Designer retail outlets firm McArthurGlen has bucked the dour current British retail trend by today reporting strong sales figures for June.
The owner of seven designer outlets in the UK and 20 worldwide claims that the mixture of holiday shopping, summer weddings and horse racing helped to push domestic like-for-like trading up four per cent year-on-year last month.
Compared to nationwide high street sales in June which according to the British Retail Consortium rose just 1.5 per cent, McArthurGlen saw total trading jump at its centres by seven per cent compared to the same period last year.
Sales increased most for designer fashion collections, growing 21 per cent during the month, with Mulberry, LK Bennet and Kurt Geiger some of the most popular brands.
Colin Wilding, UK Country Manager at McArthurGlen, said: “When shoppers have less disposable income and reduced spending power, our proposition comes into its’ own, fuelling the demand for high-quality products at lower prices.
“These occasions simulate purchasing reasons for consumers, and increasingly put our centres on the map for tourists – particularly our York, Ashford and Cheshire Oaks outlets.”
Luxury brands such as Mulberry and Burberry have recently proved their continuing popularity through strong trading reports, but in general consumers have less to spend right now due to economic pressures.
By offering luxury goods at a discount, McArthurGlen can tap into demand by offering value and quality, and the increasing trend for consumers to shop in one location also suits the outlet model.
Charlotte Woods, Retail Analyst at Verdict Research, commented: “This positive trend is not surprising.
“Despite the prevalence of austerity measures, special occasions such as weddings are still a part of consumers’ lives encouraging them to buy new outfits, and outlet destinations provide an opportunity for shoppers to make these purchases at a discount.
The success of outlet villages can be attributed to their extensive range of entertainment and services, such as restaurants, which act to enhance consumers’ day out and increase the time they spend shopping.”