Destination shopping is a concept introduced by McArthurGlen Group in 1993. Before the pandemic, visitor numbers from the Middle East soared to the point that they began to explore the possibility of tailoring experiences for GCC guests. Gulio Leporatti, Head of Tourism-Marketing and Sales, McArthurGlen Group, shares more details with TRAVTALK.
Shehara Rizly
Please explain your partnership with Buzz marketing.
The partnership with Buzz Travel Marketing is helping us in establishing relationships with the best tour operators and travel agent networks in the Middle Eastern markets, and we are confident that we will be able to grow this network as well as our ability to follow up with them and create tailored packages for them. We are optimistic that Buzz Travel Marketing’s local presence will help us increase our visibility among Middle Eastern customers and better meet their needs.
How do you plan to work with agents, especially given their key role in this market?
I believe we can work in two ways. One is to raise agents’ awareness of what we have to offer, allowing them to present our unique service proposition and understand how our shopping centres can fit into their itineraries, both practically and as an attraction. By better understanding their needs and customer types, we can also develop tailored packages for them that will include additional premium services only available to their customers.
Which areas are more popular amongst GCC travellers?
We measured the impact of the Middle Eastern market and identified five centres that are particularly interesting for our international and ME markets, which are the three Italian centres of Serravalle near Milan, Noventa di Piave near Venice, Castel Romano near Rome, Parndorf in Vienna, and Roermond in the south of the Netherlands. I must also mention Malaga, which just opened in 2020 and is proving to be popular and there is a high demand from ME travellers. Some centres are stronger than others. The Italian centres are stronger for Saudi nationals. Roermond is especially strong with Kuwait, and Qatar visitors have a strong relationship with Malaga, so we are ready to welcome them again.
Is there a difference in shoppers from before to after the pandemic?
We have more mission-oriented shoppers; people want to come shopping, they spend more time than in the past, and they are more focussed on shopping than they were previously. As soon as restrictions were progressively lifted, we experienced a tremendous resurgence.
Can you share pre-pandemic data and your future expectations?
We welcomed 90 million visitors in 2019, generating over €5 billion turnover, making 2019 our record year owing to strong tourist growth proportionally. Tourism is a huge driver, and there is a gap to close before we can return to 2019 levels, possibly in 2022 or 2023, as all markets reopen progressively. I see strong demand for travel and people want to travel.
Please elaborate on McArthurGlen as a shopping destination.
McArthurGlen is a European pioneer in designer outlet retailing. The company presently operates 26 designer stores in 10 countries, including Austria, Belgium, Canada, France, Germany, Greece, Italy, the Netherlands, Spain, and the UK. It caters to approximately 90 million fashion-loving customers with 695,000 sq. m., of retail space, generating total portfolio revenues of over €4.5 billion per year.
What are your expansion plans?
We continue to expand our existing centres. Just a few weeks ago we opened a new phase of Lareja near Naples, new facilities in Serravalle, and we completed the expansion of Cheshire Oaks.
What is the best time to visit the centres?
Because we are open all year, it is always a good time to visit. In many countries, we are open seven days a week, 364 days a year, depending on the country’s regulations. There is a calendar featuring promotions, such as a winter sale in January or a summer sale in July/August, both of which are quite popular with European customers.