McArthurGlen reports 14 percent rise in revenue as tourist shopping recovers

McArthurGlen Group, Europe’s leading owner, developer and manager of designer outlets, has reported a “solid” 14 percent year-to-date rise in total revenue from across its portfolio, driven by a rise in footfall and average spend per visitor.

In a statement, McArthurGlen, which manages 25 designer outlets in 8 countries, including in the UK, Canada, Austria, France, Germany, Italy, the Netherlands, and Spain, contributes the rise in revenue, compared to 2022 figures, on an 11 percent rise in footfall and a 3 percent increase in average spend per visitor.

Joan Jove, co-chief executive of McArthurGlen Group, said: “Our consistently strong performance over the past three years, despite substantial market challenges, demonstrates the resilience of our business and that our retail proposition continues to resonate with consumers throughout Europe and Canada.”

The company added that with the Christmas trading period still to come, it’s already on track to deliver total sales of approximately 5.5 billion euros by the end of the year.

McArthurGlen: recovery of international tourism has been “particularly strong”

McArthurGlen also adds that there has been a “particularly strong” recovery of international tourism across all of its locations this year, with tax-free sales almost returned to pre-pandemic levels. Year-to-date tax-free sales are 65 percent above 2022 levels, with top nationalities, including visitors from the Middle East, Greater China, the US, India and Southeast Asia.

The recovery has also been helped by the addition of 70 new brand partners to its centres and opened over 300 new stores in 2023. New additions include Lanvin, Vivienne Westwood, Sophia Webster, Clarins, Red Bull Racing, Worst Behaviour (WRSTBHVR) and Saucony.

2023 also saw the opening of the group’s newest shopping destination, McArthurGlen Designer Outlet Paris-Giverny, which debuted in April, serving “the fashionable catchment to the west of Paris”. The outlet offers a mix of premium and luxury labels, including Moncler, Roberto Cavalli and Missoni, as well as Boss, Lacoste, Coach and Tommy Hilfiger, all at a minimum discount of 30 percent year-round.

Paris-Giverny also opened its Maison des Métiers d’Art in June, called GVRNY, an immersive space dedicated to showcasing the rich and diverse craftsmanship of the Normandy region.

Nick Brady, group managing director of leasing, at McArthurGlen Group, added: “Throughout 2023, we have continued to focus on elevating our brand mix. From leading luxury labels to exciting streetwear concepts, and dine-in brasseries to casual street food, our tailored approach to leasing ensures that all our guests enjoy a successful shopping trip.”

McArthurGlen: expansion plans for Canada, the UK, Spain, Italy and the Netherlands

Looking ahead, growing demand for destination shopping underpins the Group’s development pipeline, with the ongoing expansion programme including new phases for its Vancouver, West Midlands, Málaga, Roosendaal and Castel Romano centres.

In the UK, Designer Outlet West Midlands will hit phase II, following the launch of the development’s first phase in 2021. Plans are now underway for an additional 98,000 square feet, which will add 50 new brands to the centre. Once completed, the project will span 285,000 square feet with over 100 units over the two phases. The first stage of this new development, featuring an initial 25 stores, is scheduled to open in summer 2025.

While the Vancouver Designer Outlet is currently planning a significant 65,000-square-foot expansion to add 27 new luxury and premium stores. This phase is set to open in Summer 2025. In Spain, Designer Outlet Málaga’s phase II will introduce 70 new stores, and Designer Outlet Castel Romano in Italy is moving into phase IV, adding 30 new stores.

McArthurGlen has also received preliminary permissions for its phase III expansion of its Designer Outlet Roosendaal in the Netherlands and expects it to be completed by 2026.