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Factory Outlet Centres - UK

Published by: Mintel International Group Ltd.

Published: Dec. 1, 2008 - 125 Pages


Table of Contents


ISSUES IN THE MARKET

Introduction

Main themes

Definition

MARKET IN BRIEF

Development curve

Location changes

The current situation

Main operators

Figure 1: Main operators, number of centres, space and shops, 2008

The market: benefits from tough economic times?

More reasons to visit - centre upgrades and extensions

More reasons to visit - tenant mix

Size vs catchment

Supply chain issues

Competition from value retailers and the internet?

A third of consumers have never visited

Shoppers want even better bargains!

Future prospects

Successful strategies

INDUSTRY INSIGHTS

Key points

Market overview

Market growth/saturation

Is the FOC market counter-cyclical?

Retail activity - challenges and strategies

Consumer expectations/requirements of the FOC experience

Wanting the same brand experience as the high street

Redevelopment and revamping the experience

Product offer/tenant mix

Tenant mix opportunities

Supply chain issues

Destination status

Visitors and travelling - price of petrol

Impact of the value retailers

Strategies for success

Successful marketing strategies

Impact of the internet

Future prospects

STRENGTHS AND WEAKNESSES IN THE MARKET

Strengths

Weaknesses

INTERNAL MARKET ENVIRONMENT

Key points

Tenants

Environment

Value market

Online market

Visiting shopping centres

Small shopping centres

Figure 2: Visits to small shopping centres, by gender, age and socio-economic group, 2008

Visits to major shopping centres

Figure 3: Visits to major shopping centres, by gender, age and socio-economic group, 2008

Shopping for leisure

Figure 4: Shopping statements, 2004-08

Attitudes towards personal appearance

BROADER MARKET ENVIRONMENT

Key points

Age structure

Figure 5: Age structure of the UK population, 2003-13

Population trends favouring affluent ABs

Figure 6: UK adult population (over 15), by socio-economic group, 2003-13

Cars and mobility

Figure 7: UK car ownership, 2001-08

Employment

Figure 8: UK workforce, employment and unemployment, by gender, 2001-08

Lower growth PDI

Figure 9: PDI, at current and constant 2003 prices, 2003-13

MARKET IN CONTEXT

Key points

Growth reaching a plateau

Figure 10: Non-food retailer sales and outlet centre non-food sales, 2003-08

The goods

MARKET SIZE AND FORECAST

Key points

Market overview

Figure 11: Retail sales, UK outlet centres, 2003-08

Retail sales growth slowing

FORECAST

Figure 12: Forecast, retail sales of UK outlet centres (non food), ex VAT, 2003-13

Figure 13: Forecast of Retail sales of UK outlet centres (non food) excl. VAT, 2003-13

Tough times ahead for factory outlets

Factors used in the forecast

THE CONSUMER - WHERE THEY SHOP

Key points

Figure 14: Where they shop, September 2008

Top three most popular centres

Leisure and regeneration

Broad appeal of outlet centres

Less affluent most likely not to have visited

Consumers who have not visited an outlet centre

Figure 15: Those who have not visited an outlet centre, by region, September 2008

Frequency of visits

Figure 16: Frequency of visits, by gender, age and socio-economic group, September 2008

THE CONSUMER - FACILITIES THAT COULD ENCOURAGE MORE FREQUENT VISITS

Key points

Consumers want even better bargains!

Bargain-focused marketing activities

Figure 17: Facilities that could encourage more frequent visits, September 2008

Affluent want more choice

Figure 18: Facilities that could encourage more frequent visits, by gender, age and socio-economic group,

September 2008

Regional issues

Figure 19: Facilities that could encourage more frequent visits, by region, September 2008

Hours and transport motivators

The importance of food

Figure 20: Facilities that could encourage more frequent visits, by gender, age and socio-economic group,

September 2008

RETAIL ADVERTISING AND PROMOTION

Key points

Active marketing and brand building

Figure 21: Main media used by McArthurGlen, 2003-07

Meeting consumer expectations

Online promotion and engagement

Creating links

Figure 22: Advertising spend of selected FOCs, 2003-07

RETAIL COMPETITOR ANALYSIS

Market positioning

Figure 23: Market positioning of selected outlet centres, 2008

Location

Figure 24: Locations of selected outlet centres, 2008

Catchment area

Figure 25: Catchment areas of selected factory outlet centres, 2008

The importance of the tenant mix

An interesting choice wanted

Figure 26: Visitor numbers and store numbers of selected factory outlet centres, October 2008

Winners and losers

FACTORY OUTLET CENTRE SCHEMES

Key points
Schemes overview

Total space and retail space

Shops and recent developments

Figure 27: Factory/designer outlet centres, UK, October 2008

McArthurGlen Group

Figure 28: McArthurGlen, October 2008

Figure 29: Catchment areas, McArthurGlen-operated factory outlet centres, 2008, and visitor numbers

2007

REALM

Figure 30: Positioning and customer profile of REALM-managed FOCs, September 2008

Figure 31: Key data on FOC schemes managed/leased by REALM, September 2008

Figure 32: Advertising and marketing activity of REALM-managed centres, 2007/08

Land Securities

Figure 33: Key data on Land Securities FOCs, 2008

The Galleria, Hatfield

Figure 34: Catchment of the Galleria, Hatfield, September 2008

Gunwharf Quays

The Outlet - Bridgewater Park

Figure 35: Catchment of The Outlet, Northern Ireland, 2008

Junction One

Figure 36: Key data, Junction One, September 2008

Dalton Park

Figure 37: Key data, Dalton Park, September 2008

Value Retail - Bicester Village

Figure 38: Key data, Bicester Village, October 2008

Figure 39: Catchment, Bicester Village, September 2008

Hornsea

Royal Quays - North Shields

Gretna Gateway Outlet Village

Clacton Shopping Village

Festival Park

The Lowry Outlet Mall

Springfields

Dockside Outlet, Chatham

Whiteley Village

The Mill, Batley

Eagle One

Wilton Shopping Village

FUTURE DEVELOPMENTS

Gloucester Quays

ONLINE

Brand Alley

Vente Privee

APPENDIX

Abbreviations

APPENDIX - INTERNAL MARKET ENVIRONMENT

Figure 40: Shopping statements, 2004-08

Figure 41: Attitudes towards personal appearance, 2004-08

Figure 42: Buying habits statements, 2004-08

APPENDIX - WHERE THEY SHOP

Figure 43: Where they shop, by gender, age and socio-economic group, September 2008

Figure 44: Where they shop, by gender, age and socio-economic group, September 2008

Figure 45: Where they shop, by lifestage, region, ACORN category, technology users, internet access,

daily newspaper and supermarket usage, September 2008

Figure 46: Where they shop, by lifestage, region, ACORN category, technology users, internet access,

daily newspaper and supermarket usage, September 2008

APPENDIX - FACILITIES THAT COULD ENCOURAGE MORE FREQUENT VISITS

Figure 47: Facilities that could encourage more frequent visits, by lifestage, region, ACORN category,

technology users, internet access, daily newspaper and supermarket usage, September 2008

Figure 48: Facilities that could encourage more frequent visits, by lifestage, region, ACORN category,

technology users, internet access, daily newspaper and supermarket usage, September 2008

Figure 49: Facilities that could encourage more frequent visits, by lifestage, region, ACORN category,

technology users, internet access, daily newspaper and supermarket usage, September 2008

Figure 50: Frequency of visits, by lifestage, region, ACORN category, technology used, internet access

and daily newspaper, October 2008

Figure 51: Where they shop, crossed with their attitudes, September 2008

APPENDIX: RESEARCH METHODOLOGY

Abstract

Do Factory Outlets still hold the same appeal that they used to?

A more interesting choice of shops and a wider range of designer goods would particularly attract the more affluent under-45 ABC1s. This indicates they want aspirational goods that are interesting and different, and which perhaps they cannot find easily elsewhere.

Marketing the tenant mix differentials to these consumers is important, and what could be of interest are short-term tenants - those only in the centre for a few weeks, or even just a week or a weekend - so that they have to visit in that time or risk missing out. Such ‘pop-up’ brands will bring excitement and add to the ‘interesting and different’ motivation to visit.

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