Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Factory Outlets - UK - December 2016

“Despite a relatively saturated factory outlet market in the UK and a challenging retail environment, retail sales through factory outlet schemes continue to grow. The leading operators have tapped into an appetite for discounted clothing, offering value for money. However, beyond that, the best performers have continued to invest in the overall retail environment. This, combined with a move towards proximity outlet retailing, has spiked a new interest amongst young shoppers, which will further fuel growth in future.”

– Samantha Dover, Retail Analyst

This report is looking at the following areas:

  • Opportunities to encourage more frequent visits
  • Using digital to enhance outlet proposition
  • Attracting new consumer groups with compelling tenants

The market is dominated by a small number of leading operators and the larger schemes continue to outperform and drive growth in the sector, attracting high footfall and sales volumes with a strong tenant proposition. Furthermore, the move from a selection of the leading operators towards proximity outlet schemes has generated a new interest in outlet shopping, fuelling further growth by attracting a new younger demographic.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Areas covered in this Report
      • Executive Summary

          • The market
            • Retail sales forecast to reach £2.4bn in 2016
              • Figure 1: Retail sales through UK outlet centres excluding VAT, 2011-21
            • Clothing dominates retail sales through factory outlets
              • Figure 2: Estimated breakdown of retail sales through factory outlets (excluding VAT), 2015
            • Growth in consumer clothing and footwear expenditure slows
              • Figure 3: Annual percentage change in consumer expenditure, by quarter, Q1 2015-Q2 2016
            • The UK population continues to age
              • Inbound tourism boosted by the Brexit vote
                • Companies and brands
                  • Realm Outlets hold largest market share
                    • Figure 4: Estimated market shares of leading UK factory outlet operators, 2015
                  • McArthurGlen is the highest spend advertiser
                    • Figure 5: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by leading operators, 2015
                  • Advertising expenditure peaks in November
                    • Figure 6: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by month, Jan 2015-September 2016
                  • First hybrid full-price and outlet shopping centre in development
                    • The consumer
                      • A third of consumers have never visited a factory outlet
                        • Figure 7: Frequency of factory outlet visits, September 2016
                      • Time consumers willing to travel dependent on age and location
                        • Figure 8: Average time consumers are willing to travel to a factory outlet, by region, September 2016
                      • What consumers buy at factory outlets
                        • Figure 9: What consumers buy at factory outlets, September 2016
                      • More than a third want better discounts
                        • Figure 10: Factors that encourage consumers to shop at factory outlets, September 2016
                      • Seasonal events prove popular amongst broad range of consumers
                        • Figure 11: Interest in leisure facilities and events at factory outlets, September 2016
                      • Attitudes towards factory outlets
                        • Figure 12: Attitudes towards factory outlets, September 2016
                      • What we think
                      • Issues and Insights

                        • Opportunities to encourage more frequent visits
                          • The facts
                            • The implications
                              • Using digital to enhance outlet proposition
                                • The facts
                                  • The implications
                                    • Attracting new consumer groups with compelling tenants
                                      • The facts
                                        • The implications
                                        • The Market – What You Need to Know

                                          • Retail sales at factory outlets forecast to rise 6.9%
                                            • Clothing generates highest sales at outlet centres
                                              • Continued growth in consumer spending
                                                • Consumer confidence falls after Brexit vote but rising again
                                                  • The impact of tourism on the sector
                                                    • An aging population may change tenant mix
                                                    • Market Size and Forecast

                                                      • Retail sales at factory outlets reach £2.2 billion in 2015
                                                        • Figure 13: Retail sales through UK outlet centres excluding VAT, 2011-21
                                                        • Figure 14: Retail sales through UK factory outlet centres (excluding VAT), 2011-21
                                                      • Distribution of retail spending at outlet centres
                                                        • Figure 15: Estimated breakdown of retail sales through factory outlets (excluding VAT), 2015
                                                        • Figure 16: Estimated breakdown of retail sales through factory outlets (excluding VAT), 2015
                                                      • Forecast methodology
                                                      • Market Drivers

                                                        • Consumer spending on clothing and footwear
                                                          • Figure 17: Annual percentage change in consumer expenditure, 2010-15
                                                          • Figure 18: Annual percentage change in consumer expenditure, by quarter, Q1 2015-Q2 2016
                                                        • Uplift in consumer confidence
                                                          • Figure 19: Trends in consumer sentiment for the coming year, January 2015-October 2016
                                                        • An aging population in the UK
                                                          • Figure 20: Trends in the age structure of the UK population, 2011-21
                                                          • Figure 21: Trends in the age structure of the UK population, 2011-21
                                                        • Inbound tourism on the rise
                                                          • Figure 22: Overseas visits to the UK, 2010-15
                                                          • Figure 23: Annual percentage change in overseas visits to the UK and earnings, by month, 2016
                                                        • Rising car ownership
                                                          • Figure 24: Licensed cars in Great Britain, 2010-15
                                                      • Companies and Brands – What You Need to Know

                                                        • Cheshire Oaks is the top centre
                                                          • Realm is the leading UK outlet operator
                                                            • Bicester Village’s luxury shoppers generate highest sales density
                                                              • Leading operators increase advertising spend
                                                                • Using events to attract consumers
                                                                  • The UK’s first full-price and outlet hybrid scheme
                                                                  • Leading Players

                                                                    • Top 30 outlet schemes in the UK
                                                                      • Figure 25: Top 30 factory outlet centres in the UK, 2016
                                                                    • The latest factory outlet openings
                                                                      • Future developments
                                                                        • Leading operators and property managers
                                                                          • Figure 26: Leading UK factory outlet operators/property managers, 2015
                                                                        • Leading operators market share
                                                                          • Figure 27: Estimated market shares of leading UK factory outlet operators, 2015
                                                                      • Retail Innovation

                                                                        • The UK’s first full-price and outlet hybrid scheme
                                                                          • Figure 28: Princes Quay CGI, 2016
                                                                        • Using sport to engage consumers
                                                                          • Music to outlet shoppers’ ears
                                                                            • Bicester Village works with bloggers to promote assortment
                                                                              • Figure 29: The Hybrids at Bicester Village, 2016
                                                                            • Hackney Walk hosts workshop series
                                                                              • Social media drives communication to Chinese consumers
                                                                                • London Designer Outlet’s Brazilian Carnival
                                                                                  • Figure 30: London Designer Outlet Summer Carnival, 2016
                                                                              • Advertising and Marketing Activity

                                                                                • Leading operators increase advertising spend
                                                                                  • Figure 31: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, 2011-15
                                                                                • McArthurGlen is the biggest advertiser
                                                                                  • Figure 32: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by leading operators, 2015
                                                                                  • Figure 33: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by operator, 2011-15
                                                                                • Spending peaks in November
                                                                                  • Figure 34: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by month, Jan 2015-September 2016
                                                                                • TV is the biggest advertising channel
                                                                                  • Figure 35: Total recorded above-the line, online display and direct mail advertising expenditure on factory outlets, by media type, 2015
                                                                                • Key campaigns
                                                                                  • McAthurGlen Universal music campaign
                                                                                    • Bicester Village menswear campaign
                                                                                      • Figure 36: Bicester Village – Menswear: The New Standard, 2015
                                                                                    • Nielsen Ad Intel coverage
                                                                                    • The Consumer – What You Need to Know

                                                                                      • Factory outlet usage remains low
                                                                                        • People willing to travel 45 minutes on average
                                                                                          • Clothing is the most purchased product category
                                                                                            • Free parking is the factor most likely to attract consumers
                                                                                              • Demand for seasonal events is high
                                                                                                • Opportunity to draw shoppers in with an online browsing tool
                                                                                                • Who Shops at Factory Outlets

                                                                                                  • Almost a third have never visited a factory outlet
                                                                                                    • Figure 37: Usage of factory outlets, September 2016
                                                                                                  • Consumers typically shop less than once a year
                                                                                                    • Figure 38: Frequency of factory outlet visits, September 2016
                                                                                                  • Women are more likely to shop at outlets
                                                                                                    • Figure 39: Frequency of factory outlet visits, by gender, September 2016
                                                                                                  • Young people shop more frequently
                                                                                                    • Figure 40: Frequency of factory outlet visits, by age, September 2016
                                                                                                  • Usage is dependent on affluence
                                                                                                    • Figure 41: Frequency of factory outlet visits, by socio-economic group, September 2016
                                                                                                  • Those with children more likely to visit
                                                                                                    • Figure 42: Frequency of factory outlet visits, by parents and non-parents, September 2016
                                                                                                • Time Consumers Are Willing to Travel

                                                                                                  • Consumers will travel an average of 43 minutes
                                                                                                    • Figure 43: How long consumers are willing to travel to a factory outlet, September 2016
                                                                                                  • Millennials most willing to travel
                                                                                                    • Figure 44: Average time consumers are willing to travel to a factory outlet, by age, September 2016
                                                                                                  • Those in London and North East happy to travel
                                                                                                      • Figure 45: Average time consumers are willing to travel to a factory outlet, by location, September 2016
                                                                                                  • What Consumers Buy at Factory Outlets

                                                                                                    • Clothing drives outlet purchasing
                                                                                                      • Figure 46: What consumers buy at factory outlets, September 2016
                                                                                                    • Footwear second most popular product category
                                                                                                        • Figure 47: What consumers buy at factory outlets, September 2016
                                                                                                      • Affluence impacts purchasing
                                                                                                        • Figure 48: What consumers buy at factory outlets, by socio-economic group, September 2016
                                                                                                      • Young men shop at outlets for electricals
                                                                                                        • Figure 49: What consumers buy at factory outlets, by gender, September 2016
                                                                                                      • Clothing and homewares popular amongst mature women
                                                                                                          • Figure 50: What consumers buy at factory outlets, by age, September 2016
                                                                                                        • Repertoire analysis
                                                                                                          • Figure 51: Repertoire of what consumers buy at factory outlets, September 2016
                                                                                                      • Encouraging More Frequent Visits

                                                                                                        • People attracted by free parking
                                                                                                          • Figure 52: Factors that encourage consumers to shop at factory outlets, September 2016
                                                                                                        • Women most concerned with brand offer
                                                                                                          • Figure 53: Factors that encourage consumers to shop at factory outlets, by gender, September 2016
                                                                                                        • Young shoppers attracted to city centre outlets
                                                                                                          • Figure 54: Factors that encourage consumers to shop at factory outlets, by age, September 2016
                                                                                                        • Affluent consumers demand a pleasant environment
                                                                                                          • Figure 55: Factors that encourage consumers to shop at factory outlets, by socio-economic group, September 2016
                                                                                                      • Interest in Leisure Concepts

                                                                                                        • Seasonal events prove popular
                                                                                                          • Music and art reach a broader audience
                                                                                                            • Figure 56: Interest in leisure events at factory outlets, September 2016
                                                                                                          • Cinemas rank as the top leisure facility
                                                                                                            • Figure 57: Interest in leisure facilities at factory outlets, September 2016
                                                                                                          • Children’s activities are a top priority
                                                                                                            • Figure 58: Interest in children’s leisure facilities and events at factory outlets, September 2016
                                                                                                            • Figure 59: Interest in leisure facilities at factory outlets, by parental status, September 2016
                                                                                                        • Attitudes towards Factory Outlets

                                                                                                          • Demand for an online browsing tool is high
                                                                                                            • Figure 60: Attitudes towards factory outlets, September 2016
                                                                                                          • The threat of online is driven by convenience
                                                                                                            • Figure 61: Attitudes towards factory outlets, by demographics, September 2016
                                                                                                          • Women attracted to outlets by strong brand proposition
                                                                                                            • Figure 62: Attitudes towards factory outlets, by gender, September 2016
                                                                                                          • Young people drawn to high street with discounting
                                                                                                            • Figure 63: Attitudes towards factory outlets, by age, September 2016
                                                                                                          • Jewellery and watch shoppers want luxury
                                                                                                            • Figure 64: Attitudes towards factory outlets, by products purchased, September 2016
                                                                                                        • Further Analysis – Target Groups

                                                                                                            • Figure 65: Attitudes towards factory outlets, target groups, September 2016
                                                                                                          • Key characteristics
                                                                                                            • Price Concerned
                                                                                                              • Product Focussed
                                                                                                                • Convenience Seekers
                                                                                                                  • Apathetic Shoppers
                                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                      • Abbreviations
                                                                                                                        • Consumer research methodology
                                                                                                                        • Appendix – Market Size and Forecast

                                                                                                                          • Forecast Methodology

                                                                                                                          Factory Outlets - UK - December 2016

                                                                                                                          US $2,963.91 (Excl.Tax)