On average each customer visits the outlet four or five times a year and the average spending per visit is EUR90, says Brendon O’Reilly, managing director of Fashion House group, part of Belgium’s Liebrecht & wooD.
“The average spending increased in the past years, as a result of two factors: a better mix of brands, as well as improving economic situation (in Romania i.e.),” O’Reilly says.
Fashion House, which opened in Bucharest in 2008 is part of the West Park project of Belgium’s Liebrecht & wooD, which also includes a Hornbach do-it-yourself store, a kika furniture store and a Domo home appliances store.
“Romania is among the countries where it was very difficult to introduce the outlet concept and make it grow. The economic crisis “wiped” at least two-three years from the development of the retail industry, but I am happy to see that the sector shows signs of recovery. (…) more and more brands are entering the local market.”
A recent survey by real estate consultant CBRE shows 80 new brands have entered Romania in the last couple of years and opened 170 stores.
The Fashion House representative expects the outlet center to be fully rented by the end of the first quarter next year.
Brendon O’Reilly did not say how many customers Fashion House outlet center gets a year but previous data put the number at about 1.4 million per year or a daily average of 3,800. Although the number is lower than the number of shoppers at a mall, O’Reilly says that 80% of those who walk into the Fashion House actually buy something. The percentage is much lower in malls.
Fashion House outlet center has a 10,900 square meter area, which is only the first phase of the center opened in 2008. It plans to inaugurate the second phase, which will cover about 5,000 square meters in 2017.
“The market is changing and as a result, we will probably have bigger entertainment areas in the second phase of Fashion House Militari.”
Fashion House will also open a second outlet, this time in Cernica, east of Bucharest. The first phase will comprise 10,000 square meters with the possibility of expansion to 12,000 to 14,000 square meters.
“The development of this second outlet center will be directly connected to the evolution of the retail spaces in Bucharest. Our target is to sign the first lease agreements in 2016, and to open the center in 2017. Circa 40% of Fashion House Militari tenants expressed their desire to be present in Cernica as well, one example being Adidas.”
The outlet will be part of the Cernica Park, a EUR110 million real estate development of Liebrecht & wooD, which will include a hypermarket, a shopping gallery and DIY and sporting goods stores, according to the latest data available.
(English version by Loredana Fratila-Cristescu)