Great success for spaces where you can buy products from major traditional brands cheaper. This suits clients, but also real estate developers.
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Brands Avenue, McArthurGlen… These brands are known to the general public for their low-priced products. This is what we call in English the “outlet” market, these sales spaces which offer overstocked items from major brands at prices significantly lower than those available in traditional stores. These are generally old collections or second-rate products, offered up to 30% cheaper.
Clothing, sporting goods, confectionery… Items which do not experience the general rise in prices, hence their success. Due to inflation, customers are rushing to the stalls of these supermarkets which have seen their turnover increase since the surge in prices observed in traditional stores. Up to 15% more activity and the average purchaser basket now stands at 130 euros. Customers do not hesitate to drive up to two hours, sometimes more, to go to these factory outlets located in regions other than their place of residence. Which increasingly arouses the desire of real estate developers.
>> Purchasing power: the French are turning away from promotions
Factory outlets today represent around 450,000 square meters of retail space in France spread over around twenty sites. According to a study published by the Cushman & Wakefield firm specializing in commercial real estate, more and more factory outlet operators are investing in buildings and investment funds are taking a position.
Real estate investors more than traders
One of the best-known brands in France, Marques Avenues, was bought last June by the Mata Capital fund, a French management company, approved by the Financial Markets Authority which, with its fifty employees, manages around two billion euros of real estate assets on behalf of institutional investors or private family groups. A heavy business not really threatened by internet commerce. The only possible obstacle is administrative in nature with the policy of zero land artificialization which limits urban sprawl, which pushes existing stores to restructure in order to reinvent themselves.