Successful retail operational management in the outlet centre

Brendon O’Reilly Managing Director ofFASHION HOUSE Group

Outlets: What Are They?

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

Shopping Centre Consumer

4

• Age 18-30• Often singleo Fashionableo Trendyo Shops according

to 3R rule:

Right product Right timeRight place

Outlet Centre Consumer

• Age 30-55• Married or in a

stable relationshipo Brand awareo Educatedo Value orientated

shopper

5

Outlets: Why Do They Exist?

1970’s & 80’s

7

• 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

8

Spring Summer Autumn Winter

Why do Outlet Centres exist?

4 Traditional Fashion ‘Seasons’

9

The New Fashion ‘Seasons’

Spring x 2 Summer x 2 Autumn x 2 Winter x 2

Why do Outlet Centres exist?

Key elements of an outlet centre retail operational management

Outlet centre management structure

11

Retail Operational

Director

Retail Operational

ManagerFacility Manager Marketing

ManagerAdministration

Manager

STOCKSTAFFOFFER

Delivering brand and value every day

Every day every customers can find real discounts at 30%-70% off original prices

Clear information, dual pricing presented

Price policy (visible discount)

Attractive shop windows

Price policing and maintenance of a true minimum discount at ALL times.

Supported by PR efforts which help educate customers on why we can offer such discounts

Unique shopping experienceon the example of FASHION HOUSE Outlet Centre Moscow

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

Unique shopping experience „Indoor street with

outdoor feeling”

User friendly environment The outlet

centre under a roof makes shopping comfortable.

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.

User friendly environment Clear indication

signs help customers navigate around the scheme.

User friendly environment

•Attractive food court offer.

User friendly environment A customer service

desk at the main entrance with consultants available all the time during opening hours to assist customers.

FASHION HOUSE Group

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

Portfolio

Internationally proven business model

International Operational Expertise based on projects in other CEE countries with outlet know how from UK

Internationally proven business model

Landlord – Tenant partnership approach with long term relation

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

Thank you