Neinver sees 15% sales gain in 2011

Traditional retail continues to be challenging thanks to volatile European economies, but leading European outlet development company, Neinver, reported a
7% increase in visits to its centres this year resulting in a 15% sales uplift, delegates heard at this year’s International Council of Shopping Centres (ICSC) European Outlet Conference in Milan.

Consumers are not ready to give up the increasingly popular pastime of shopping, according to Neinver’s Eduardo Ceballos, who spoke at the conference. But they also don’t want to go to multiple places to shop, he added: 'Outlets deliver on both these accounts, as well as offering the lowest prices on goods.'

Two decades of expansion across Europe has delivered 190 factory outlet centres across the region serving 70% of the European population. But although some markets, such as the UK and Italy are considered to be mature with limited growth potential, significant new development opportunities exist in Germany and Central and Eastern Europe, the conference heard.

Holding back development in Germany, which currently has just six outlets serving a population of over 80 million people, is the country’s restrictive planning regime, which requires developers to secure both federal and regional planning permissions, often a long process with no guarantee of success. It is estimated that there is potential for a further 20-30 outlets in the country and currently plans for around 15 are being considered. However, in France, recent changes in the previously tough planning system have resulted in the success rate for planning applications rising from 45% to 74% since 2008, which should encourage a retail development boost to the country’s struggling economy.