Growing demand for destination shopping underpins McArthurGlen’s €1 billion development pipeline.McArthurGlen is investing in new centers and expansions to cater to growing demand from shoppers and tourists seeking the finest retail experiences and great value for money. The company’s investment programme includes four new developments and seven center expansions which are scheduled to open over the next three years in some of the most densely populated catchments and key tourist destinations in Europe and Canada.
Julia Calabrese, McArthurGlen’s CEO, said: “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-center experience and in technology to engage and delight our guests and meet growing demand for experiential retail from Generations Y and Z .”
Market research by the consulting group CACI, carried out 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. Annual spend in McArthurGlen’s portfolio is highest among younger shoppers, and those aged between 18-29 visit a McArthurGlen center twice as often as those aged over 50.
CACI’s analysis of shopping habits in the UK reveals increasing growth in Destination Mission shopping, which is defined as ‘a big shopping trip that has either leisure or pleasure at its core, typically achieved through the strength and uniqueness of a retail venue’s offer’. In 2018, 21% of all UK shopping trips were Destination Missions, compared to 16% in 2013.
Further enhancing the quality of its offering, McArthurGlen welcomed 50 new brand partners to the group during the past 12 months, including Billionaire, Chloe, Delpozo and Jimmy Choo. They join McArthurGlen’s portfolio of the world’s best-known brands which includes Armani, Burberry, Calvin Klein, Dolce and Gabanna, Gucci, Hugo Boss, Levi’s, Nike, Prada, Polo Ralph Lauren, Puma, Tod's, Tommy Hilfiger, Valentino, and Versace.
McArthurGlen’s strategy of enhancing its Food and Beverage (F&B) offering continues to resonate with consumers and the Group’s F&B sales are on track to grow by 10% by the end of 2018. CACI’s analysis of McArthurGlen customer behaviors highlights the positive impact of F&B engagement, with overall spend 53% higher for those who included food or drink during their shopping trip.
New F&B brands to partner with McArthurGlen in the past 12 months include Bistrot Milano Centrale, Comptoir Libanais, dean&david, Frites Boutique, Panino Giusto, and Yo! Sushi, while Sacher Eck, the luxury cafe arm of Vienna’s iconic Sacher Hotel, opened its first ever shopping center location at McArthurGlen Designer Outlet Parndorf in Austria in September.
More than 800 new store opportunities will be created by McArthurGlen’s development pipeline by 2021, while the group’s collective 90-minute catchment will grow to nearly 180 million shoppers.
Key developments include McArthurGlen Designer Outlet Málaga; three developments In the UK underway delivering over 40,000 sqm of new, high-quality outlet space which collectively represents a €335 million investment; new designer outlet in Remscheid, Germany; three center expansions in Italy, at La Reggia near Naples, Noventa near Venice and Castel Romano near Rome; in France is planning the first and only luxury designer outlet to serve Western Paris; McArthurGlen Designer Outlet Vancouver Airport’s second phase will open in Summer 2019 in Canada.