Factory Outlet Centers in Europe: Germany and Italy are Hot Spots for FOC

With more than 20 projects in Italy and about 40 in Germany the two countries register the most factory outlet centre (FOC) projects in Europe. If all projects will be realised the FOC stock in Italy would almost double and in Germany quadruplicate.

Whilst until now FOC could be found rather in fashion affine countries like Great Britain, France or Italy the hype for this type of retail properties has begun also in other European countries like Turkey, Spain or Germany. Especially Germany belongs to the most beloved investment locations for FOC in Europe with 40 projects. With a space density of about 1,50 sqm GLA/1 000 inhabitants the average of Germany lies far below the one in Great Britain with about 9 sqm GLA/ 1 000 inhabitants.

Also in Eastern Europe FOC are more and more in demand, regarding the fact that producers of branded goods as well as retailers have little options in the inner cities. With about 10 projects Poland seems to be the most beloved country in the region when it comes to FOC, with 15 FOC Turkey has the most retail properties of this type.

The concept of FOC which originally comes from the USA gives producers of branded goods the opportunity to resell rest goods which they get from the retailers at a discount. Besides that FOC are becoming more and more interesting especially for those producers, who seek for new sales channels as their classic distribution channels (department stores, multi label stores, etc.) lose market shares to vertical retailers.