ROS Retail Outlet Shopping launches new ‘BOLD’ strategy to drive sustainable growth

Vienna, 13th March 2023

• Despite uncertainty and economic turbulence, ROS Retail Outlet Shopping heads into 2023 with optimism after closing 2022 with an average sales performance of +18% compared to the pre-pandemic year 2019 across the portfolio.

• The outlet operator has unveiled its new ‘BOLD’ strategy to accelerate long-term growth in all its 12 premium outlet shopping destinations based on 5 core pillars: Refine Leasing, Boost Marketing, Reframe Retail, Drive Value and Organise for Growth.

Outlet operator ROS Retail Outlet Shopping, present in 9 European countries, is deploying a 5-pronged ‘BOLD’ strategy aimed at driving growth and balancing the realities of short-term challenges with long-term strategic priorities.

“It is our vision to expand our market position as one of Europe’s leading outlet operators by creating unique and premium outlet shopping experiences, excellent retail standards and an innovative marketing approach with the boldness to break new grounds and reframe the outlet shopping concept in the European market,” says Thomas Reichenauer, Co-Founder & Managing Director at ROS Retail Outlet Shopping.

At the core of the Austrian company's proposition to deliver its vision is a bold and open-minded approach to new paths in order to be unique and seize new opportunities in the face of new trends, such as sustainability, digitalisation and mixed-use, on which the company has already laid solid foundations.

“Our ‘BOLD’ strategy is a clear customer-centric statement – helping to enhance the consumer journey, improve our offering, increase our relevance, and drive growth across all locations,” affirms Mr. Reichenauer. “Our aim is to sustainably accelerate growth, and I am confident that we have the right team and strategy to successfully execute and lead our outlet shopping destinations into the future,” concludes Mr. Reichenauer.

Thomas Reichenauer and Gerhard Graf, Founders and Managing Directors, ROS Retail Outlet Shopping

2022: A volatile year turned into an opportunity for the European outlet market

Despite being 2022 a thud in the retail sector with an increased economic volatility and the effects of inflation weighing heavy on households and consumers, the European outlet market demonstrated a USP. The best value for money with a unique brand-mix and the welcoming atmosphere of outlet centres make them the perfect day-out destination.

For ROS Retail Outlet Shopping, 2022 was a year characterized by the acquisition of Designer Outlet Luxembourg, record breaking sales as well as the redevelopment of the parking area and the upgrade of the façade and a new green lifestyle area at Designer Outlet Sosnowiec.

ROS Retail Outlet Shopping closed 2022 with an average +18% sales performance compared to the pre-pandemic year 2019 across the portfolio and traffic recovery averaging 3%, which paves the way for a successful and optimistic year. This is reflected in the latest results of the ecostra annual report Outlet Centre Performance Report Europe (OCPRE) 2022. Designer Outlet Warszawa, one of the three Polish centres managed by the operator, ranked as Europe’s third best performing outlet from the tenant's point of view. The unique mix has led the outlet to accumulate several achievements over the years and become Poland’s flagship outlet destination today.

Designer Outlet Warszawa, Europe’s third best performing outlet according to ecostra annual report Outlet Centre Performance Report Europe (OCPRE) 2022

2023: The year to be ‘BOLD’

With the launch of the ‘BOLD’ strategy at the beginning of 2023, ROS Retail Outlet Shopping aims to drive sustainable growth and reframe the outlet shopping concept in Europe. In this context, the operator is placing the customer first, driving forward its centre extensions and taking a holistic approach to adapt each centre to the fast-shifting market demands and individual stage of the asset lifecycle. The ‘BOLD’ strategy is based on five important pillars: Refine Leasing, Boost Marketing, Reframe Retail, Drive Value and Organise for Growth through Digitalisation, Sustainability and Empowering People and Teams.

Refine Leasing

With ‘trading-up’ at the heart of the Leasing strategy, ROS Retail Outlet Shopping refines its approach around brand mix with a focus on premium and upcoming local brands in line with the specific characteristics of each centre to drive rental income. Key focus points in 2023 for the operator include optimising the category mix with the introduction of new categories, enhanced F&B as well as retail innovations for the planned centre extensions.

Boost Marketing

Driving traffic and tourism and positioning the centres as regional shopping destinations are the key objectives of ROS Retail Outlet Shopping's marketing strategy here. The operator aims to boost marketing penetration in the catchment areas through an optimised media mix, improved customer journey from an increased on-site experiential factor with enhanced sustainability initiatives, leveraging tourism potential and a strong loyality program.

“The future of outlet destination marketing”, according to Marketing Director Guido Assmann, ROS Retail Outlet Shopping, “relies on combining digital marketing, social media, big data, loyalty and the creation of an emotional ‘phygital’ shopping experience with unique features to attract consumers”.

Reframe Retail

ROS Retail Outlet Shopping will also unleash the full potential of retail across the portfolio to drive retail excellence and sales by improving conversion, ATV and further retail KPIs as well as providing retail and HR support as well as offering an upgraded ROS Retail Academy programme. Fostering a better and closer brand partner relationship, improving customer services and acting as a ‘green ambassador’ will also prove to be vital in reframing retail for the Austrian operator.

Drive Value

The fourth pillar of the ‘BOLD’ strategy is based on continuing to drive asset value through integrated centre management for brand partners, investors, customers and communities. The integrated center management is ROS Retail Outlet Shopping core business and provides excellent services to all stakeholders. Based on the local centre characteristics, the stage in the property’s lifecycle, ROS develops for each centre an individual Lifecycle Asset Value Creation strategy based on planning opportunities for modifications and centre extensions. ROS is currently in various stages of development of its seven centre extensions in Poland, Germany, Croatia, Portugal and Hungary.

Organise for Growth

ROS Retail Outlet Shopping will drive growth in a sustainable way in all locations, while further balancing its presence at European level. Following the launch of the #bettershopping campaign in 2022, the company will intensify its CSR and ESG activities in order to deliver both clear and measurable impact and emotional engagement with consumers and communities. ‘Organising for growth’ also means for the Austrian operator to use digitalisation as a means to further increase efficiency and flexibility in the company's operational framework.

“As new trends take shape, the entire European Outlet Market today faces the challenge of becoming a catalyst that brings together, landlords and brand partners to create vibrant places that serve today’s customer and the community best. Outlet operators have an opportunity in 2023 to reinvent themselves and forge new ways of engagement when it comes to sustainability and digitalisation as well as regulatory and other disclosures to working with policymakers, industry bodies and other stakeholders to jointly address pain points,” concludes Mr. Reichenauer.

Designer Outlet Gdańsk managed by ROS Retail Outlet Shopping, Centre Extension 2,000 sqm, opening Spring 2024