FSP Outlet Centre Industry Update - 2017

European Outlet Shopping March 2017

FSP RETAIL BUSINESS CONSULTANTS

European Outlet Centres – Current Position Today there are XXX outlet centres across Europe. XXX have gross lettable floor space provision which is greater than XXXXm² The XXX schemes open in 2015 have a total gross area of XXX million m² and achieved annual turnover of €XXXbn (excluding VAT). This equates to average (gross) sales density of €XXX/m² (GLA excluding VAT) Total turnover XXXXX since 2008 In 2015, like for like sales grew XX%, XXXXXXXXXXXXXXXXXX. Lesser schemes and operators achieved sales growth of around X% The greatest concentration of outlet centres is at XXXXXXXXX XXXXXXXX The largest outlet centre site in Europe is XXXXXXXXXXX The largest single outlet centre in Europe is XXXXXXXXXXXXX XX outlet centres are over XXk m² GLA however, the average size is XXXm² GLA Outlet Villages are XXXXXXXXXXXXXXXXXXXXXX. These have XXXXXXXXXX

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

2016 – Highlights Month

Outlet Ventre / Operator

Country

News

January

Fleetwood Freeport

UK

Purchase Report to see the news

January

London Designer Outlet

UK

Purchase Report to see the news

January

Mill Green Designer Outlet

UK

Purchase Report to see the news

February

McArthurGlen Troyes / Roubaix

FR

Purchase Report to see the news

February

Roppenheim The Style Outlets

FR

Purchase Report to see the news

March

Fashion House Bucharest

RO

Purchase Report to see the news

March

Metropolian Outlet, Bydgoszcz

PL

Purchase Report to see the news

March

The Outlet / Junction One

UK

Purchase Report to see the news

March

Torino Outlet Village

IT

Purchase Report to see the news

April

Fashion Outlet in Zevenaar

NL

Purchase Report to see the news

April

City Outlet Bialystok

PL

Purchase Report to see the news

April

Designer Outlet Wolfsburg

DE

Purchase Report to see the news

April

Hackney Walk

UK

Purchase Report to see the news

April

Viaduc Village

FR

Purchase Report to see the news

April

Fashion Outlet Leipzig

DE

Purchase Report to see the news

May

Bicester Village

UK

Purchase Report to see the news

May

Designer Outlet Algave

PO

Purchase Report to see the news

May

Rosada Fashion Outlet

NL

Purchase Report to see the news

June

Designer Outlet Croatia

HR

Purchase Report to see the news

June

Freeport Braintree

UK

Purchase Report to see the news

June

Gunwharf Quays

UK

Purchase Report to see the news

June

McArthurGlen Provence

FR

Purchase Report to see the news Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

2016 – Highlights Month

Outlet Ventre / Operator

Country

News

June

The Village, Villefontaine

FR

Purchase Report to see the news

July

London Designer Outlet

UK

Purchase Report to see the news

July

VIA Outlets

ES

Purchase Report to see the news

August

Freeport Talke

UK

Purchase Report to see the news

August

Neinver

CZ

Purchase Report to see the news

September

Deltapo Outlet

IT

Purchase Report to see the news

September

Grantham Outlet Village

UK

Purchase Report to see the news

September

Honfleur

FR

Purchase Report to see the news

September

Sambil Madrid Outlet

ES

Purchase Report to see the news

October

De Bradelei

UK

Purchase Report to see the news

October

Fashion House Moscow

RU

Purchase Report to see the news

October

Princess Quay, Hull

UK

Purchase Report to see the news

October

Rosada Fashion Outlet

NL

Purchase Report to see the news

October

Villadecans - The Syles Outets

ES

Purchase Report to see the news

November

Kildare Killage

IE

Purchase Report to see the news

November

Lowry Designer Outlet

UK

Purchase Report to see the news

November

Neinver / TH Real Estate

November

McArthurGlen Malaga

ES

Purchase Report to see the news

December

Dalton Park

UK

Purchase Report to see the news

December

VIA Outlets

December

Kilver Court

UK

Purchase Report to see the news

December

Scotch Corner Outlet Village

UK

Purchase Report to see the news

Purchase Report to see the news

Purchase Report to see the news

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Outlet Supply Per Capita – December 2016 The adjacent chart compares the provision of outlet centre floor space per capita across a selection of European countries.

On average there are XXX people for every square metre of outlet centre floor space in Western Europe This rises to XXX people for every square metre of outlet centre floor space in Western Europe and Central Europe The mature markets of XXXXXXX (with more liberal planning systems) have the highest provision of outlet centre floor space XXXX and XXXX have low ratios of outlet centre supply, indicating potential for substantially increased provision XXXX and the Netherlands have potential to sustain moderate increases in provision

Country

Count of Total Area Population in Population Outlet Centres (gross m2) 2013 (million) per m2 2 (>5km ) 2016

Italy

X

X

X

X

United Kingdom

X

X

X

X

France

X

X

X

X

Spain

X

X

X

X

Germany

X

X

X

X

Poland

X

X

X

X

Portugal

X

X

X

X

Russia

X

X

X

X

Switzerland

X

X

X

X

Netherlands

X

X

X

X

Austria

X

X

X

X

NB Excludes minor schemes below 5,000 sqm e.g. xxxx Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

The Leading Markets – 2015 Performance Country

Count of Outlet Centres

Total Area (gross sqm)

Total Sales (€Bn ex VAT)

Average Size (sqm)

Average Sales (€Mn ex VAT)

Average Sales Density (€/sqm)

United Kingdom

X

X

X

X

X

X

Italy

X

X

X

X

X

X

Germany

X

X

X

X

X

X

France

X

X

X

X

X

X

Spain

X

X

X

X

X

X

Poland

X

X

X

X

X

X

Austria

X

X

X

X

X

X

Switzerland

X

X

X

X

X

X

Russia

X

X

X

X

X

X

Portugal

X

X

X

X

X

X

1

NB Excludes minor schemes below 5,000 sqm e.g. Kilver Court (UK), Galerie Fanal (FR) and Space Outlet (IT)

2

NB UK density excluding Bicester Village €3,970/sqm (£266/sqft) Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Outlet Centre Formats – Performance & Mix XXXX are the most popular format in Europe, accounting for XX% of total outlet centre floor space and XX% of sales. The charts below illustrate some of the reasons behind this popularity.

Purchase the report for graphs and interpretation

XXXXXXXXXx

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Appendix Customer Demand

FSP RETAIL BUSINESS CONSULTANTS

Outlet Centre XXXXXXXXX

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Outlet Centre XXXX

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

European Outlet Centres – Development Capacity Purchase the report for insightful commentary, Purchase the report for understanding of FSP methodology Purchase the report for interpretation of the maps.

Purchase the report for FSP expert view on development capacity

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Investors and Operators

FSP RETAIL BUSINESS CONSULTANTS

Leading Investors Share of Total Turnover

Share of Floor Area

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Leading Operators – Market Share Country

Europe

United Kingdom

Italy

France

Poland

Spain

Germany Others

McArthurGlen

X

X

X

X

X

X

X

X

Value Retail

X

X

X

X

X

X

X

X

VIA Outlets

X

X

X

X

X

X

X

X

Neinver

X

X

X

X

X

X

X

X

Realm

X

X

X

X

X

X

X

X

Marques Avenue

X

X

X

X

X

X

X

X

Multi Outlet Management Italy

X

X

X

X

X

X

X

X

Land Securities

X

X

X

X

X

X

X

X

Promos

X

X

X

X

X

X

X

X

Advantail

X

X

X

X

X

X

X

X

ROS Retail Outlet Shopping GmbH

X

X

X

X

X

X

X

X

Fashion House

X

X

X

X

X

X

X

X

Boundary Mill

X

X

X

X

X

X

X

X

Peel Outlets

X

X

X

X

X

X

X

X

Fashion Outlet Group

X

X

X

X

X

X

X

X Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Occupiers

FSP RETAIL BUSINESS CONSULTANTS

Top 25 Occupiers Retailer

Country of Origin

Merchandise Category

FISH

Price Position

# Outlet Stores

CE. Europe

Northern Europe

Southern Europe

Western Europe

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

France

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

Spain

X

X

X

X

X

X

X

X

Purchase for info

Switzerland

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

France

X

X

X

X

X

X

X

X

Purchase for info

USA

X

X

X

X

X

X

X

X

Purchase for info

Italy

X

X

X

X

X

X

X

X

Purchase for info

United Kingdom X

X

X

X

X

X

X

X

Purchase for info

Japan

X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

France

X

X

X

X

X

X

X

X

Purchase for info

Italy

X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

United Kingdom X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

United Kingdom X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X

Purchase for info

Germany

X

X

X

X

X

X

X

X Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

The Leading Markets – Occupier Growth

Purchase for graphs and interpretation

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Top Expanding Occupiers Country of Origin

Retailer

Merchandise Category

FISH

Price Position # Outlet Stores

# New Outlet Stores

CE. Europe

Northern Europe

Southern Europe

Western Europe

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X

Purchase for info

X

X

X

X

X

X

X

X

X

x

Purchase for info

X

X

X

X

X

X

X

X

X

X Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Expanding Occupiers in Key Markets France

Germany

Italy

Poland

Russia

Spain

United Kingdom

1 Purchase for info

Purchase for info

Purchase for info

Purchase for info

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Purchase for info

2 Purchase for info

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Purchase for info

Purchase for info

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3 Purchase for info

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Purchase for info

Purchase for info

Purchase for info

Purchase for info

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4 Purchase for info

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Purchase for info

Purchase for info

Purchase for info

Purchase for info

5 Purchase for info

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Purchase for info

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6 Purchase for info

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Purchase for info

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Purchase for info

Purchase for info

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7 Purchase for info

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Purchase for info

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Purchase for info

8 Purchase for info

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9 Purchase for info

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Purchase for info

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Purchase for info

10 Purchase for info

Purchase for info

Purchase for info

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Purchase for info

Purchase for info

Purchase for info

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

The Leading Markets – Occupiers

Source: FSP

20

March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Evolving Fashion Markets Purchase report to understand markets using FSP’s FISH and Price positioning classifications

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Development Activity

FSP RETAIL BUSINESS CONSULTANTS

Outlet Industry Expansion

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Planned Openings in 2016 & 2017 (New Sites) Country Spain

Location Purchase for information

France

Purchase for information

United Kingdom

Purchase for information

France

Purchase for information

Spain

Purchase for information

Italy

Purchase for information

Netherlands

Purchase for information

France

Purchase for information

Germany

Purchase for information

Poland

Purchase for information

Russia

Purchase for information

Italy

Purchase for information

Czech Republic

Purchase for information

Austria

Purchase for information

Germany

Purchase for information

France

Purchase for information

Name

Year

GLA (sqm)

Source: FSP

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Conclusion

FSP RETAIL BUSINESS CONSULTANTS

Summary Purchase report for FSP’s expert analysis of the Outlet Industry

This report is available for purchase for £1,995. Email FSP with invoicing details and the report will be delivered on receipt of payment

FSP March 2017

About the author Compiled using FSP’s industry leading bespoke Outlet Centre Database, this report was written by Ken Gunn, FSP’s Managing Director.

Ken is a widely respected authority on Designer Outlet Centres and in the last decade has worked on over 100 outlet projects in 30 countries. His views are regularly sought by the industry’s leading participants and the World's press and Ken plays an active role at international conferences on the format.

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

About FSP

FSP RETAIL BUSINESS CONSULTANTS

FSP Consultancy FSP helps Clients to increase the value of their retail property investments by: Combining exceptional business insight, with 40 years of consultancy experience Using a variety of appropriate research techniques to identify achievable solutions Ensuring that investments with weak growth prospects are avoided Working with Clients to devise successful management strategies Working with Clients and advisors to implement strategy, monitor performance and attract target occupiers

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

FSP Consultancy FSP consultancy services: Identify how outlet centres are currently performing Quantify scope for sales and income growth Identify occupier risk and sustainable rental income Quantify how additional space or improved mix will increase sales and income Understand opportunities to reposition underperforming assets Add retail context, occupier performance and customer insight to lease negotiations Make a compelling case for target occupiers to lease space

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Key Facts About FSP Founded 40 years ago. Now part of St Ives Group Located in High Wycombe, near London Advise owners, developers, managers and occupiers of retail property Experienced team of 18 people, with retailing backgrounds Unique Retailer and Outlet Centre Databases Pan European demographic and expenditure data Working with many of the leading players in the European property market Specialist knowledge and track record in Shopping Centres, Retail Parks and Outlet Centres Experience includes over 90 Outlet Centre projects in 30 countries Recognised throughout Europe as leading authority upon Outlet Centre shopping Since January 2011, FSP has worked in Belgium, Denmark, Estonia, France, Germany, Hungary, Italy, the Netherlands, Slovakia, Switzerland and Ukraine

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March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

FSP Services for Outlet Brands Interactive European Outlet Centre Map Zoom in and out using Google maps Classifies European outlet centres by retail mix Click to see size, age, operator and retail mix details Free to use at; https://www.fspretail.com/products/interactive-outlet-centre-map/

Outlet Insight Europe wide site profiling using consistent data Reports drive time population, purchasing power and fashion demand plus retail mix and site details Compares selected site against brand’s portfolio Compares selected site against industry averages Outlet Location Strategy Prioritises target countries and ideal portfolio size Prioritises target sites based upon mix and customers Identifies under-performing sites for rationalisation 31

March 24, 2017

FSP RETAIL BUSINESS CONSULTANTS

Ken Gunn Managing Director T+44(0)1494 474740 M+44(0)7773 779919 F+44(0)1494 474262 Ken@fspretail.com

FSP RETAIL BUSINESS CONSULTANTS 19 Manor Courtyard Hughenden Avenue High Wycombe UK, HP13 5RE T +44(0)1494 474740 F +44(0)1494 474262 fspretail@fspretail.com www.fspretail.com www.snap-shop.co.uk

Š 2016 Fripp, Sandeman and Partners Ltd. Whilst efforts have been made to verify the accuracy of the information presented in this Report, neither Fripp Sandeman and Partners Ltd, nor its affiliates, can accept any responsibility or liability for reliance by any person on the information presented. The contents of this Report are strictly confidential in nature and should not be circulated.

FSP RETAIL BUSINESS CONSULTANTS