| {{Facilitator}} |
| {{Graham Parker }} {Shopping Centre} |
| {{Speaker}} | |
| {{François Moss}} Managing Director Development {Pantheon Retail (England)} |
|
{{Graham PARKER}}
_ The United States has over 250 outlet centres. Each outlet counts 1.2 million visitors. The Irish market is becoming as mature with 6 million people and 5 outlet centres (Sweden and Switzerland as well).
Since over 60 % of the retail brands are situated on high streets and that there are no legal restrictions on the period of sales, the value offered by outlets is undermined.
Trade has been more difficult with the revival of Marks and Spencer.
NEXT’s turnover is down to 3 % this year. As a result, They have, tightened the supply chain and have 25 % less stock available. Marks and Spencer spends 150 million € on marketing in the UK per year and NEXT spends about 10 million €. Ireland has different characteristics, what are your experiences?
{{François MOSS}}
_ Ireland has a very tricky market. The only British outlet you can reproduce would be on the East Coast, since the West Coast is densely populated and organized with small towns.
{{Graham PARKER}}
_ Two of the three operators are in Northern Ireland. That may have to do with the planning system and the British legal code. Indeed the planning system in the South is not as development oriented.
{{François MOSS}}
_ The North offers more opportunities to developers. Ireland is a very successful place for design and small businesses. At the moment, fashion textile is imported from the UK.
{{Graham PARKER}}
_ The Irish system focuses on saving rather than spending all their money on outlets, they have special savings accounts.
{{From the floor}} (Journal du textile)
_ How healthy are the 50 factory shops in the United Kingdom?
{{Graham PARKER}}
_ I do not know what the consumer levels are, it depends from the centre. With regards to premature performance, most of the big outlets are in institutional hands now. It shows that the financial community still has confidence in outlets.
{{François MOSS}}
_ From my estimate, occupancy runs from 80 to 85 %. There are 2 types of outlets, the small ones which generally do well, and the big ones, the ambitious, that occupy the market. The UK is a very liquid market; a lot of money can, be made in both types of outlets. The UK market is way ahead in continental Europe and its outlets are open 7 days a week.
{{Graham PARKER}}
_ Sundays is the second best trading day after Saturday. If it were a full day, it would probably become as good as a Saturday.
{{François MOSS}}
_ Sundays are often better trading days than Saturdays.
{{From the floor}} (Samsonite)
Which outlets will survive in periods of a declining market?
{{Graham PARKER}}
_ The “survivors” will be the ones adopting a strategy, investing in marketing and creating a feeling of space with a design attracting the “good” consumers.
{{François MOSS}}
_ There are 2 aspects in success. One is the catchment and the dynamics. The other is strong management.
{{Graham PARKER}}
_ Scotland has 2 dead outlet malls, one is very close to Livingston. Livingston is attached to a full time shopping centre which presents challenges for a retailer.
{{From the floor}}
_ In France, a maximum of 15 centres will be able to be built. How do you explain the fact that the United Kingdom can host 49 centres for an equivalent population?
{{Graham PARKER}}
_ A centralised planning system is crucial. Certain towns have allowed outlets to develop in a way that they are stealing business from other locations. The UK universities could support more outlets.
{{François MOSS}}
_ You need to look at the population distribution, UK’s is dense for example (South East of England: 25 million people). You do not have that density in France.
{{From the floor}}
_ Can you tell us more about TK Max?
{{Graham PARKER}}
_ TK Max has expanded very aggressively. It does not market itself as well as factory outlets, which are more focused on a leisure experience.
{{François MOSS}}
_ The consumer type is very different. In Factory outlets such as PBL, the consumers generally don’t have time to lose, they know what they want: their purchases are very scheduled. TK Max is on the other hand label-driven.