McArthurGlen Group, today announced that it has seen footfall across its portfolio stabilise, with almost 45M guests visiting the group’s centres globally in the six months from 1 May* to 1 November 2021.
With international travel impacted throughout the pandemic, the group effectively activated its local catchments and saw resilient performance from domestic and European tourism.
McArthurGlen also noted a significant change in consumer spending habits. Across all 26 of its centres, customers have come back with a much stronger intent to purchase which is also driving performance:
- Since the centres re-opened, each guest is spending over 11% more during their visit vs 2019.
- At the same time, they are spending 9% more in each individual store vs 2019.
“After the pandemic we have benefitted from a renewed desire from customers to enjoy the emotional connection of shopping, and the demand from our local catchment has been stronger than ever,” said Susie McCabe, Co-CEO.
“Throughout this time, we have focussed on delivering a safe and enjoyable open air shopping experience for our guests. We are consistently evolving to address changing consumer shopping habits and have therefore invested in enhanced services and facilities, including digital shopping capabilities, sustainability initiatives and elevated leisure offerings.”
“Our centres have always been home to the world’s most prestigious luxury, designer, and premium brands, and this year we have further elevated our offering, welcoming Givenchy, Off-White, Valentino and Celine to name a few,” she continued.
“The all-important Christmas period is still to come, and we feel positive about 2021 and beyond. We’re pleased to report that despite lengthy centre closures due to Covid-19 lockdowns, we are on track to exceed our sales expectations for the second half of this year.”
2021 HIGHLIGHTS
Progress at Designer Outlet Paris-Giverny
McArthurGlen is pleased to share an update on what will be its 27th development, Designer Outlet Paris-Giverny. Set to open in early 2023, the new centre will be the only luxury outlet destination west of Paris, located just 45 minutes by car from the French capital. The group will invest more than €200M into the project, which will become a key attraction for the local population as well as the 40M tourists who visit Paris each year.
With 20,000 sq m of contemporary retail space, the new centre is already attracting interest from brands, with 70% of the 100 available units either leased or in advanced negotiations.
The centre will also be home to an artisan village, the Maison des Métiers d’Art, an immersive destination dedicated to promoting and showcasing the very best of Norman and French craftsmanship. McArthurGlen has partnered with celebrated designer, Mathieu Lehanneur, to create the architectural concept for the space.
The Maison des Métiers d’Art has been developed in collaboration with the Chamber of Commerce and Industry (The CCI) and the Chamber of Crafts and Artisanship of the Eure (The CMA).
Designer Outlet West Midlands
In April, McArthurGlen opened what is set to be the UK’s only standalone new shopping centre this year, located just 30 minutes from Birmingham, the nation’s second largest city.
When Designer Outlet West Midlands opened, total sales were over 140% above the group’s expectations and it welcomed 80% more guests than anticipated.** To date, the centre’s exciting brand mix has attracted an engaged, affluent shopper.
Today, McArthurGlen can report that over 90% of Designer Outlet West Midlands’ customers were satisfied with their experience in centre. Meanwhile, 83% of its total guests said they would be likely to return.
Nick Brady, Group Managing Director, Leasing said: “Designer Outlet West Midlands is arguably one of physical retail’s 2021 success stories. On the doorstep of one of the most affluent and densely populated catchments in the UK, the centre welcomed over 1.5M guests in its first six months of trade**. Plans for Phase II of this unique shopping destination are now underway, presenting brands with an exciting opportunity to capitalise on this new centre’s success.”
Home to top premium brands including Coach, Calvin Klein, Kate Spade, Tommy Hilfiger and Hugo Boss, and global hospitality brands such as Five Guys, Pizza Express, Wagamama and Starbucks, Phase I of the centre is now over 80% committed, with several new stores set to open this year.
One year of Designer Outlet Málaga
In February, McArthurGlen celebrated the one year anniversary of Designer Outlet Málaga, the group’s first centre in the Spanish market and the first designer outlet in the south of Spain. In the first 12 months the centre welcomed nearly 3.5M guests, despite the interruptions to trading caused by national lockdowns. The centre has benefited from the growth of McArthurGlen’s partnerships with key brand partners, opening Prada, Armani and Furla stores, as well as introducing exciting new concepts to its portfolio including the sustainable Spanish brand, Ecoalf. Today, the centre is almost 100% leased.
Centre expansions
Designer Outlet Serravalle
As part of McArthurGlen’s continued commitment to growing its business in Italy and enhancing its leisure and retail proposition to offer guests an exceptional day-out experience, June 2021 saw the completion of a €40M investment plan in Designer Outlet Serravalle, near Milan. The new phase includes six retail units, a renovated guest services lounge, premium parking and a dedicated 6,000 sq m ‘Play Land’ – home to the first ever water park to open in a European shopping destination.
Designer Outlet La Reggia
Further to the group’s investment in Designer Outlet Serravalle, Designer Outlet La Reggia has recently opened its new €30M Phase III, featuring 25 new units and spanning 5,000 sq m. The investment reinforces the centre’s position as a leader in Southern Italy, and also presents a great opportunity for the community creating approximately 200 new jobs.
Sustainability
McArthurGlen is firmly committed to reducing its impact on the environment and making a positive contribution in each of the 26 communities that it operates.
Following a successful trial in four of its centres, in October McArthurGlen launched its ‘Recycle Your Fashion’ project across its entire portfolio, providing guests with more sustainable end-of-life options for their garments. The initiative, part of a significant partnership with CTR Group, delivers a circular recycling scheme with 100% of clothing donations reused, re-worn or recycled. All of the proceeds from each bag of recycled garments are donated to a centre’s chosen local causes, providing McArthurGlen guests the opportunity to support their communities.
The Recycle Your Fashion programme is part of a larger Corporate Social Responsibility (CSR) commitment which will see the group aim to recycle 25 tons of clothing by 2022/23, while also supporting local community partners.
New digital services
McArthurGlen understands the importance of adapting to create omni-channel buying experiences for its guests. The group has introduced new digital services to enhance the customer experience in today’s evolving retail landscape.
Click & Reserve – the first McArthurGlen-owned digital product platform, currently being trialled at Cheshire Oaks. Created in partnership with Shopify, brands can showcase their best collections, while customers can create their multi-brand basket, reserve the products they like online and then pay and collect in store. There have been more than 55,000 Click & Reserve visits to date. Average order value is 3x higher than centre average transaction value.
Booking System – digital appointment scheduling and queue management system enabling guests to book times to shop in participating stores via their smartphone and removing the need to physically queue or book their appointment for a dedicated shopping session. The group is also trialling a new system in Serravalle, more focused on services and supporting the launch of its new Play Land. McArthurGlen has had more than 800K customers using this service to date.
Dropit – app-based handsfree shopping service allowing customers to drop off their shopping bags and arrange collection/delivery via their smartphone.
Virtual Shopping – now live across its portfolio, McArthurGlen’s virtual shopping programme allows brands to promote their own bespoke services (virtual video appointments, WhatsApp selling, digital catalogues) via their dedicated brand pages. More than 300 brands are participating across the McArthurGlen portfolio, with almost 700 stores supporting this service.
