The UK’s outlet centres are outperforming in the wider retail market, growing rapidly ahead of shopping centres, according to new research.
Global real estate firm CBRE found that outlets have recorded close to double-digit sales per year between 2012 and 2017, with the UK’s Bicester dominating the sector by making more sales than any other shopping district globally.
Outlet centres offering clarity of occupier performance, low rent costs and high consumer confidence has attracted investors attention.
Many outlets have even gone as far as to increasing food & drink offerings in order to attract footfall.
Meanwhile, CBRE reported that the UK has the highest floor space of outlets per capita in Europe.
Next year, two new outlets are due to open in Cannock and Scotch Corner, while Glasgow and Grantham are also expecting outlets in the next few years.
“Outlets have become increasingly attractive to brands and investors alike,” CBRE head of UK retail Rhodri Davies said.
“Flexible lease structures, with strong landlord controls and the capacity for operators to achieve a swift return on investment through increases in sales, provide a stable platform for investors. While the discount model seems to resonate increasingly with shoppers.
“When well-located with a high-quality leisure experience, outlet centres present a unique experience tailored to the modern consumer, and should continue to perform in the new retail landscape.”
Source: Retail Gazette