Foreign tourist boost sales at Spain’s major luxury outlet centres
Concentrating most of the major outlet centres in Spain, within 40 to 60 km distance from city centre, Barcelona and Madrid are the focal attraction for both foreign travellers and locals seeking bargains of luxury branded products. According to Value Retail Spain, one of the largest outlet centre operators, outlet centres around Barcelona attract over 60% foreign tourists and the rest locals while Madrid’s surrounding outlet centres attract the opposite ration, with only 30% tourists.
According to a study by BNP Paribas Real Estate, in the past year, the financial crisis has boosted sales at outlet centres in Spain, however, a growing number of customers are purchasing cheaper products. The study also highlights than an increasing number of customers are favouring price over quality, buying more products with defects, such a trend being to the detriment of Spain’s retail market culture, overall.
Neinver, another major player in Spain’s outlet market highlights that its centres attract mostly consumers living in major cities and within maximum 40 to 50 minutes driving distance. An executive of Neinver, however, also points out that while the ”top brands at good prices” recipe is the key ingredient for successful marketing, outlet centres remain a destination of destocking products for the luxury brands. That is why, logistics and access to stocks is the key competitive advantage.
Acording to Acotex, Spanish Textile Association, outlet sales account for 13% of total retail sales in Spain, with an ascending trend. According to Acotex, of foreign tourists, Chinese are among the fastest growing number of customers, a Chinese customers spending on average 2.027 euros in Barcelona and 1.585 euros in Madrid at outlet centres.
adapted from La Vanguardia and BNP Paribas