Fashion outlets challenge retail sector

One new mega outlet store in Høje Taastrup expects to turn over at least one billion kroner a year after it opens in 2014

Gigantic outlet centres are due to open in Denmark over the coming years that could spell danger for many independent retailers, Berlingske newspaper reports.

The outlet centres will house between 50 and 80 stores, each selling designer clothing at large discounts ranging between 30 and 70 percent.

According to Jens Birkeholm, the director of the association of retailers, Dansk Detail, the stores will place even more pressure on a retail sector that is fighting diminishing income and foreign online sales.

“The outlet centres will massively press prices down in nearby stores,” Birkeholm told Berlingske. “If the outlet centres are as nicely decorated as the stores, then the Danish segment of the retail industry will really need to tighten up to cope with the competition.”

The outlet centres are due to open in the towns of Kolding and Billund while Copenhagen Designer Outfits is due to open next year in Høje Taastrup near to the City 2 mall.

“We will have space for about 80 outlet stores so we expect turn over at least a billion kroner,” Copenhagen Designer Outfits director Thomas Lüscher told Berlingske. “We have a major advantage because we are geographically situated next to Denmark’s largest customer base.”

Turnover in the clothing retail sector has suffered following the financial crisis and, according to Euromonitor International, has fallen from 27.3 billion kroner a year in 2007 to around 25.4 billion a year now.