WITH Serious Pressure on Retail Spending Increasingly a Feature of the High Street As a Result of the Almost "Over Mentioned" Recession, Those Offering Discounted Prices Could Be Busier Than Usual at This Time of Year, Says Mike Birkett*.

THE credit switch-off is forcing families to rethink how their pounds are being spent. With unemployment now a spectre on the horizon, falling residential values and inflation in the wings, value retailers could be heading for something of a bonanza.

This could include Factory Outlet Centres (FOCs). End of line, last year’s fashion, it really does not mean a great deal if you can be kitted out at half the price of the high street.

Such is the appeal of the FOC that several vie with each other for our regional retail spend - Jacksons Landing in Hartlepool, Royal Quays in North Tyneside and Dalton Park, outside Sunderland.

However successful these schemes are, there is competition from beyond the region such as at Gretna Green, York, Hornsea in East Yorkshire and even the central belt of Scotland.

FOCs attract a mobile, car-borne, audience happy to drive for several hours for a day’s FOC shopping.

Some shoppers have been known to stay overnight to make the most of the a day’s shopping such are the discount attractions and the range and choice of goods from well-known household retailers such as Adidas, Next, Marks & Spencer, Reebok, Kurt Muller, Julian Graves and Oasis. The categories covered include accessories, cosmetics and toiletries, the home, men’s and ladies’ fashion, speciality food, sports and leisure, books, jewellery and gifts, toys, lingerie, shoes and so it goes on - a discount high street but well away from traditional high streets. So have FOCs got it all their own way?

Sadly, no. For internet retailing is serious competition with the same discounts. This is an increasing challenge as the benefits of shopping online with next day deliveries sinks in.

That said, FOCs will still command a presence in the retail hierarchy of particular regions and with marketing a particular skill that an FOC can use to good effect, as opposed to town and city centres which cannot because of so many inter-retailer conflicts, the FOC will remain an important focus.

*Mike Birkett is director of retail agency at Atisreal

Source: The Journal - Newcastle-upon-Tyne By Mike Birkett, November 05, 2008