Comment: Why outlet retail isn’t just surviving, it’s thriving
By Stephen Toal, head of retail and leisure insights, and Jenny Banks, head of Leeds property management, at Savills
For years, outlet retail was seen as a secondary option, a place for brands to offload end-of-line stock or for bargain hunters to pick up last season’s leftovers. Today, that perception is outdated. In fact, the outlet sector has not only weathered economic uncertainty but is a resilient and strategic channel in the UK retail mix.
From discount driven to brand led
The biggest transformation in the outlet sector has been its shift from discount driven to brand led retail. While value remains important, modern outlet centres are no longer defined purely by discount. Premium and lifestyle brands are investing in the channel with intent, creating dedicated outlet ranges and curating store experiences that align with their full price retail presence.
This change has helped outlets shed the image of being ‘lesser than’ other formats. Brands like Molton Brown and Rituals, for instance, have evolved their outlet strategy significantly, no longer reserving core lines solely for full price stores. Today, customers can find their favourite products at outlets in environments that reflect the same quality and service standards as flagship locations. This consistency builds trust, attracts new customer segments and strengthens brand equity.
A strategic retail channel
Rather than competing with high streets or retail parks, outlets now complement them. Brands see outlets as a vital part of a broader omnichannel approach. Outlets offer a cost-effective way to grow physical presence, test new formats, or reach customers in areas where full price stores might not be viable.
Furthermore, fit out and operational costs are generally lower, allowing brands to invest more in customer experience. In many cases, outlet stores feature high spec interiors that mirror those of full-price stores. And with the integration of technology such as in store iPads for stock checking, click-and-collect, or home delivery, outlets are increasingly aligned with the seamless retail journey consumers expect.
Why consumers keep coming back
Cotswolds Designer Outlet, which recently opened its doors
For consumers, outlets offer a powerful combination of value, experience, and convenience. In uncertain economic times, value is a key driver of spend, but outlets deliver more than just savings. Visitors are drawn in by premium brands, exclusive products, and well-designed environments that feel far from bargain-basement retail.
Modern outlet centres are also destinations in their own right. With free parking, dining options, play areas, and well-maintained public spaces, they encourage longer dwell times and social visits. Shoppers often make a day of it, which not only increases spend per visit (typically 20% higher than traditional retail, according to Savills research) but also deepens brand engagement.
A model built for resilience
Outlets have proved remarkably robust, even during periods when other formats have struggled. Their hybrid nature, offering the value of retail parks with the customer experience of high street stores, makes them adaptable and attractive to a wide range of shoppers.
Moreover, the sector has shown it can evolve quickly. As consumer behaviour shifts, outlets are innovating to stay relevant, whether through exclusive outlet only lines, refreshed store designs, or smarter use of data to tailor offers and communications.
The future is bright
Far from being a post-Covid bounce or a temporary retail trend, the resurgence of the outlet sector represents a longer term shift in how brands and consumers view value and experience. Outlets have carved out a unique and increasingly important place in the UK retail landscape, not by competing with other channels, but by complementing them. As retail continues to evolve, the outlet sector’s blend of flexibility, strategic value, and consumer appeal ensures it’s not just surviving, but thriving.