Factory Outlet Centres - Europe - February 2005

SUMMARY

With the notable exception of the UK, purpose built factory outlet villages only emerged as a newretail format throughout Europe during the 1990s. Modelled on US style schemes, the UK was the firstcountry to witness such centres with the likes of Clarks Village and Hornsea Freeport back in theearly 1990s. A new wave of development took place in the 1990s with a push into mainland Europe,initially in France and Switzerland, with schemes then coming on line in Spain, Sweden and Germany.Since the start of the new millennium, the focus has switched to Italy and Portugal and mostrecently the countries in former eastern Europe, such as the Czech Republic, Hungary and Poland.

At the present time there are 100 purpose built factory outlet centres operational in Europe,offering a total floorspace of 1,713,383m2. When Mintel last reviewed this market in 2003, therewere 80 schemes operational in Europe offering floorspace of 1,138,164m2.

About Mintels research:

Mintels latest report into this thriving retail market combines expert insight from our in-houseanalysts with the latest figures from the global real estates service, Cushman & WakefieldHealey & Baker. The results offer you an unparalleled overview of the dynamics of factoryoutlets across Europe, as well as the sectors prospects. Use Mintels research to: -- Analyse eachfactory retail market in the context of a countrys general retail scene -- Understand the issuesrestricting and encouraging the industrys progress, such as planning legislation -- Measure marketsizes and track growth -- Discover where in the 13 European markets covered there lies the mostpotential for further development -- Monitor the stability of your retail investments.

TABLE OF CONTENTS

Definitions

Background Data - Pan-European Comparisons

• Figure 1: Europe: Population by country, 2003
• GDP
• Figure 2: Europe: GDP per capita, 2003
• Consumer expenditure
• Figure 3: Europe: Consumer expenditure per capita, 2003
• Retail sales
• Figure 4: Europe: Retail sales per capita, 2003
• Retail businesses and outlets
• Figure 5: Europe: Number of inhabitants per outlet by country
• Retail employment
• Figure 6: Europe: Retail employment by country

Key Findings

• FOC growth
• UK leads
• Figure 7: Europe: Factory outlet centres, numbers and floorspace, November 2004
• Figure 8: Europe: Factory outlet centres, numbers and floorspace, November 2004
• Opportunities in Continental Europe
• Figure 9: Europe: Market shares of leading outlet developers by area, November 2004
• Figure 10: Europe: Market shares of leading outlet developers by area, November 2004

Outlook

Planned future space

• Figure 11: Europe: Factory outlet centres in the pipeline, numbers and floorspace, 2005-08
• Figure 12: Europe: Factory outlet centres in the pipeline, numbers and floorspace, 2005-08
• Figure 13: Europe: Factory outlet development by country, 2005-08 (numbers of schemes)

Future in the UK

The rest of Europe

• Germany
• Iberian Peninsula
• Italy
• Central Europe

Growth prospects

• Figure 14: Europe: Factory outlet centre growth prospects, 2004-07

Issues

Location

• Regeneration

Retail Leisure Synergy

• Leisure retailing
• UK leads the pack
• Europe follows behind

Legislation

• Germany
• Spain
• Italy
• France

Tenant Mix

• Entering foreign markets
• Shifts in retailer perception
• New tenants move in

Trends from the USA

• Facts and figures
• Challenges in the USA
• Trends to watch

France

Market characteristics

Factory outlet retailing in the retail environment

Planning policy

Market size

• Figure 15: France: Factory outlet expansion, 1994-2004
• Figure 16: France: Factory outlet centres in operation, November 2004

Planned future space

• Figure 17: France: Planned factory outlet centres, November 2004

Leading operators and market shares

• Figure 18: France FOC market share of leading outlet centre developers by area, November 2004

Germany

Market characteristics

Factory outlet retailing in the retail environment

Planning policy

Market size

• Figure 19: Germany: Factory outlet centres in operation, November 2004

Planned future space

• Figure 20: Germany: Planned factory outlet centres, November 2004

Leading operators

• Figure 21: Germany: Market shares of leading outlet centre developers by area, November 2004

Italy

Market characteristics

Factory outlet retailing in the retail environment

Planning policy

Market size

• Figure 22: Italy: Factory outlet schemes in operation, November 2004

Planned future space

• Figure 23: Italy: Planned factory outlet schemes, November 2004

Leading operators

• Figure 24: Italy: Market shares of leading outlet centre developers by area, November 2004

Portugal

Market characteristics

Factory outlet retailing in the retail environment

Planning policy

Market size

• Figure 25: Portugal: Factory outlet centres in operation, November 2004

Planned future space

Leading operators

• Figure 26: Portugal: Market shares of leading outlet centre developers by area, November 2004

Spain

Market characteristics

Factory outlet retailing in the retail environment

Planning policies

Market size

• Figure 27: Factory outlet centres in operation in Spain, November 2004

Planned future space

• Figure 28: Planned factory outlet schemes in Spain, November 2004

Leading operators and market shares

• Figure 29: Spain: Market shares of leading outlet centre developers by area, November 2004

UK

Market characteristics

Factory outlet retailing in the retail environment

Planning policy

Market size

• Figure 30: UK: Factory outlet expansion, 1997-2004
• Figure 31: UK: Factory outlet centres in operation, November 2004

Planned future space

• Figure 32: UK: Planned factory outlet centres, November 2004

Leading operators and market shares

• Figure 33: UK: Market shares of leading outlet centre developers by area, November 2004

The Rest of Europe

Background

• Figure 34: Factory outlet centres in operation & planned in rest of Europe, November 2004

Austria

• Planning policy
• Retail environment
• Market size
• Figure 35: Austria: Factory outlet centres in operation, November 2004

Belgium

• Planning policy
• Retail environment
• Market size
• Figure 36: Belgium: Factory outlet centres in operation, November 2004

Czech Republic

• Planning policy
• Retail environment
• Market size
• Figure 37: Czech Republic: Factory outlet centres in operation, November 2004

Hungary

• Planning policy
• Retail environment
• Market size
• Figure 38: Hungary: Factory outlet centres in operation, November 2004

Republic of Ireland

• Planning policy
• Retail environment
• Market size
• Figure 39: Republic of Ireland: Factory outlet centres in operation, November 2004
• Figure 40: Republic of Ireland: Planned factory outlet centres, November 2004

The Netherlands

• Planning policy
• Retail environment
• Market size
• Figure 41: The Netherlands: Factory outlet centres in operation, November 2004
• Figure 42: The Netherlands: Planned factory outlet centres, November 2004

Poland

• Planning policy
• Retail environment
• Market size
• Figure 43: Poland: Factory outlet centres in operation, November 2004
• Figure 44: Poland: Planned factory outlet centres, November 2004

Company Profiles

McArthurGlen

• Background
• Centre data
• Figure 45: McArthurglen: Factory outlet centres in operation, November 2004
• Figure 46: McArthurglen: Planned factory outlet centres, November 2004
• Centre Information
• Outlook and strategy

Concepts & Distribution

• Background
• Centre data
• Figure 47: Concepts & Distribution: Factory outlet centres in operation, November 2004
• Figure 48: Concepts & Distribution: Planned factory outlet centres, November 2004
• Centre information
• Outlook and strategy

Freeport

• Background
• Centre data
• Figure 49: Freeport: Factory outlet centres in operation, November 2004
• Figure 50: Freeport: Planned factory outlet centres, November 2004
• Centre information
• Outlook and strategy

REALM

• Background
• Centre data
• Figure 51: REALM: Factory outlet centres in operation, November 2004
• Centre information
• Outlook and strategy

AWG Outlets (Morrisons)

• Background
• Centre data
• Figure 52: AWG Outlets: Factory outlet centres in operation, November 2004
• Centre information
• Outlook and strategy

Outlet Centres International

• Background
• Centre data
• Figure 53: Outlet centres Internatiional: Factory outlet centres in operation, November 2004
• Centre information
• Outlook and strategy

Silvio Tarchini

• Background
• Centre data
• Figure 54: Silvio Tarchini: Factory outlet centres in operation, November 2004
• Centre information
• Outlook and strategy

Value Retail

• Background
• Centre data
• Figure 55: Value retail: factory outlet centres in operation, November 2004
• Figure 56: Value Retail: Planned factory outlet centres, November 2004
• Centre information
• Outlook and strategy

Appendix: Research methodology