Brendon O`Reilly, Fashion House Group: Outlets
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Transcript of Brendon O`Reilly, Fashion House Group: Outlets
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Successful retail operational management in the outlet centre
Brendon O’Reilly Managing Director ofFASHION HOUSE Group
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Outlets: What Are They?
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Outlet Centre
Minimum 30% up to 90% discounts for
every product every day!
Previous seasons, Overruns, Made For Outlet, Bought For
Outlet
15,000 m2 – 30,000 m2 GLA
Edge of Town, Out of Town
Fashion, Homeware and Foodcourt
140-180 minutes shopping time
Outlet Centre v. Shopping Centre
Shopping Centre
Full price
This year/season, Fashionable, Necessary
goods
50,000 m2 – 120,000 m2
GLA
City Centre, Suburbs
Grocery, Services, Electronics, Fashion,
Home wares, Cinema, Bowling, Karting
20-40 minutes shopping time
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Shopping Centre Consumer
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• Age 18-30• Often singleo Fashionableo Trendyo Shops according
to 3R rule:
Right product Right timeRight place
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Outlet Centre Consumer
• Age 30-55• Married or in a
stable relationshipo Brand awareo Educatedo Value orientated
shopper
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Outlets: Why Do They Exist?
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1970’s & 80’s
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• Development and growth of Private Label
• Branded products• Development in manufacturing• Seasonality increase• New deliveries = Sales• Requirement to dispose of old
stocks while protecting the image and reputation of the brand
• Outlets = cash generator, profit centre
$20
$10
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Spring Summer Autumn Winter
Why do Outlet Centres exist?
4 Traditional Fashion ‘Seasons’
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The New Fashion ‘Seasons’
Spring x 2 Summer x 2 Autumn x 2 Winter x 2
Why do Outlet Centres exist?
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Key elements of an outlet centre retail operational management
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Outlet centre management structure
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Retail Operational
Director
Retail Operational
ManagerFacility Manager Marketing
ManagerAdministration
Manager
STOCKSTAFFOFFER
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Delivering brand and value every day
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Every day every customers can find real discounts at 30%-70% off original prices
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Clear information, dual pricing presented
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Price policy (visible discount)
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Attractive shop windows
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Price policing and maintenance of a true minimum discount at ALL times.
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Supported by PR efforts which help educate customers on why we can offer such discounts
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Unique shopping experienceon the example of FASHION HOUSE Outlet Centre Moscow
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FASHION HOUSE Outlet Centre Moscow
GLA 28,540 sq m, 165 stores, 1,820 parking spaces
Opened in June 2013
Architectural Theme: Traditional Russian Architecture., Interior Design Theme: „Window to Europe”.
Catchment – 21.5 M inhibitants within 90 minutes drive
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Unique shopping experience „Indoor street with
outdoor feeling”
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User friendly environment The outlet
centre under a roof makes shopping comfortable.
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Unique shopping experience
•Great emphasis was placed on the interior details –the shop fronts, the different colours and the choice of materials in order to offer customers a unique shopping environment and shopping experience.
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User friendly environment Clear indication
signs help customers navigate around the scheme.
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User friendly environment
•Attractive food court offer.
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User friendly environment A customer service
desk at the main entrance with consultants available all the time during opening hours to assist customers.
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FASHION HOUSE Group
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FH Group - How do we ensure success?
Partnership approach with our tenants
Flexible cost base (turnover rent)
Expert management staff – international experts supporting local
experts
Landlord investment into marketing
Total focus on customers
Largest outlet developer/operator in CEE
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Portfolio
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Internationally proven business model
International Operational Expertise based on projects in other CEE countries with outlet know how from UK
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Internationally proven business model
Landlord – Tenant partnership approach with long term relation
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FASHION HOUSE Awards
FASHION HOUSE Outlet Centre Moscow Winner: Europaproperty Green Building Awards 2012 Winner: REX Marketing Award - B2B Marketing 2013 Winner: RLI International Outlet Centre 2014
FASHION HOUSE Outlet Centre Warsaw Winner: Europaproperty CEE Outlet of the Year 2008 Voted by tenants into 4th place in Europe in the 2009
CBRE – Ecostra Factory Outlet Centre Performance Report
Ranked as 5th Best Managed Shopping Centre by Polish Association of Tenants, 2011
Winner: Europaproperty Best Performing Outlet Centre of the Year 2013
FASHION HOUSE Outlet Centre Sosnowiec Winner: Europaproperty CEE Outlet of the Year 2009 Voted by tenants into the TOP 10 in Europe in the 2009
Ecostra Factory Outlet Centre Performance Report
FASHION HOUSE Outlet Centre Gdansk Winner: Europaproperty CEE Outlet of the Year 2010 Ranked as 3rd Best Managed Shopping Centre by Polish
Association of Tenants, 2011
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Thank you