Europeans are finally catching on to the joys of outlet shopping. New malls are springing up from Manchester to Madrid, offering top labels for discounts of up to 70 percent. With a little careful hunting, shoppers can unearth a coveted Tag Heuer watch, the perfectly fitting Max Mara blazer or even a pair of last year’s Pradas–for $100! And unlike in America, where outlet centers are often generic bare-bones structures, Europe’s latest are stylish enough to lure shoppers hundreds of kilometers out of their way. Austria’s designer-outlet center in Parndorf, which opened two years ago, is built in the style of a traditional baroque farmhouse, with colors ranging from pink to bright yellow. The Troyes center boasts three restaurants. Greece’s Factory Outlet mall, located in a former mill outside Athens, offers banking and baby-sitting services. “We’ve tried hard to make the malls in Europe more esthetic and more interesting than they need to be for the U.S. market,” says Joe Kaempfer, the U.S. businessman who in 1995 opened the immensely popular Cheshire Oaks, outside Manchester. He joined with the British Airport Authority to form BAA McArthurGlen, which now operates 11 outlet centers in Europe.
What took so long? Outlet malls first appeared in America around 1980, and there are now about 300 scattered around the country. But in Europe, developers have had a much tougher time building them. “You can’t get the zoning and even if you can, the land is 10 to 20 times more expensive,” says Scott Malkin, chairman of Value Retail, a London-based company that has developed five outlet malls in Europe. “You’re limited in the hours you’re allowed to open, andthe designer brands have been very slow to warm up to the idea.” When Kaempfer first showed up in Britain in 1993, he was strongly discouraged. “I heard the mantra so often: Europeans just don’t want to buy designer clothes at discount prices.” He was also told that Europeans wouldn’t drive far to shop. Not so. Now 23 million people visit his seven British outlet centers annually. On the Continent, his malls attract 12 million shoppers each year who drop as much as £95 per visit. Some are tourists on holiday, but most others are locals who make repeated trips.
And they clearly relish the shopping experience–even if they don’t fully understand it. “I’m still not sure if the public appreciates the difference between full-price and outlet,” says Noelle Walsh, author of the Good Deal Directory, a listing of brand-name goods for discount prices. At the Factory, outside Madrid, Amelia Jimenez seems well aware that she’s hit the jackpot: a long dress “for New Year’s Eve,” she says. “I’ve paid less than usual because it’s from last year, but it’s great!” Like many European shoppers, she’s discovered the secret to looking like a million bucks for a whole lot less.
