Independent’s Day

Leasing outlet space to independent brands, an article featured in Retail Destination Magazine

Historically outlets have been underpinned by international anchor labels so what has driven the recent interest in independent brands?

In the last decade outlets have learnt to be both long and short sighted, despite the important role of tourism and extended catchments for many schemes. The reach of centres has adapted to be far more welcoming to the more frequently visiting shoppers from the immediate and intermediate catchments as data has been able to quantify their lifetime value and annual spend. Even before the pandemic significantly impacted longer range travel we knew there as a demand for independent and regional brands and this interest has been converted into pop-ups and longer term occupancy for a number of reasons.

What are the benefits of introducing smaller independent brands to an outlet scheme?

Independent brands tend to be more fluid and flexible so they can change strategy on pricing, promotion or merchandise layouts very quickly. In Realm outlets they will have a helping hand with experienced retail and F&B managers, skilled in interpreting their trading data and enhancing performance.

Outlets are also entrepreneurial and commercial places, where ideas come about through partnership and trialling is possible. For example, we have seen some of our interiors brands offer workshops and masterclasses, some indie cafe operators welcome regular business networking groups and distilleries offer experiences such as mixology and tasting classes.

Independent brands even open up opportunities for new and younger audiences through social media. Many of the deals we have done have been seen as marketing driven as they deliver more than just turnover. With a big increase in engagement, followers, views and likes these deals ultimately benefit the scheme as a whole as they entice new customers.

Outlet shopping has become considerably more popular with brands and consumers alike but there is an imperative to avoid “clone centres”. With many schemes having similar brand line-ups there has been a requirement to ensure originality. Welcoming a few indie and regional brands is a great way of providing variety – you could say it is leasing’s contribution to placemaking, giving centres more local roots and an authentic sense of place while supporting the local economy and a centre’s wider ESG strategy.

Interestingly all of these added advantages of independent brands do not feature price – they provide their own unique service and experience which complements the outlet value proposition.

What are the pitfalls to watch out for with independent brands?

I think this is ultimately about clearly defining expectations at the outset. Outlets are about collaboration but there is a risk that operators may have to spend too much time nurturing a smaller inexperienced brand if financial targets are unrealistic. This is where staggered opening hours or a pop- up in an already white boxed unit is a better option so the risks are engineered out before taking the next step to extend the lease length.

Although pricing is not the be all and end all for independent brands there does still need to be a base line of promotional activity to increase conversion and a system of stock replenishment in place otherwise there is a potential for customer disappointment. Authenticity is also important so limited time offers or additional savings need to be genuine and policed accordingly to build trust.

Which independent retailers most suited to outlets?

FOOD & BEVERAGE BRANDS – adding flexibility, originality and something different, independentcatering brands often trade at outlets to fill gaps in the line-up and are often typified by excellent service.

CRAFT & GIFTWARE – Many giftware stores offer routes for DTC businesses to take physical space and outlet purchases are well suited to the gift market. Craft and artisan products are increasingly being seen at fayres and in pop-ups at outlets as a way of making the experience more diverse.

HOMEWARE AND INTERIORS – These stores rely on inspiration, showcasing the latest trends and browsing so the leisurely pace of outlet shopping is really well suited to this category.