European Outlet Industry Continues to Grow as Brand Turnover Reaches €23.6 Billion in 2025

Retail’s outlet sector is continuing to grow as brand turnover reaches €23.6 billion in 2025. Record sales, major outlet acquisition activity and a new retailer at the top of the vitality charts are just a few features of the latest European Outlet Industry Report (EOIR). 

The 2026 EOIR, produced by respected sector analyst Ken Gunn, is the leading and most definitive assessment of the 206 outlet centres (providing some 4.1m sqm of gross lettable area) and offers insights into both outlet and retailer brand activity.  Gunn’s report calculates the total asset value grew to €28.3 bn with rental income (excluding service charges) across the six tiers of outlets within the sector at €2.4 bn for 2025. 

Palmanova Village, IT. Acquired along with Franciacorta Village and Valdichiana Village for a reported price of €410 million in 2025 by Groupe Frey, in partnership with Cale Street Partners.

“The outlet sector’s resilience, dynamism and growth makes it increasingly popular with investors. Almost 75% of market value is held by just 13 major groups including APG, Simons Property Group, L Catterton and Nuveen who appreciate the sector’s ‘defensive’ qualities,” he says. “In 2025 there were nine major outlet industry transactions totalling c€2.9 billion and involving fifteen assets. New investors include Aware Super, TPG Europe and Groupe Frey but established players including Simon Property Group, Patron Capital and VIA Outlets also increased their holdings.”  

Gunn’s 2026 EOIR is the only outlet sector report that reviews the locations of every outlet brand in Europe, combining these with site performance factors to create vitality rankings for both outlet centres and occupiers. Gunn has also added new market indices including a highly-informative brand ‘churn’ rate for outlet centres.  

“With this you can relate changes in brand mass and brand quality to brand churn for outlets,” he says. “This captures asset management activity but it can also indicate those schemes that might be in long-term decline.”

Development and acquisition continues to narrow the gap between leading operators and challengers.  Retail Outlet Shopping became Europe’s second largest operator of outlet centres by floorspace (behind McArthurGlen) and fifth by brand turnover at the start of this year (2026).

Critically Gunn says the sector still offers great investment value potential.  

“There is scope to double turnover at weaker outlet assets and potential to elevate the current value of European assets by €9.5 billion (+34%),” he says. “Buying low and fixing up (remodelling, remerchandising and remarketing) is central to asset management strategy.  And about 35% of the market isn’t owned by the big players and is effectively up for grabs.” 

The EOIR finds that Europe’s top outlets were largely unchanged in 2025.  Bicester Village (UK) continues at the top of the European ranking with Serravalle DO (Italy), Roermond DO (Netherlands), La Roca Village (Spain) and Noventa di Piave DO (Italy) completing the top five.  There were noticeable improvements at Scalo Milano (Italy), The Village (France), Las Rozas Village (Spain) and Franciacorta Village (Italy) in the ranking of all 206 centres. 

Gunn’s highly-influential occupier vitality ranking has a new leader.  Guess has replaced Levi’s as Europe’s leading outlet brand in 2025. Puma also jumped ahead of long-standing rivals Adidas into third spot while Tommy Hilfiger is 5th. Meanwhile Jack & Jones,  Crocs and Only were the most active brands, while there have been notable debuts for Miu Miu and Kapten & Son. The fastest-growing brands in Europe over three years are Jack & Jones, Rituals, Skechers, Under Armour and Only.  Additionally, Bestseller Group has been energetic making it one to watch.

Map Visualization of European Outlet Centre Developments for 2026-28: Expanding Footprint of 348,170 sqm with New Sites, Extensions, and Recent Completions.

Pointing to the general outlook Gunn says there is still room for up to 40 more outlet centres and 1 million square meters of floor space beyond the 16 new sites and 24 extensions due to open/complete by 2028 across Europe. 

“After thirty years of expansion, there are relatively few markets left untapped and capable of sustaining McArthurGlen or The Bicester Collection style large designer village concepts,” he says.  “While these will continue to dominate performance, challenger operators have demonstrated an ability to work successfully through innovation in smaller markets and are likely become the engines of outlet sector growth in the years ahead."

“This past year has seen much more brand expansion in Poland and there is an opportunity for assets to push performance towards Tier 2 levels,” he says. “In Russia there is an enormous opportunity if there is ever a peace dividend.  For the moment the outlet sector there has successfully transitioned from company-run to distributor stores but is beginning to shows signs of being constrained by cautious consumers and the availability of imported stock from Asia.”   

Ken says the sector is not without it’s challenges. He points to Germany and Italy in particular where he believes that either the wrong type of space (eg poor quality shopping mall conversions and under resourced city outlets) or just too much space (in relation to the brand pool) will create ‘uphill scenarios’ in those markets.  

And he warns owners and asset managers to keep an eye on digital retailing and digital brands - particularly luxury and premium positioned brands - pointing to their strong representation in EOIR's analysis of digital outlet services.

“Zoomers (Gen Z) are turning back to quality in-person shopping experiences,” Gunn says.  “For them physical is a great thing indicating that the world is moving towards outlets. But it won’t move as decisively as it might if the sector doesn’t adapt and encourage it.  With research showing that 21% of the luxury goods are now being sold on-line outlets need to ‘swim with the tide’ and ensure they are working with brands on digital initiatives which keep them relevant. Many in outlet say you can’t buy luxury on-line but that’s what’s happening and demand from brands is only going to rise.  Is your outlet centre pursuing a digital strategy and if not why not?”

To obtain copies of the report please contact Ken Gunn or visit: https://kengunn.co.uk/#outlet-industry-insight

ENDS

European Outlet Industry Continues to Grow as Brand Turnover Reaches €23.6 Billion in 2025

For further information or to interview Ken Gunn please contact:  Sean Kelly at PR4Property seancameronkelly@gmail.com / 07770 882905 or visit www.kengunn.co.uk 

NOTE TO EDITORS:  Ken Gunn has worked on nearly and 300 outlet centre projects in 36 countries providing feasibility assessments, asset strategy mapping, pre-acquisition studies, development consultancy, brand location strategy and support for leasing.