As London’s first designer outlet hoves into view we assess their popularity, the retailers that use them and how they’ve fared during the recession
Why are we talking about them now?
The London Designer Outlet - London’s first designer outlet centre - started marketing its units last week. Located in north London, adjacent to Wembley Stadium and Arena, it is expected to open in late 2013 and total 350,000 sq ft of retail and leisure space, including 85 retail units.
How many designer outlets are there in the UK and Ireland?
With about 44 outlets, the UK has the largest and most mature outlet market in Europe. Outlets, which are generally out of town, are luring young fashion brands to sit alongside designer labels.
Which retailers use them?
Colin Woodhead of retail consultancy Woodhead Associates says most high-end designers use outlets, including Armani, Burberry and Hugo Boss. A growing number of high street chains also use outlets, such as Jaeger, Ted Baker and Superdry.
How do they work?
Designer outlets sprung up about 15 years ago. They offer designer and high-street labels, at heavily discounted prices of up to 70%. Stock is often a couple of months or so behind the latest items.
“You can constantly be clearing your racks and moving stock along that hadn’t sold as fast as you had liked,” says Woodhead.
Who are the major operators?
McArthurGlen has seven outlets in the UK, including York, Ashford in Kent, and Cheshire Oaks in Chester. It operates almost 1.7 million sq ft of retail space in the UK.
Other big outlet operators include Value Retail, which has nine outlets in Europe, including Bicester Village near Oxford, Quintain and Realm.
Designer outlets are also going online. EBay’s Fashion Outlet sells products from 30 clothing brands including Superdry, Karen Millen, Ted Baker and Bench at up to 70% discounts on high street prices.
It’s currently the auction site’s fastest-growing sales channel, achieving sales of £4m in the three months from June to August.
How have they fared in the recession?
Outlet centres have thrived in the recession. McArthurGlen, for example, says that it has seen double-digit growth in sales in the UK so far this year, compared with the previous year.
Disposable incomes have been squeezed during the economic downturn but brand loyalty means consumers are prepared to make a trip out of town to pick up their favourite labels at a knockdown price.
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