Retail outlet centres, known for their brand-lead discount store formats and offers, have seen a significant leap in retail and leisure brand growth in the past years.
The European Outlet Industry Review, 2025 (EOIR) produced by Ken Gunn Consulting, estimates brand turnover across Europe’s 210 outlet centres of €23 billion in 2024 — around 23% higher than in 2019 and 7.2% ahead of 2023. Outlet centre sales are likely to grow to €30bn by the close of 2028 as extensions and new outlets increase floorspace by another 8%.
The EOIR is the only outlet sector report that reviews the locations of every outlet brand in Europe, combining these with site performance factors to create vitality rankings for both outlet centres and occupier brands.
The outlet centre remains a gleaming jewel in the crown of the retail property sector and, given the projected growth over the next few years, it will continue to be so. There remains underserved locations, design and ownership/operation opportunities to further enhance sector returns and growth.
The new report ranks top five outlet centres as: Bicester Village (UK), Serravalle, (Italy),
Roermond (the Netherlands), La Roca Village (Spain) and Noventa di Piave (Italy). The top five ‘most improved’ outlet centres are: Seville Fashion Outlet (Seville, Spain), Fashion House Pallady (Bucharest, Romania), Designer Outlet Algarve (Faro, Portugal), Oslo Fashion Outlet (Oslo, Norway) and Brugnato 5Terre OV (Brugnato, Italy).
588 new brands have appeared on the outlet scene since July 2023 and he points out that retailers are growing sector presence. The EOIR 2025 ranks Rituals expansion with 14 more stores at the top of a retail tree that includes: Jack & Jones (12), Under Armor (10), Swarovski (10) and Sketchers (9) across Europe. The top five occupiers in all European Outlet Centres are Levi’s, Guess, Adidas, Puma and Tommy Hilfiger.
While outlet centres are present in thirty countries, the EOIR indicates that just six countries account for 66% of floorspace and 74% of all European brand turnover. Italy has more outlet stores than any other country (2,879) while the UK has the most brands represented (823).
Outlet centre floorspace in Europe will reach 4.4 million sqm by the close of 2027. Despite this growth, there remains considerable scope for geographical and positional expansion, where the format is underrepresented. The most profitable opportunities are not always in the most obvious places, particularly where positioning opportunities are concerned.
It is possible that European outlet floorspace could grow by 25% to five million sqm. However this will require more stable geopolitical and financial conditions.
For now, expansion is focused at Tier 2 and Tier 3 sites, where fleet of foot operators such as Via Outlets, Neinver, Promos and Retail Outlet Shopping continue to deliver substantial value for their investors. This is being achieved through design, placemaking, retail mix, scale and technological innovations, which better adapt assets to their markets, increase income and achieve upward tier mobility. Since 2019, these operators have increased their market share of European outlet brand sales by 2%, while the sector's traditional (and still dominant) leaders have seen their market share of brand turnover decline by 2%.
The success of 'smaller multi-site operators' highlights potential for investors to consolidate ownership and build portfolio holdings in the sector. Only thirty operators manage more than one outlet centre and thirty-seven investors own more than one outlet asset. Operators who manage a single, smaller site, often have weaker brand negotiating positions and less financial resources for essential remodelling and remerchandising.
With less than half of all European outlet centres having gone on to add further phases, there remains substantial potential for investors to unlock growth and add value in partnership with experienced multi-site operators. In 2024 Realm was acquired by Multi Corporation and Retail Outlet Shopping by Groupe Frey, while Promos has added new mandates in Italy.”
The EIOR is now in its 8th year. With its finger-on-the-pulse of retail brand activity, trading performance and operator strategy, it is the most authoritative and detailed report on the the European outlet sector. The inclusion of the annual ranking of all 210 outlet centres makes it an essential tool for brands, operators, investors and new entrants.
The EOIR report is now available via www.kengunn.co.uk. Hard copy reports can be purchased for £1,450 + VAT for UK based businesses or €1,745 for businesses based in Europe. Alternatively, the digital edition can be purchased for £2,350 + VAT for UK based businesses or €2,830 for businesses based in Europe.
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