McArthurGlen to invest 1 billion euros in outlets

Designer outlet developers McArthurGlen has announced it will invest 1 billion euros in new centres and expansions to cater for the “growing demand from shoppers and tourists” for destination shopping experiences.

The company’s investment programme includes four new developments and seven centre expansions which are scheduled to open over the next three years, in key locations across Europe and Canada, including the expansion of its UK sites in Ashford in Kent and Cheshire Oaks, and the group’s seventh UK centre, at Cannock, near Birmingham, which will feature 80 stores that is set to open in 2020.

Other key developments include the opening of Designer Outlet Málaga in southern Spain, which has been developed in partnership with Sonae Sierra, that will become the McArthurGlen’s debut designer outlet in the Spanish market when it opens in spring 2019. The 140 million euros project is located adjacent to Sonae Sierra’s successful Plaza Mayor shopping centre, the city's most visited shopping centre with over 10 million shoppers every year, and the centre is already 80 percent leased.

In Germany, McArthurGlen has secured planning permission for a 290,000 square foot designer outlet in Remscheid, which will serve a 90-minute catchment of 21 million people when it opens in 2021. In addition, a third phase is also planned for McArthurGlen Designer Outlet Ochtrup, which will add 55 new stores and restaurants.

In Italy, McArthurGlen will deliver three centre expansions, at La Reggia near Naples, Noventa near Venice and Castel Romano near Rome, while in France, McArthurGlen is in planning the first luxury designer outlet to serve western Paris, with a 215,275 square foot centre in Normandie that will include 110 stores, seven restaurants and 1,200 parking spaces.

In Canada, the second phase of its Vancouver airport destination, which McArthurGlen states is already recording the highest sales densities of any designer outlet in Canada, will add 35 further stores in summer 2019.

McArthurGlen plots four new developments and seven centre expansions over the next three years

With all the developments, McArthurGlen will add more than 800 new store opportunities by 2021, while the group’s collective 90-minute catchment will grow to nearly 180 million shoppers.

Julia Calabrese, McArthurGlen’s chief executive, said in a statement: “As convenience purchases increasingly move online, consumer appetite for destination shopping has never been stronger. That includes tourists, and we are targeting a doubling of our tourism revenues over the next five years, supported by the continuing rise in independent travel.

“As well as expanding our portfolio, we are investing in our in-centre experience and in technology to engage and delight our guests and meet growing demand for experiential retail from Generations Y and Z.”

New research carried out by the consulting group CACI, in partnership with McArthurGlen, highlights the importance of destination shopping for Millennials. While they are a digital generation, Millennials seek experience and authenticity from their leisure time, states the report.

With this in mind McArthurGlen is targeting younger shoppers aged 18 to 29, as research reveals that annual spend is at its highest among younger shoppers, and they visit a McArthurGlen centre twice as often as those aged over 50.

Mike Natas, McArthurGlen’s joint managing director of development, added: “Securing 1 billion euros to invest in new centres and expansions demonstrates the strength of investor confidence in our sector, and the growing demand from consumers for designer outlet shopping.”

CGI Images: courtesy of McArthurGlen

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