Kering sells The Mall Luxury Outlets to Simon in 350 million euro deal

Kering has finalised the sale of its entire stake in The Mall Luxury Outlets to Simon, the U.S.-based real estate investment trust specialising in high-end retail, dining, and entertainment destinations. The transaction, valued at approximately 350 million euros, marks Kering’s strategic move to streamline its portfolio and focus on its core luxury business.

Established in 2001, The Mall Luxury Outlets operates two prestigious shopping destinations in Italy—one in Leccio, near Florence, and another in Sanremo, on the Italian Riviera. These locations have become well-known for housing a selection of luxury brands, offering brand and cost-conscience shoppers a curated retail experience in a refined setting. Simon, a global leader in retail property management, is well-positioned to oversee the continued success of these premium outlets, Kering said in a statement.

The decision to divest from The Mall aligns with Kering’s broader strategy of refining its distribution model and prioritising its direct-to-consumer approach. By concentrating its outlet presence in a select number of exclusive venues, the French luxury conglomerate seeks to maintain greater control over brand positioning and customer engagement. Despite the sale, Kering’s luxury brands, including Gucci, Saint Laurent, and Bottega Veneta, will continue to be featured in both locations, ensuring that the outlets remain a key touchpoint for affluent shoppers.

For Simon, this acquisition represents an opportunity to strengthen its European footprint and enhance its portfolio of high-end retail assets. The company has a track record of successfully managing premier shopping environments and is expected to bring its expertise in customer experience and retail innovation to The Mall Luxury Outlets.

This deal reflects broader trends in the luxury sector, where major fashion houses are reassessing their retail strategies to strike a balance between exclusivity and accessibility. As luxury groups focus on flagship stores and high-end retail destinations, the role of outlets is evolving, with an emphasis on preserving brand prestige while catering to a more diverse clientele.

Kering has been more acutely affected by the slowdown in the global luxury market than some of its competitors, with declining sales and profits pushing its stock price to its lowest level since 2017. In line with its efforts to optimise financial performance and restructure its asset portfolio, the company recently sold a majority stake in three prime Parisian properties to French private equity firm Ardian, generating net proceeds of approximately 837 million euros.