consistency of centres operated by the same developer, such as the great Mac Arthur Glen schemes.
There are some economies to be gained from it, in reality not as strong as they could be. However if you have an operation with three or four centres in the same country you have an opportunity to aggregate certain parts of your business, such as awarding contracts covering the four sites, carrying out operational functions in one location rather than paying the facility in all four locations.
This conference talks little about the operational functions of a centre which is a crucial part, building and opening, which we covered, are only part of the whole scheme. Indeed the success of a centre is about the ‘brand’ but in terms of network it is about partnership and trust with retailers.

{{From the floor}}
_ The network umbrella brand covers the store brands; what is the target marketing cost that this involves? What marketing costs does a network have to incur for it to make sense for the consumer?

{{Richard BROADHEAD}}
_ In terms of networks with retailers, generally if the operator can build a strong relationship with the retailer and understands their needs, there is good chance of becoming a successful outlet operator and developer. For instance there are a number of retailers here today, such as the MD of Mango, who represent the key people we should be liaising with.
In terms of turning brands away, it needs to be done. If a centre is strong on sports and a new sports operator approaches you, you need to judge whether it will be beneficial to do business together.
In the past, the sex shop company ‘Bertuso’ was refused in Freeport outlet centres which looking back was an ignorant decision. Today we are dealing with them again. Bertuso is a very well known brand, sex is part of peoples lives, and the retailer is found in many markets in Austria. Freeport is sometimes approached by certain ideas that do not benefit the brand, such as a company that wanted to set up a tattoo shop in the outlet centre, which does not fit the designer outlet concept. It is all about finding the right balance and good judgment call.

{{From the floor}}
_ Do you have a value and a goodwill for the brand-name for Freeport or otherwise why would consumers go to the shopping centre?

{{Richard BROADHEAD}}
_ We believe that Freeport has a value according to research done by consumers and non-consumers. It is a solid brand, even though bad choices were made that could have damaged the name, and the fact that Carlyle is willing to spend nearly 2 million pounds demonstrates the value that they put in the brand.

{{From the floor}}
_ What is the marketing cost attached for the brand?

{{Richard BROADHEAD}}
_ We spend a significant amount on marketing, more than the retailer’s marketing contribution. More than 2 million euros are spent from the sites, which is an investment to be spent wisely and is essential.

{{Gaël THOMAS}}
_ Are marketing costs carried over into the rent paid by the outlets or are they, on the contrary, necessary to attract the brand outlets?

{{Richard BROADHEAD}}
_ All of the sites are different. We have introduced flexible rental arrangements, which depend on the value of the brand. Leases are relatively short term, averaging five years, which varies from site to site and retail to retail. Some have a base rent and turnover percentage situation, some have a simple turnover arrangement. Crucial is to make money from the investments and the retailers in order to make a profit. We also charge our occupiers a set fee for the service charge, for cleaning and security, and a set fee for marketing. These are occupancy costs for the retailer to remain in the outlet centre. Freeport tops up what the retailers provide for marketing because we value marketing.

{{Gaël THOMAS}}
_ Could not being known by the brands constitute an obstacle for a non-specialised institutional investor, like Kenmore?

{{Chris POPE}}
_ I do not think so. I am not sure that the branding is an issue. The consumer would want to visit an outlet centre that is well run, has value retail and is a good experience to go to.

{{Richard BROADHEAD}}
_ The brand has value. It is not our intention to change the name of Freeport to Carlyle. Stronger recognised brands do benefit from that.

{{From the floor}}
_ Mr Broadhead, do you ever have to approach the brands in order to fill the outlet space on certain projects or is it always the brands who are fighting to obtain their premises? Mr Pope, brand centres are becoming smaller and smaller – could you invest in small surface areas with a relatively unknown start-up?

{{Chris POPE}}
_ In terms of size, speaking as a non specialist of this sector, critical mass, as earlier mentioned, is important. The centres that approach 20, 000 or plus square metres trade the best. If business fundamentals are good we would invest with a start up developer.

{{Richard BROADHEAD}}
_ We chase and we are chased by brands. The mix you have and the question of how you better serve the consumer, by providing new and international brands, needs to be incorporated in your plan.

{{Frédéric Willems}} (Legal representative of the National Clothing Federation)
_ How do we ensure that brand centres do not become just ordinary shopping centres?

{{Richard BROADHEAD}}
_ Although the identity of the outlet centre still needs to be further developed, brands will need an exit for their stock and the function an outlet serves is very important. International and big brands at discount are the core business of outlets, and it is the developers, the town and city interests’ to develop extra attractions in addition to the fundamentals of the business.

{{From the floor}}
_ As far as your European experiences, could you tell us about the general trends of yields in Europe?

{{Richard BROADHEAD}}
_ The general trends is that yields are going down and stagnating. Sub-prime lending, financial markets, it will be an interesting two years. For the UK it is an interesting turning point where people are queuing at banks to retrieve their money.

-*{{Factory Outlet Centres as Temples of Shopping Tourism}}
_ {{Source}}: Caroline LAMY, expert Magdus’ Observatory. Article published in the French revue « Espaces, tourisme et loisirs » (Spaces, tourism and leisure) n°269, april 2009.

_ {{Abstr

A new law called “LME” has changed the regime of sales in France. Since January 1st 2009, their duration was reduced to 5 weeks (6 previously) and every storekeeper has at his disposal 2 weeks, qualified of « floating » which he can use at his convenience. The Magdus Observatory led in May a survey with the directions of French Factory Outlet Centres to collect their points of view and, for some, their first experience feedback concerning this new measure.

{{{La justice complique la vie des déstockeurs}}}

Même quand elle concède sa distribution à un licencié, une marque peut s’opposer à la diffusion de ses produits par des déstockeurs, vient d’estimer la Cour Européenne de justice…

Source: Journal du Textile n°2001, 12.05.2009, p. 2/3

{{Lire l’article complet:}}

{A défaut de réglementation propre, les centres de marques ou de magasins d’usine doivent satisfaire à des conditions d’implantation et/ou de fonctionnement. Celles-ci s’avèrent plus ou moins contraignantes selon les pays. Ainsi, en matière d’implantation, deux groupes d’Etats se distinguent dans l’Union Européenne : ceux où les projets de création et d’extension sont soumis à une autorisation spécifique (cas de la France), indépendante du permis de construire, et ceux, en nombre plus restreint, où ces projets dépendent uniquement de la délivrance du permis de construire (cas du Royaume-Uni).
A terme, la Commission Européenne, qui souhaite lever tous les obstacles en matière d’exploitation commerciale, pourrait uniformiser la réglementation applicable à ces centres.}

{{{Allemagne}}}

Comme en France, plusieurs types de réglementation s’appliquent aux magasins d’usine en Allemagne :

{{Implantation et construction}}
_ Les implantations de centres de marques doivent répondre aux prescriptions définies, d’une part par la loi fédérale sur l’aménagement du territoire et le recueil des lois relatives à la construction et d’autre part, par les programmes de développement des Länder. L’objectif majeur est de mettre en œuvre un développement du territoire durable, liant les exigences socio-économiques aux équilibres écologiques.

Exemple du Bade-Wurtemberg
_ Au niveau du Bade-Wurtemberg, le plan régional de développement du territoire (1983) pose les conditions suivantes aux projets d’implantation de commerces de détail à grande surface :
_ « Les commerces de détail à grande surface et autres grandes surfaces commerciales pratiquant la vente directe au consommateur final ne doivent être implantés que sur des sites permettant leur intégration dans le système général d’approvisionnement en fonction de leur taille et de leur zone de chalandise. Ils ne doivent en aucun cas porter préjudice, par leur implantation ou leur dimension, aux structures urbanistiques et au système d’approvisionnement de proximité de la population vivant dans la zone de chalandise. »
Concernant plus particulièrement les grandes surfaces commerciales, le Plan régional précise (chapitre 2.5.3) :
« L’identification, l’implantation ou l’agrandissement de marchés de consommateurs, de centres d’achats ou autres grandes surfaces commerciales doivent s’effectuer de telle sorte que la structure d’implantation et le système d’approvisionnement de la région et des environs ne soient pas pénalisés. Il convient avant tout de veiller à quatre choses :
– Que ces implantations ou agrandissements soient réalisés sur des sites permettant leur intégration dans le système d’approvisionnement de la zone de chalandise,
– Que les liaisons routières de proximité soient assurées et que l’implantation ne soit réalisée que dans des zones d’habitation ou à proximité immédiate,
– Que ces implantations ne pénalisent pas les noyaux centraux d’approvisionnement,
– Qu’elles n’entravent pas l’approvisionnement de proximité et la diversité de l’offre. »

{{Publicité}}
_ Les règles de publicité sont encadrées pour toutes les ventes directes d’usine à des consommateurs. Ainsi, seul le fabricant peut procéder à ce type de vente. Il ne peut faire référence, dans sa publicité, à l’origine des articles (« direct d’usine », « prix d’usine »,…) que dans les 3 cas suivants :
– le fabricant vend exclusivement à des consommateurs,
– le fabricant vend à prix identiques aux consommateurs et aux revendeurs,
– le fabricant indique clairement, dans la publicité, que le prix de vente aux consommateurs est plus élevé que celui pour les revendeurs.

En outre, au niveau de l’exploitation de l’entreprise, les règles d’horaires d’ouverture et d’affichage de prix sont identiques à celles applicables à tout établissement de vente.

{{{Belgique}}}

{{Loi du 29 janvier 1975}}
La législation applicable aux magasins d’usine en Belgique était la loi sur les implantations commerciales du 29 juin 1975. Cette loi prévoyait qu’il convenait d’obtenir une autorisation pour toute implantation ou extension d’un magasin. Cette loi a gagné le surnom de « loi cadenas ».
Elle divise le territoire belge en deux zones (urbaine et rurale) et, à partir de cette distinction, les entrepreneurs voyaient ou non leurs projets soumis à l’obtention d’un permis socio-économique.
Pour les zones rurales, il fallait un permis pour toutes les surfaces commerciales excédant 750 m² de plancher commercial et/ou 1 000 m² de surface bâtie brute. Pour les zones urbaines, le même permis était nécessaire quand la surface commerciale nette dépassait 1 500 m² et/ou quand la surface bâtie brute dépassait 3 000 m². La décision de délivrer ou non un permis pouvait prendre plus de 6 ans.
La procédure mise en place par la Loi de 1975 sur les implantations commerciales ne prévoyait un recours que dans le cas où le Comité socio-économique pour la Distribution émettait un avis favorable ou partiellement favorable sur un dossier.
Cette loi s’est appliquée jusqu’au 1er mars 2005.

{{Loi du 13 aout 2004}}
Une révision de la loi sur les implantations commerciales s’est poursuivie, s’inscrivant, entre autres, dans le processus de simplification des législations existantes en donnant un pouvoir décisionnel accru aux autorités locales tout en écourtant ces délais de décision.
La nouvelle loi du 13 août 2004, surnommée « Loi Ikea », prévoit qu’il convient d’obtenir une autorisation pour toute implantation ou extension d’un établissement de commerce de détail ou d’un ensemble commercial dépassant une surface de vente nette (accessible au public) de 400 m².
Des procédures différentes sont d’application selon la taille (entre 400 m² et 1.000 m², > 1.000 m² et > 2.000 m²) et le type d’opération (nouvelle implantation, extension, extension limitée, déménagement …).
Contrairement à la loi de 1975, une procédure de recours est prévue auprès du Comité Interministériel pour la Distribution.
A titre d’information sont repris ci-dessous les schémas des différentes procédures ainsi qu’un condensé de la réglementation.

{Pour en savoir plus}

-*Loi du 13 aout 2005 – schémas des différentes procédures.
_ {Source : Spica Consult, février 2007.}

-*Réglementation des implantations commerciales en Belgique.
_ {Source : [www.urbicom.fr->http://www.urbicom.fr], mai 2006.}

{{{Danemark}}}

Le régime juridique applicable à la création et à l’agrandissement des magasins de commerce de détail au Danemark est régi par la loi No. 563 sur l’aménagement du territoire (Planloven) du 30 juin 1997, modifiée par la loi No. 440 du 10 juin 2003. Il s’agit d’une loi cadre qui fixe le partage des compétences entre les différentes divisions administratives danoises: l’Etat, les régions et les communes.
La loi soumet à condition la création de magasins de commerce de détail dont la surface serait supérieure à 1 500 m², ainsi que la création de magasins de produits de consommation courante (du type supermarché et autres magasins d’alimentation) dont la surface serait supérieure à 3 000 m². Les régions doivent exposer, dans le plan régional qu’elles soumettent annuellement au Ministère de l’Energie et de l’Environnement pour approbation, les raisons qui ont motivé
l’autorisation de création d’un magasin de dimensions supérieures aux limites susmentionnées. L’autorisation régionale sera ensuite confirmée ou infirmée par le département de l’aménagement du territoire.

{Pour en savoir plus}
-*Direction danoise de l’aménagement du territoire (Ministère de l’Environnement)

{{{Espagne}}}

La loi de l’ordre du commerce des détaillants du 15 janvier 1996 a introduit certaines règles dans le but de rendre le secteur du commerce plus stable. A l’identique de la France, le gouvernement espagnol avait mis en place un train de mesures drastiques afin de geler la progression du commerce moderne. En effet, la situation était devenue très tendue entre les petits commerces traditionnels et les grandes surfaces émergentes.
La réglementation actuelle est plus consensuelle. Ce sont les communautés autonomes qui sont en charge de son application. Ainsi, les conseillers municipaux jouent un rôle très important dans l’urbanisme commercial.

{{{Pologne}}}

Actuellement, la législation polonaise est vide en matière de réglementation des équipements commerciaux. Deux textes de loi définissent la procédure à suivre en matière de création d’équipements commerciaux mais il s’agit de textes généraux, applicables à toute construction :

– Loi sur l’aménagement du territoire du 27 mars 2003 (J.O. de 2003, n°80, texte 717) qui régit les questions relatives à la politique de l’aménagement local par les collectivités territoriales et les organes de l’administration gouvernementale, ainsi que la procédure en matière d’aménagement du territoire et des constructions.
– Loi sur la construction du 7 juillet 1994 (J.O. de 2003, n°207, texte 2016) qui régit les questions relatives aux projets, à la construction, au maintien, à la démolition d’immeubles et définit les principes de fonctionnement des organes d’administration publique dans ce domaine

La construction d’un équipement commercial de plus de 2 000 m2 est donc soumise aux règles d’aménagement du territoire de la commune concernée. La construction d’un équipement commercial doit remplir les conditions définies dans le plan local d’aménagement du territoire de la commune ou – lorsqu’un plan local n’existe pas, ce qui serait le cas pour 88% des communes de Pologne – dans l’étude des conditions et des modalités d’aménagement territorial de la commune.

Un projet de loi visant à limiter le développement de la grande distribution avait été élaboré il y a quelques années mais compte tenu de l’opposition de la majeure partie de la classe politique d’alors n’avait été ni adopté ni, semble-t-il, réellement étudié. Ce projet envisageait de soumettre toute ouverture de magasin d’une surface comprise entre 400 et 2 000 m2 à l’accord préalable des autorités de la commune et toute ouverture de magasin d’une surface supérieure à 2 000 m2 à l’accord supplémentaire des autorités de la voïvodie (région). En outre, un article du projet de loi prévoyait le versement par chaque magasin d’une taxe journalière aux autorités locales.

Fin 2005, un projet de loi similaire à l’initiative du parti populiste Samoobrona (littéralement Auto Défense) a été envoyé au Parlement polonais. Dans ces grandes lignes, le projet propose l’interdiction pour les villes de moins de 15 000 habitants de tout équipement commercial d’une surface de vente de plus de 400 m2 et pour les villes comprises entre 15 000 et 50 000 habitants, d’une surface de 600 m2. En outre, les ouvertures de surfaces commerciales supérieures à 2 000 m2 devraient être soumises à autorisation. Par ailleurs, le projet de loi contient une limitation du commerce dominical : les ouvertures de magasins seraient autorisées dans le cas où ceux-ci n’emploient pas plus de 5 personnes.

Ce projet de loi figurait parmi les conditions du « pacte de stabilisation », engagement liant les partis PIS, Samoobrona et LPR, dans le cadre d’une coalition parlementaire établie au début de l’année 2006. Depuis, cette union a donné lieu à un gouvernement de coalition mais le projet de loi n’est pas revenu au cœur de l’actualité.

{{{Portugal}}}

Selon le décret de loi du 20 août 1997, modifiant le décret de loi de 1995 et la loi de 1992, l’obtention d’une autorisation d’installation est obligatoire pour les unités commerciales importantes. En ce qui concerne l’implantation d’un centre de marques, le seuil est fixé à 20 000 m².
La demande se dépose auprès de la Direction Générale de la Concurrence et de la Consommation (DGCC). L’autorisation du Ministère de l’Economie n’est accordée que si la part de marché du centre de marques sur le territoire (continental) est inférieure à 15 %.
Ensuite, le démarrage d’activité est soumis à autorisation de fonctionnement délivrée par la DGCC qui vérifie si les conditions générales sont remplies.

{{{Plus d’infos sur la réglementation européenne}}}

-*Etude comparative des législations européennes
_ {Source : [Ministère des Petites et Moyennes Entreprises, du Commerce, de l’Artisanat et des Professions Libérales], octobre 2006.}

-*[Environ 10% des salariés européens travaillent le dimanche. « En 2000, dans l’UE, environ 25 % de femmes salariées et plus de 20 % d’hommes travaillaient régulièrement le samedi. La proportion de femmes et d’hommes travaillant généralement le dimanche était, quant à elle, de 10 %. (…) »->www.magdus.fr/Environ-10-des-salaries-europeens]

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