According to a recent report by GlobalData, the spending at UK outlet centers is projected to reach an impressive £4.1 billion by 2024. This surge in consumer expenditure is fueled by the growing demand for discounts and the desire for unique shopping experiences. In fact, 2019 is expected to see a 4.8% increase in spend at outlet centers, which is a stark contrast to the declining trend in physical retail.
Emily Salter, a retail analyst at GlobalData, notes that outlet centers are poised to outperform traditional retail locations, particularly as town centers struggle with declining foot traffic and store closures. This trend is further fueled by the evolution of occupier line-ups, with younger and more sought-after brands like Dr Martens and Nike replacing traditional retailers such as M&S and Gap.
In response to the shifting consumer preferences, outlet center landlords are actively investing in the transformation of existing outlets and the introduction of new brands to create an enticing shopping destination. For instance, McArthurGlen is injecting £90 million into the expansion of its Ashford Designer Outlet, while RPMI Railpen is rebranding Gretna Gateway Outlet Village to attract more visitors.
Currently, fashion and footwear spending dominate outlet center sales, accounting for 65% of the market share. However, as landlords focus on enhancing the overall shopping experience, there is a projected decline in the percentage of spending on fashion and footwear. Instead, there will be a greater emphasis on the inclusion of leisure and food service operators to meet the evolving demands of consumers.
To heighten the shopping experience and encourage repeat visits, outlet center owners are exploring the concept of hosting pop-up stores and events featuring popular brands such as Hush and Charlotte Tilbury. This strategy aims to engage shoppers on a deeper level and create a sense of excitement that will drive increased footfall and spending at outlet centers in the years to come.
For more information on the evolving retail landscape and outlet center trends, you can visit GlobalData’s website here. Additionally, if you are interested in exploring some of the top outlet centers in the UK, you can find a comprehensive list here.
