In times of inflation and rising energy prices, consumers are shopping more prudently within their means. They monitor prices, special discounts, and seasonal sales, but they should not have to give up well-known global brands. Namely, outlet-centers are experiencing growth in an uncertain environment where retail consumption is decreasing, becoming a haven for all those who want to access selected brands at lower prices. The resilience of outlet-centers during periods of economic challenges and belt-tightening is certainly influenced by the fact that this form of retailing attracts customers and brands more strongly. The European outlet market is expected to continue to develop robustly due to the ongoing recovery following the COVID-19 pandemic, increasing development infrastructure, technological innovations, evolving brand offerings, and ownership consolidation. According to a study by the London consulting firm Ken Gunn Consulting from 2023, the short-term development plan encompasses 350,000 square meters of new retail space, which will add 1.6 billion euros to existing revenue.
Record Sales
Permanent discounts and attractive luxury brands are an excellent combination, especially when combined with shopping in one place along with a good food and beverage offer. Outlet-centers are thus becoming a kind of resort for the whole family, suitable for day trips or weekend getaways and holiday travels just like any tourist destination. This is the direction in which the Austrian ROS Retail Outlet Shopping is developing, adapting to the trends of luxury brand sales, movements in tourism, and leading its outlet-centers as perfect day, cross-border, and weekend destinations.
With a special emphasis on the customer through the ‘Bold’ strategy, which encourages growth and balances short-term challenges with long-term strategic priorities, ROS achieved a sales increase of 16.5 percent last year compared to the previous year. It also recorded record sales in several of its centers across Europe during ‘Black Friday’ or ‘Black Week’. As the fourth largest outlet operator in Europe (by operational sales area) and a consulting company for retail real estate and center management, including Designer Outlet Croatia, with a focus on designer retail spaces and innovative shopping in outlets, ROS attracted many new brands last year. This year, it plans to attract even more, following a strategy of premiumization and development. As outlets become mixed-use spaces and customer dwell time increases, ROS intends to offer essential premium outlet-destinations.
New Trends
Creating a unique experience in a special environment with numerous accompanying amenities has proven to be very effective, ensuring growth and success for brands and investors. Trends indicate that the growth of outlet offerings can expand towards sustainable fashion, which will certainly attract younger consumers, as well as vintage clothing and items (used products, which can also be luxury), which also have their fans. Outlets are also suitable for pop-up stores that temporarily open and then move to another space. The trend of pop-up stores can also be utilized as a solution for some cultural and artistic events in outlet-centers.
