McArthurGlen Group Company Profile

Background

McArthurGlen Group is Europe's leading owner, developer, and manager of designer outlets, offering luxury, designer, and premium brands with year-round savings of up to 70%. Founded in 1993 by the Kaempfer Partners, the company pioneered designer outlet retailing in Europe with the opening of Cheshire Oaks in the UK in 1995. Today, McArthurGlen operates 24 centres across eight countries, including the UK, France, Italy, Germany, Austria, the Netherlands, Spain, and Canada, encompassing over 665,000 square meters of retail space and attracting approximately 90 million visitors annually.

Key Strategic Focus

McArthurGlen's strategic focus centers on creating exceptional shopping experiences by developing and managing designer outlets that blend retail with contemporary dining and entertainment. The company targets major cities and tourist destinations, aiming to provide accessible luxury shopping experiences to both local communities and international visitors. By continuously expanding its portfolio and enhancing its brand mix, McArthurGlen seeks to maintain its market leadership and meet evolving consumer demands.

Financials and Funding

In 2024, McArthurGlen reported record-breaking sales, with a 7% year-to-date increase in turnover, building upon the previous year's double-digit growth. This growth was driven by a 4% rise in footfall and a 3% increase in average spend per visitor. The company anticipates delivering nearly €6 billion in total sales for its brand partners by the end of the year.

Pipeline Development

McArthurGlen has an active development pipeline, including:

Designer Outlet West Midlands (UK): Phases II and III are planned, adding 98,000 square feet and 50 new units, with the first stage scheduled to open in 2026.

Vancouver Designer Outlet (Canada): Phase III will introduce 27 new luxury and premium stores over 65,000 square feet, set to open in spring 2026.

Designer Outlet Málaga (Spain): Phase II plans a 12,000 square meter expansion, adding 70 new stores.

Designer Outlet Castel Romano (Italy): Phase IV includes a 6,000 square meter expansion, offering up to 35 new stores.

Designer Outlet Roosendaal (Netherlands): Phase III has received zoning approval for a potential expansion of up to 6,500 square meters.

Technological Platform and Innovation

McArthurGlen emphasizes sustainable development and innovative design in its centres. For instance, the La Reggia Designer Outlet near Naples features one of the largest solar panel installations in any European retail scheme. The company also integrates contemporary architectural styles and art installations to enhance the shopping experience, as seen in the Paris-Giverny outlet, which includes permanent art pieces and a dedicated gallery space.

Leadership Team

J.W. 'Joey' Kaempfer, Jr. – Founder and Chairman. Founded McArthurGlen in 1993; previously founded The Kaempfer Company in 1977.

Susie McCabe – Co-CEO. Joined in 2018 as Deputy CEO; became Co-CEO in 2020. Formerly Senior Vice President of Global Retail at Under Armour Inc.

Joan Jove – Co-CEO. Previously Managing Director, Southern Europe and Canada; became Co-CEO in 2020.

Simon Mottram – Deputy Chairman. Joined in 2013; formerly Senior Partner at Nabarro LLP.

Mark Epstein – Chief Financial Officer. Joined in 2010; co-founder and former CFO of Tailwind Capital Partners.

Michael Natas – Managing Director of Development. Appointed in June 2023; has been with McArthurGlen for 18 years, overseeing key projects including Designer Outlet Paris-Giverny.

Leadership Changes

In June 2023, Michael Natas was promoted to Managing Director of Development, succeeding Gary Bond, who transitioned to Executive Development Advisor after many years of leadership in the development team.

Competitor Profile

Market Insights and Dynamics

The designer outlet market in Europe is robust, with increasing consumer demand for discounted luxury goods. The sector has shown resilience, with McArthurGlen reporting consistent growth despite economic challenges.

Competitor Analysis

Key competitors include:

Value Retail: Operates luxury outlet villages under the "Bicester Village" brand, with locations across Europe and China.

Neinver: Manages "The Style Outlets" in Europe, focusing on premium brands.

Simon Property Group: A global leader in retail real estate, co-owner of McArthurGlen since 2013.

These competitors focus on providing luxury and premium brands at discounted prices, similar to McArthurGlen's model.

Strategic Collaborations and Partnerships

In 2013, McArthurGlen entered a joint venture with Simon Property Group Co., enhancing its market position and development capabilities. The company also collaborates with local authorities and organizations, such as the Chamber of Commerce and Industry and the Chamber of Crafts and Artisanship in France, to support local talent and integrate regional culture into its centres.

Operational Insights

McArthurGlen's strategic considerations include:

Market Position: Maintaining leadership in the European designer outlet sector through continuous expansion and brand diversification.

Competitive Advantages: Offering a blend of luxury brands, attractive pricing, and enhanced shopping experiences through architectural design and amenities.

Sustainability Initiatives: Implementing environmental management programs, reducing water and energy consumption, and utilizing renewable energy sources.