Outlet shopping is in

With eyes firmly on wallets in these somewhat uncertain times, consumers’ search for bargains in the retail space has ramped up.

Fashion spending tends to falter when the economy and job security are under fire, so the prospect of discounted clothing, footwear and accessories resonates with careful shoppers.

Chris Beasleigh, Bayleys’ national director retail sales and leasing, says retail outlet shopping hubs where customers can buy branded end-of-line and end-of-season stock at less than normal retail prices on a permanent basis, is a particularly active segment of the leasing market.

“Our Auckland team has just negotiated a lease with Adidas for a store within the well-established Westgate outlet hub in the original town centre where owner New Zealand Retail Property Group has been proactive in creating a destination outlet centre as part of its wider retail portfolio.

“Adidas has joined Bendon, Converse, New Balance, Puma, Asics, Timberland, Skechers, Platypus and other branded outlet stores in a convenient location with parking close to other high-profile retail precincts and amenities.

“Comparative shopping is just as relevant in a discount environment as it is within a shopping mall where brands compete for consumer dollars.”

The ability for brands to offer genuine products that are either out-of-season or over-stocked in a dedicated outlet space allows these operators to streamline offerings within their flagship stores, curating them to keep current stock front-and-centre.

“It’s a win-win and I think we are going to see even more demand for outlet premises from retail operators as they seek to retain market share or reposition themselves within a changed retail environment post-COVID,” says Beasleigh.

Auckland Airport recently announced plans for a fashion outlet centre development within the broader Airport precinct – a first for a New Zealand airport, but a model widely embraced internationally.

Similar outlet centres can be found in Brisbane, Perth and Vancouver, with premium and lifestyle brands at discounted prices attracting spend from locals, along with domestic and international travellers (when such travel is allowed).

The outlet shopping model is proven in New Zealand with the established player Dress Smart having sizeable and successful centres in Onehunga and Christchurch hubs, while in the coastal Bay of Plenty suburb of Pāpāmoa, the fully-leased Fashion Island retail outlet precinct remains a firm favourite with shoppers.

Meanwhile in Wellington, Outlet City Tawa Wellington – formerly Dress Smart but rebranded following a change of ownership in 2013 – has 30 stores and attracts shoppers from across the Wellington region and beyond.

But the concept goes beyond the dedicated outlet shopping centre model.

The Kāpiti Coast town of Ōtaki has carved out a name for itself as an outlet shopping destination with its main street featuring big name outlet stores, pulling people in from the Manawatū and greater Wellington region, along with attracting travellers passing through the town.

“The town has put itself on the map as a bargain shopping destination and it’s had positive spinoffs for Ōtaki as a result,” says Beasleigh.

Beasleigh says outlet centres tend to have high occupancy levels, are usually complemented by food and beverage offerings to round out the shopping experience, and are located close to transport networks making them convenient and appealing for a wide consumer group, and attractive for staff within the stores themselves.

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