Cotswolds Designer Outlet: Q&A with the team behind the development – plus the latest pictures
Construction continues to progress at Cotswolds Designer Outlet in the southwest of the England, one of the few new outlet destinations in development in the UK this year.
Led by developer Robert Hitchins, Cotswolds Designer Outlet is being delivered in two phases and is set to create 186,000 sq ft of outlet space for up to 90 fashion, sport, lifestyle and F&B brands.
With less than a year till Phase One opens, the scheme is already 75% exchanged or in legals. Outlet retail specialist Multi-Realm (formerly Realm) is leasing and operating the scheme.
Completely Retail News spoke to Christine Grace, leasing director at Multi-Realm, and Simon Tothill, property and development director at Robert Hitchins, about outlet shopping and how development at the scheme is progressing:
While high streets and shopping centres are still feeling the pinch of the cost-of-living crisis, how are outlets still able to report good performance and what does this say about overall retailer confidence?
Christine Grace and Simon Tothill
- CG: “The outlet retail model is a key requirement for fashion and lifestyle brands as part of their omnichannel strategies, and retailers are absolutely on board with the value and purpose that outlets provide as part of their portfolio.
“At its core, is the agile partnership approach of the turnover lease model which gives brands greater control and deeper data insights; this requires a focus on collaboration and proactive management, working in tandem to achieve greater results and sales. This is particularly relevant when customer loyalty and spend has been tested by years of economic uncertainty, and cost-of-living pressures.
“Through outlet schemes, retailers can continue to retain customer interest and loyalty by offering value and quality at more accessible price points, all the while maintaining the allure of luxury and a premium experience. Importantly, at a time when marketing budgets are under pressure, outlets are a proven method for brands to maintain the pace of new customer acquisition.”
- ST: “We’ve had a very positive response from brands across all key outlet categories – fashion, athleisure, homewares, outdoor and beauty – and the fact that we’re already 75% exchanged or in legals this far ahead of opening proves the enduring appeal of the outlet model and retailer confidence in this sector.
“We’re seeing continued outlet expansion amongst fashion and footwear brands, as well as emerging players from health and wellbeing sectors. Outlets have simply become more and more relevant at a time when discretionary spend is under pressure, allowing shoppers to access quality brands without compromising on their lifestyle; the enduring appeal of outlet is directly linked to the rise of price consciousness across all generations.”
Leisure and F&B play an important role in most successful retail schemes, what does it mean for outlet retailing, and what can we expect to see at CDO?
- CG: “What’s unique to outlets is that operators and brands are co-creating the experience through ‘commercial placemaking’ – there is a clear correlation between investment in the physical environment, and increased dwell and spend.
“Outlet environments are so service-driven, well-manicured and ‘Instagrammable’ that they cannot fail to create an elevated and relaxed guest experience. This all contributes to the ‘feel good’ effect that is so synonymous with outlet destinations.
“Ultimately, the leisure element in outlet really is provided by the combination of brands in this unique environment where the ‘hunt for unexpected treasures’ makes for a memorable and rewarding day out. The F&B strategy is very much designed to complement this customer journey and extend dwell time.”
- ST: “Dwell time in outlet retailing is typically longer than in traditional shopping centres, and a big part of the appeal of outlet is the full ‘day out’ experience, from ease of parking to quality architecture in beautifully landscaped open-air environments.
“The F&B element is central to the overall personality of an outlet scheme. Branded, well-established national F&B operators are certainly important, but there is also a big opportunity to seek out local and regional specialists who add an authentic sense of place connected to this unique Cotswolds location.
“Pop-ups and kiosks work incredibly well in this setting, and will keep the scheme rooted in the community, which is particularly relevant for the younger generation of shoppers.”
How do brands (fashion brands in particular) think about outlet within their omnichannel strategy, especially when thinking about their full-price offer?
- CG: “Outlet is a proven, and valid, part of omnichannel strategy, whether that brand is shifting from online only, or exploring how to grow from concession-based operations into physical formats.
“Outlet is much more than a channel for clearance stock; the model offers greater control, flexibility and risk-mitigation than other retail formats, and in so doing give brands a huge opportunity for growth that maintains their brand integrity, without jeopardising their full price operations.
“We know that the outlet model is ideal for premium athleisure and lifestyle fashion brands, and many of them have been expanding and diversifying their outlet portfolios to incorporate wider ranges and complementary services, for example offering alterations, repairs or personalisation.”
- ST: “The level of collaboration between retailers and operators is one of the key attractions of outlets, and this applies to both well-established fashion brands, as well as independent and emerging fashion labels that are shifting from online-only to growing their physical portfolio by trialling short-term units.
“At Cotswolds, we’re working together to curate the right balance to maximise turnover income and exposure, as well as creating opportunities for new entrants and established brands to complement each other in a line up, with the added interest of local brands and pop ups.
“For fashion brands, the fit out is hugely influential in the success of the store, and we’ve been working hard to exploring ways to maximise the in-store experience, as these brands pay very close attention to the blend of stock, enhancing the point-of-sale experience and creating moments for customer connection.”
Do you feel that we’re seeing the balance between online and bricks-and-mortar retail settle down after 10 years of disruption, and where does outlet sit within that dynamic?
- CG: “There is a big difference in the experience of hunting for deals online during Black Friday sales, or even being outbid on eBay. Outlet shopping is fundamentally about discovery and when a “find” is hit upon, it motivates consumers to take the plunge in a relaxed setting, which is why retailers and outlet operators continuously innovate to keep the concept fresh and place enormous importance on the experience.
“Customer spend at outlet is far less likely to suffer high return rates, as the extra dose of brand experience at an outlet creates the feel good factor that can often lead to higher spend. Today, we’re seeing younger shoppers increasingly drawn to outlets for quality, value, and the promise of ‘unexpected treasures’. Consequently, outlets must seamlessly integrate with a brand’s online and full-price presence.”
- ST: “As we add to the UK’s outlet destination count, we place enormous importance on the differentiation that outlet brings, by delivering a genuine experience that is both inclusive and accessible for shoppers. Equally, we know how outlet adds value to brands as part of their successful omnichannel strategies, and in this regard location and experience are central enabling retailers to reach and engage with more customers.
“At Cotswolds, we expect our customers to be from a broader demographic given our location at a major junction on the M5 connecting Bristol to Birmingham. Integrating the retail element with the tourism appeal of the Cotswolds gives brands a lot of opportunity to test, explore and play with different formats, merchandising and events, that complement the online and in-person experience, with the added benefit of using live, real-time shopper and visitor data for the location, to be responsive and nimble to the local and regional market trends.”
Cotswolds Designer Outlet is one of the only new outlet destinations on site this year – what are the key factors influencing today’s outlet schemes, as compared to more historic assets?
- CG: “Outlet brands are now far more interested in their use of space and adjacencies. They have had 30 years to evolve their strategies to determine their optimal store size, refine their flagships and understand how they individually drive and convert footfall. We are seeing the quality of shop-fits, breadth of stock, digital screens and premium fixtures and fittings are all evident in the latest wave of 2024 store plans.
“Lighting too is another area where both internal and exterior illumination is on a par with the best full price stores. Outlet shop-fits sell the brand as much as they sell merchandise, and this is reflective of the way retailers see outlet stores as customer acquisition channels.
“Newer outlets and those undergoing transformations are focusing on attracting this younger demographic through social media-led marketing strategies, curated food and beverage offerings, and placemaking activities, all while maintaining a premium experience.”
- ST: “We have always had a clear vision for Cotswolds Designer Outlet, which is to cater to the regional catchment between Bristol and Birmingham – located as we are strategically at Junction 9 of the M5 – while targeting a premium ‘full day out’ experience to establish it as a destination within the Cotswolds itself.
“Clearly, there is an opportunity to tap into the £3.6bn annual tourism expenditure that the Cotswolds’ historic and cultural attractions generate, with Tewkesbury on our doorstep. We looked to other customer-centric sectors – tourism and hospitality especially – and understood the vital importance of design, experience and service.
“We have been able to design the overall experience from scratch, so the site is hardwired for ease and convenience – from the customer journey from the M5, to the premium landscaping and ambience – as we know visitor patterns and frequency differ enormously today to the historic models which assumed quarterly outlet visits only.”
In pictures: the latest from Cotswolds Designer Outlet
Completely Retail News was also given the latest look at construction at the scheme – which commenced in autumn 2023.
The first phase of Cotswolds Designer Outlet is set to open in Spring 2025.
