What: Luxury outlet operator Value Retail reports continued growth and expansion, leveraging unique revenue model and enhanced shopping experiences across 11 global locations.

Why it is important: This development highlights the growing importance of outlet channels in luxury retail strategy, particularly during periods of economic uncertainty.

Value Retail, the operator of Bicester Village and similar luxury outlet destinations, continues to demonstrate strong performance with double-digit growth in net sales for 2024 and similar projections for 2025. The company's unique business model takes 15-18% of sales plus service fees rather than charging fixed rents, with expectations of 50 million visitors across its locations in 2025. Founded by Scott Malkin and backed by L Catterton, the group has expanded to 11 sites near wealthy cities globally. Their success reflects broader challenges in the luxury sector, where traditional retail channels struggle amid economic uncertainties in China and cost-of-living pressures in the West. Value Retail's approach emphasises premium experiences, including upscale dining, social media-worthy storefronts, and VIP services like hands-free shopping, though growth potential remains limited by high operational costs and regulatory constraints in certain markets.

IADS Notes: Value Retail's success reflects significant shifts in luxury retail dynamics. According to Bain-Altagamma's February 2025 report, outlet channels outperformed full-price retail amid the first contraction in personal luxury goods in 15 years, demonstrating their growing strategic importance. Bain & Company's November 2024 analysis revealed how changing consumer behaviour has led to a shrinking luxury customer base, with 50 million fewer consumers over two years, making outlet strategies increasingly crucial. Savills' April 2024 report highlighted how luxury brands are focusing on "localisation" and resort destinations to get closer to customers, aligning with Value Retail's village concept approach. Fashion Network's September 2024 coverage of Hammerson's sale of its Value Retail stake to L Catterton for £600 million demonstrated the significant value and strategic importance of premium outlet operations. Value Retail's double-digit growth in 2024 and projected 50 million visitors in 2025 showcase how well-executed outlet strategies can thrive even in challenging luxury market conditions.

In the UK, what Bicester village outlet says about luxury