The company’s investment programme includes four new developments and seven centre expansions which are scheduled to open over the next three years in some of the most densely populated catchments and key tourist destinations in Europe and Canada.
Julia Calabrese, McArthurGlen’s CEO, said: “As convenience purchases increasingly move online, consumer appetite for destination shopping has never been stronger. That includes tourists, and we are targeting a doubling of our tourism revenues over the next five years, supported by the continuing rise in independent travel. As well as expanding our portfolio, we are investing in our in-centre experience and in technology to engage and delight our guests and meet growing demand for experiential retail from Generations Y and Z .”
Market research by the consulting group CACI, carried out in partnership with McArthurGlen, highlights the importance of destination shopping for Millennials. While they are a digital generation, Millennials seek experience and authenticity from their leisure time. Annual spend in McArthurGlen’s portfolio is highest among younger shoppers, and those aged between 18-29 visit a McArthurGlen centre twice as often as those aged over 50.
CACI’s analysis of shopping habits in the UK reveals increasing growth in Destination Mission shopping, which is defined as ‘a big shopping trip that has either leisure or pleasure at its core, typically achieved through the strength and uniqueness of a retail venue’s offer’. In 2018, 21% of all UK shopping trips were Destination Missions, compared to 16% in 2013.
Further enhancing the quality of its offering, McArthurGlen welcomed 50 new brand partners to the group during the past 12 months, including Billionaire, Chloe, Delpozo and Jimmy Choo. They join McArthurGlen’s portfolio of the world’s best-known brands which includes Armani, Burberry, Calvin Klein, Dolce and Gabanna, Gucci, Hugo Boss, Levi’s, Nike, Prada, Polo Ralph Lauren, Puma, Tod’s, Tommy Hilfiger, Valentino and Versace.
Adrian Nelson, McArthurGlen’s Group Leasing and Brand Development Director, said: “As the retail landscape evolves, we continue to deliver our brand partners with high levels of footfall, strong sales densities and a leasing model that aligns our mutual interests to grow turnover. Our Top 100 Brand Index shows that like-for-like sales for McArthurGlen’s leading brand partners have grown by an average of 8.6% per year over the past five years, reinforcing our role as a consistently high-performing retail channel that delivers real value for brands in their multi-channel world.”
McArthurGlen’s strategy of enhancing its Food and Beverage (F&B) offering continues to resonate with consumers and the Group’s F&B sales are on track to grow by 10% by the end of 2018. CACI’s analysis of McArthurGlen customer behaviours highlights the positive impact of F&B engagement, with overall spend 53% higher for those who included food or drink during their shopping trip.
New F&B brands to partner with McArthurGlen in the past 12 months include Bistrot Milano Centrale, Comptoir Libanais, dean&david, Frites Boutique, Panino Giusto, and Yo! Sushi, while Sacher Eck, the luxury cafe arm of Vienna’s iconic Sacher Hotel, opened its first ever shopping centre location at McArthurGlen Designer Outlet Parndorf in Austria in September.
More than 800 new store opportunities will be created by McArthurGlen’s development pipeline by 2021, while the group’s collective 90-minute catchment will grow to nearly 180 million shoppers.
Mike Natas, McArthurGlen’s Joint Managing Director of Development, said: “Securing €1 billion to invest in new centres and expansions demonstrates the strength of investor confidence in our sector and the growing demand from consumers for designer outlet shopping.”
Key developments include:
- McArthurGlen Designer Outlet Málaga, developed together with Sonae Sierra, will become the first designer outlet in the south of Spain when it opens in Spring 2019 and marks McArthurGlen’s debut in the Spanish The €140 million project is located adjacent to Sonae Sierra’s successful Plaza Mayor shopping centre, the city’s most visited shopping centre with over 10 million shoppers every year. The centre is already 80% leased.
- In the UK, McArthurGlen has three developments underway delivering over 40,000 sq m of new, high-quality outlet space which collectively represent a €335 million This includes expansions of two existing centres at Cheshire Oaks near Manchester – the first designer outlet in Europe – and Ashford near London, together adding 75 new stores to the UK portfolio. In 2020 the group’s seventh UK centre, at Cannock, near Birmingham, will open with Phase I delivering a further 80 stores.
- In Germany, McArthurGlen has secured planning permission for a designer outlet in Remscheid. The new 27,000 sq m centre and its 2,500-space car park will serve an exceptional 90-minute catchment of 21 million people when it opens in 2021. McArthurGlen will invest €165 million in the project. A third phase is also planned for McArthurGlen Designer Outlet Ochtrup, which will add 55 new stores and restaurants.
- In Italy, McArthurGlen will deliver three centre expansions, at La Reggia near Naples, Noventa near Venice and Castel Romano near Each location is an established global travel destination and collectively they welcome over 50 million tourist visitors every year.
- In France, McArthurGlen is in planning on the first and only luxury designer outlet to serve Western Paris, with over 5 million shoppers within a 60 minute The 20,000 sqm centre in Normandie will include 110 stores, seven restaurants and 1,200 parking spaces.
- In Canada, McArthurGlen Designer Outlet Vancouver Airport’s second phase will open in Summer Already recording the highest sales densities of any designer outlet in Canada, Phase II will add 7,800 sq m with 35 new stores.