Expectations are for a double-digit growth in 2019, as the developer plans to add a supermarket, two cafés or fast-food restaurants and another 2,000 square meters of apparel stores, an effort currently in progress.
“With these projects we will complete Fashion House Militari; we will invest EUR3 million to EUR5 million in the supermarket and up to EUR500,000 in the two cafés or fast-food restaurants,” says Sorin Ioan Blaga, general manager of Liebrecht & wooD Romania.
“We’ve had double-digit growth across the board for Fashion House in the past two years.”
Traffic in Fashion House Militari went up 12% to 1.2 million or 1.3 million people last year, and a conversion rate of 71%. This means that 71 out of 100 people who walked in actually did some shopping.
The outlet added such brands as Koton, English Home, Under Armor and Penti, while the retailers added in 2017 include Levi’s, Motor Jeans and Tina R.
Fashion House is part of the greater West Park Militari project that Liebrecht & wooD developed, which also includes Hornbach, kika and Jumbo stores. The outlet opened in 2008.
Liebrecht & wooD’s official says Romania is not that developed in terms of outlets, which retailers with stores in malls use to efficiently manage their inventories. Products from older collections sell for about 30% cheaper in outlets to make room for new collections in stores.
“Outlet-type retail is usually located at a greater distance from the crowded areas in cities. Bucharest would need at least one more outlet, which is why we chose to build a similar one to Fashion House Militari in Cernica. Construction work will begin in the third quarter. We expect to get the construction permit in July and then deliver the project in 2020.”
(English version by Loredana Fratila-Cristescu)