Q&A: Outlet shopping in 2024 and beyond
Outlet shopping destinations have thrived in 2024, continuing a post-pandemic trend that has seen them withstand the ongoing financial pressures which have put many retail centres at risk.
This year, centres such as London Designer Outlet in Wembley Park and the North East’s Dalton Park Outlet have posted record sales, a testament to the strength of the outlet shopping market.
But what has driven outlet shopping’s success in 2024? And what lies in store for next year?
Matt Slade, retail director at London Designer Outlet owner Quintain, and Simon Tothill, property and development director at Robert Hitchins – the developer of Cotswolds Designer Outlet, set to open next year – gave Completely Retail News their thoughts on the outlet shopping market.
Matt Slade and Simon Tothill
How have outlet shopping destinations been able to evolve throughout 2024?
- MS: “During 2024 we saw outlet shopping gaining traction amongst younger shoppers, especially across lifestyle and footwear brands. At London Designer Outlet we have looked to capture this audience by working with our brands to ensure they are presenting the most in demand merchandise ranges, offering shoppers a powerful mix of aspiration and affordability.
“As a result we have not only attracted new lifestyle and footwear brands to London Designer Outlet, but also been home to some of the best performing outlet stores with our current retailers’ European portfolios.”
- ST: “Brands seek out outlet spaces that will complement their online presence while also providing engaging, destination-style environments. This has the power to serve both price-conscious and experience-driven shoppers, which not only has cross-generational appeal, but is also able draw regional visitors, tapping into the huge tourism potential of this Cotswolds location.
“In particular we are seeing a shift to outlet destinations becoming more family-friendly and dog-friendly as they look to welcome a younger group of new customers. We are seeing this push to quality also echoed in-store, as brands prioritise the highest standards of shop-fit, lighting and merchandising as well as the breadth and depth of the stock on offer.”
Despite continuing economic difficulties, outlet shopping destinations have continued to succeed. Why is this?
- MS: “Outlet retail remains resilient thanks to the unique in-person retail experience it offers compared to online shopping. Shoppers can not only access aspirational brands at value, but also experience a sense of discovery in a relaxed environment which can’t be replicated online.
“Meanwhile, as shoppers increasingly want to experience a full family day out, locations such as London Designer Outlet and our proximity to Wembley Park allows us to offer visitors a variety of experiences ranging from sporting events to pop concerts through to a wide variety of leisure attractions, which other retail destinations can’t provide.”
- ST: “Simply put, the main reason for outlet’s continued success is that it offers aspirational brands at accessible prices in a relaxed, welcoming environment. Price-conscious and style-conscious shoppers can enjoy the allure of luxury while seeking out savings.
“Meanwhile, brands continue to prioritise outlet as part of their omnichannel strategies as it is a proven method of maintaining the pace of new customer acquisition as well as retaining existing customer interest and loyalty, all while preserving the premium experience of the brand.”
London Designer Outlet
We’re seeing more leisure and F&B at outlet centres – are these assets becoming destinations in their own right and not just a place to pick up a bargain?
- MS: “A good mix of F&B options is critical to a successful outlet centre and at London Designer Outlet we have continued to curate a diverse array of choices for our visitors. From grab and go favourites such as Pret A Manger and Subway, through to established names like Pizza Express and Nandos, as well as growing names such as Opa! and Afrikana, these all help to increase dwell time across the outlet and keep visitors coming back for more.
“As outlets continue to ensure they provide a full day out for their visitors, we expect leisure to become an increasingly important component to a successful outlet. At London Designer Outlet we have the benefit of our proximity to Wembley Park which is home to multiple leisure attractions which help to draw in visitors, but we are seeing more outlets work with leisure operators to enhance their offerings.”
- ST: “The vision for Cotswolds Designer Outlet is to create a unique retail destination that forms part of a ‘full day out’ experience in this gateway to the Cotswolds location. Outlet shopping has always been a ‘slow and sociable’ shopping experience, blending leisure and retail – from a diverse F&B offering including grab-and-go and casual dining, to the guest-focused customer experience – and all in a well-curated ‘Instagrammable’ environment.
“The design intentionally evokes a ‘feel good’ factor; part of what makes outlets so memorable is the thrill of uncovering unexpected treasures from favourite brands at discount, and so the commercial placemaking and F&B strategies are designed to enhance the overall experience and boost dwell.”
What support does the outlet shopping sector need to continue to thrive into 2025 and beyond?
- MS: “We expect to see outlet shopping continue to thrive during 2025 as shoppers continue to seek out aspirational brands at low prices. To help maintain this momentum we are excited to see retailers investing in their outlet stores and putting a real emphasis on providing a quality customer experience.
“Whether that it is through introducing new technologies such as smart dressing rooms, or redesigning their store layouts, retailers are always looking at new ways to appeal to modern shopping needs.
“Meanwhile, we hope to see even more new brands increase their presence in the outlet space during the next 12 months. Last month we were proud to become the home of Miniso’s first UK outlet store, and we hope to see more traditional high street and shopping centre brands seek outlet space.”
- ST: “Outlet brands must remain relevant to their increasingly savvy shoppers; investing in both the physical and digital experience for shoppers, from the quality of store fit-outs to the depth of the range and customer experience in-store, while also ensuring a seamless digital experience across all of the brand’s channels.
“The last few years has seen sports and athleisure brands dominate the outlet space, so over the next 12 months it would be good to see how other categories innovate and enhance their outlet presence and range.
“We are also really encouraged by the increased interest from independent operators as it is important for outlet destinations to not only be home to international brands, but also engage with their local surroundings and provide interest and connectedness in its communities, something we have been very intentional about in our tenant mix strategy at Cotswolds.”
What can we expect from Cotswold Designer Outlet when it opens?
- ST: “In this unique location at Junction 9 of the M5, we anticipate Cotswolds Designer Outlet will serve a significant catchment area from Bristol to Birmingham as well as tapping into the tourism market that this area’s historic and cultural attractions generate.
“Our guests will experience a stunning outlet scheme which has been inspired by the beauty of its Cotswolds setting, along with a strong line up of national and international fashion, beauty, lifestyle and homewares brands.
“Success here is all about partnership – that our retail brands, partners, and local stakeholders are all working together to create an outstanding shopping and dining destination that’s both aspirational and welcoming, and firmly established as part of the region’s tourism appeal. We are working with our brands to offer quality and affordability combined with technology to provide the ultimate shopping experience, and with a hospitality mindset where visits will become memorable for more reasons than simply buying new trainers or clothes.”
Christine Grace, leasing director at Multi-Realm, which will manage Cotswolds Designer Outlet, also gave her thoughts:
- “We are taking our responsibility for launching a new shopping destination into the UK very seriously – catering to all of the shifts in consumer tastes and behaviours and the advancements we have seen within brands’ physical stores and experiences.
“The development will also reflect its local and regional communities by supporting independent pop-ups, artisans and emerging brands. Whilst still preserving the unique and relaxed form of retailing that comes with a premium outlet, there will also be a strong focus on using technology with a bespoke app and other data processing to enable more efficient marketing and effective management.”
A CGI of the completed Cotswolds Designer Outlet
As one of the newest outlet centres, how has years of experience within the sector influenced the development of Cotswold Designer Outlet?
- ST: “The outlet sector is one of the more consistent outliers in real-world retail. Today, outlets play a critical role as part of a brand’s omnichannel strategy, offering a premium shopping experience with the promise of quality at an affordable price point.
“This is the driving force behind the significant brand interest we’ve had at Cotswolds Designer Outlet across all categories – from fashion and homewares to beauty and accessories. Today we’re proud to announce that we’ve already secured retailers on 95% of the floor area, which are either exchanged or in legal negotiations—despite being some months away from opening – which is a truly remarkable sign of brand confidence in this scheme and location.
“As consumer confidence grows in 2025, we can expect that dynamic, well-positioned retail outlets will continue to prove the appeal of physical retail that offers both value and experience. The design and feel of the scheme has also benefitted from a thorough study of existing schemes with the aim of adopting good practice and presentation to provide a fantastic offer in an attractive setting.”