Sales at European outlet malls enjoyed double-digit growth in the first half of the year and outpaced pre-pandemic levels, according to research from Cushman & Wakefield.
Outlet malls across major operators recorded a 16.9% year-on-year uplift in sales compared with the same period in 2022, and an 11.3% increase on H1 2019.
In the UK and Ireland, sales were up by 8.6% year-on-year in H1 this year. Sales increased by 9.9% compared with H1 2019, offsetting dampened consumer demand and the removal of the ability to reclaim VAT.
Germany lagged behind the rest of Europe with just 0.2% growth versus H1 2019, on the back of weak consumer sentiment. However, sales were up by 19.1% on H1 2022.
Operators in Iberia posted a positive rebound, benefiting from the return of international tourists, as well as the addition of summer flights from America to regional cities. Sales performance was up 18.7% compared with 2019, and 19.2% year-on-year.
Researchers found that Eastern Europe rallied from the initial impact of the war in Ukraine, with sales at 16.7% above their 2022 level and nearly 3% ahead of 2019. The region has additionally seen a 26.7% increase in average spend, an indication of businesses adapting and succeeding in challenging operating environments.
In the UK and Ireland, footfall was up by 6.8% on the previous year, and by 4% compared with 2019.
Overall footfall across outlet malls inched down by 1.4% from 2019, but showed year-on-year growth. Operators in the Germany, Eastern Europe, France and Benelux, South Alps and Iberia markets all posted double-digit growth.
Richard Ching, partner for retail and outlet malls at Cushman & Wakefield, said: “Following a peak in performance in 2019, where it emerged as the star performer of retail destinations across Europe, the outlet market has seen challenges from both the pandemic and the cost-of-living crisis. We know from our experience in 2008 that outlets have performed well in times of economic uncertainty, appealing to bargain-hunting customers domestically and internationally.
“What we continue to see is that outlet operators are the masters of reinvention, and our latest data shows that this ability to adapt their offer and services has led to an increase in spend, and in turn has more than compensated for a small drop in footfall – indicating increased basket size and a customer committed to shopping when they decide to visit.
“It is through these results that we can see that outlet operators aren’t just proving they can outperform in the face of economic headwinds, black swan events and structural changes in the market, but that they can continue to go from strength to strength.”
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