Polish retail outlet centers improved their sales results during the economic downturn while shopping centers suffered, Colliers International’s research shows.

Sales in surveyed outlet centers increased by 20 percent y/y in 2009. Meanwhile, sales in shopping centers fell, on average, by some three percent y/y.

“There are certainly centers where the fluctuations were greater, because the analysis is about centers in Poland’s eight largest cities, which have a stable market position,” said Agnieszka Piekarska, a specialist in retail space at Colliers.

According to Colliers, the economic downturn forced shoppers to reconsider their budgets and many thus chose to shop in outlet centers, where all stock is discounted by 30-70 percent.

At the same time, this benefited some retailers, providing an efficient tool to manage stock. Overheads at outlet centers are also cheaper, with rents costing about 20 percent less per square meter than in regular shopping malls.

Nevertheless, outlet centers still compete for certain brands.

“Some labels, especially luxury labels, withheld or continue to withhold from entering outlet centers in fear of [hurting] their image,” Ms Piekarska said.

There is currently about 100,000 sqm of outlet center retail space in Poland, with some 35,000 sqm scheduled to become available in 2012.

From Warsaw Business Journal by Victoria Ziarkowski

SOurce : www.wbj.pl, 9th August 2010