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Outlet Centers Proliferate in Europe

LAS VEGAS-Most of the industry's growth as of late has been in Europe, where between 1999 and 2005 no less than 56 centers were developed--three times more than were opened in the US during the same period.

By Brian K. Miller | Updated on May 26, 2007

LAS VEGAS-With hundreds of locations that in many cases are indistinguishable from lifestyle centers, the outlet center has traveled a long way from its warehouse-sale roots. Several players in the industry sat down together at the annual spring convention of the International Council of Shopping Centers this week to talk about the past, present and future of the industry.

There are 222 outlet centers in North America today and another 130 overseas totaling some 80 million sf, according to ICSC. Most of the growth of late has been in Europe, where between 1999 and 2005 no fewer than 56 centers opened, or about three times the number that opened in the US during the same period. Over the next two years, the first phases of another 32 projects are slated to come online, 25 of them in Europe.

Kenneth Gunn, an associate director with CACI information solutions, a London-based advisor to the retail industry, says the UK market in particular is actually becoming overbuilt to the point where the growth there will have to slow and individual locations will have to better differentiate themselves or face weakening sales. After the UK’s 48 centers, the next highest number of centers in any one European country is 15. “The outlet center market is increasingly crowded (in the UK), but there is still room for strong development elsewhere in Europe,” he said.

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