European outlet specialist McArthurGlen Group has invested EUR 100 mln in the Greek outlet market. The Group opened McArthurGlen Designer Outlet Athens to the public on 2 June.
The 110-brand centre - the group's sixth European opening in the last three years - comprises just under 21,000 m2 of retail space split over two levels, and is located near the town of Spata, close to the international airport and 30 minutes' drive from central Athens.
McArthurGlen said that despite being rocked by severe economic instability, Greek consumers are 'designer-literate' with a strong brand culture, which serves to fuel demand for designer and luxury brands at 35-70% less. Due to the size of Greece, McArthurGlen has initially focussed on the major city of Athens, with five million people living within the 90-minute catchment of the Designer Outlet and a further six million visitors to the city each year.
Gary Bond, CEO Development at McArthurGlen, told PropertyEU: 'Greece is a new market for us, the lease structure is very different and we've run into all the legal challenges you have learning about a new market place. But the market doesn't have anything to compare with a McArthurGlen designer outlet, which offer a unique environment where shopping meets leisure, the architecture and setting reflects local style and character.'
' The customer experience is maximised, whether given the facilities, the full calendar of events and activities, or from the stores themselves, with the brands working closely with our McArthurGlen Retail Academy on all issues relating to retail. That's something Greece has never seen and the reason we went there.'
Greece is still an attractive market for designer brands despite its beleaguered economy and sovereign debt woes, Bond maintained. 'There's still undersupply in Greece and Athens compared to other countries. Full-price designer shops trade very well and we believe they will continue to do so, even in recession. Designer brands are not particularly cheap but the Greeks are still buying clothes. Sales are even 10% higher than in Italy.'
Bond also sees opportunities in southern Spain and southern France, in particular regional towns with large catchment areas. The developer has already announced the launch of two new centres in France - the group already has two existing centres, in Troyes and Roubaix. One of the new centres is located near Vernon, west of Paris, so tapping into the prosperous western Paris catchment zone - and a second centre near Marseille, both of which are due to open in 2014.
'We have decided to focus on Western European countries because we understand the marketplace and because designer brands are already established in the high streets and have excess stock. For both of our new schemes in France, we’ve had a lot of good political support which is very important in France.'
Extensions are another key focus, Bond said. The Group currently has seven extensions under way totalling 65,000 m2: a third extension for Designer Outlet Roermond in the Netherlands, as well as a fourth phase at its Designer Outlet Parndorf centre near Vienna, a third phase at Castel Romano near Rome, a second phase at Barbarino near Florence, a third phase at Veneto near Venice, a third phase at La Reggia near Naples (the centre opened in February 2010) and a third phase at Swindon in the UK. Bond: 'All our developments are being made bigger and better. The sites we have are so strong and there’s so much demand from both customers and the retailers. That's a good business model."
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