Half of outlet centers' tenants are from fashion sector - report

A typical outlet center has at its disposal retail space of between 12,000 sqm and 25,000 sqm. It attracts tenants by offering goods at prices that are at least 30 percent lower than those offered by regular stores, according to the “Outlet Shopping Centres” report compiled by CBRE. Price is the distinguishing factor for outlet centers. When making the decision to open a store within an outlet facility, store owners become bound by a contract that obliges them to maintain lower prices. The report highlights that there are 13 facilities operating on the outlet center market at the moment. Generally, these centers are located in urban areas with the location enabling around 2 million visitors access to the scheme within less than 1.5 hours. The fashion sector is the one most strongly represented amongst outlet center tenants, with its share amounting to 50% of the total number. The sportswear and footwear sectors are also well represented,  with their share in outlet schemes amounting to 11.8% and 11.5% respectively. In turn, services have the weakest representation, with their presence oscillating at a level of 1%. Additionally, a characteristic common for the outlet concept is the absence of the restaurant section, i.e. the so-called food court, which is an integral part of a traditional shopping center. The report concludes there are potential areas in Poland where new outlet centers could be erected. Initial estimates point to the south and south-east regions as well as central Poland.