When Spearhead Property Group's latest R250 million retail venture, Sable Square, opens its doors near Century City, Cape Town in September 2006, it will mark the start of a new era in shopping for South Africa.

As the first outlet retail shopping village, Sable Square will allow consumers access to recent fashion collections at a minimum of 30 percent off regular retail prices and will allow retailers and manufacturers of designer brands to generate millions in extra revenue from sales of excess stock - without compromising their brand image.

Johanna Hult of Spearhead Property Group said that the outlet retail shopping concept was created in the US in the eighties to address an age-old challenge in retail, selling off excess stock while maintaining brand integrity. "From the onset, outlet centres hit the mark with consumers and retailers and have been hugely successful. Today the outlet retail industry in the US is worth an estimated 15 billion dollars a year. Europe and the UK followed in the early nineties and there are currently in excess of 500 outlet retail centres abroad."

She said that the key difference between outlet retail and factory shops is the treatment of the merchandise. "At outlet retail centres the brand is protected through strict guidelines. Sable Square, for example, will be managed by an experienced merchandiser and all tenants will be subject to merchandising and signage guidelines from Spearhead which will ensure a quality brand image is created for all tenants. In other words, the merchandise in these stores is as beautifully presented as stores in mainstream malls."

Hult said that outlet retail centres will find a niche between shopping malls and factory stores. "Branded merchandise is sold at a guaranteed discount off 'high street' prices. The stock on sale is from a previous season and this ensures that the outlets don't compete with mainstream stores but rather complement sales by moving stock which would otherwise not have been sold. The environment at outlet retails always a very pleasant one, with free parking, good restaurants and cafes and tight security."

The business proposition for brands such as Adidas, Tommy Hilfilger, Reebok, Skechers and Fila is clearly an attractive one, they have all signed up for stores at Sable Square. "Some of the world's highest end brands, Pringle of Scotland, Versace, La Coste and Burberry have stores in retail outlets. These companies are very protective about their brands so it is a testament to the success of retail outlets that they are represented there," said Hult.

Alf Hartzenberg, Managing Director of the JK Group (Tommy Hilfiger and JK Kids), which has signed for a store at Sable Square said, "We are delighted that the outlet retail option has come to South Africa. It is utilised internationally by our company to sell off excess stock without jeopardising the exclusivity of the brand. Our business strategy internationally is to open one outlet store for every seven new mainstream stores, this gives us a perfect balance between new stock sales and excess clearance and is complementary to the company's bottom line."

Frequented by people from all walks of life, including notably, a large contingent of the very wealthy, outlet retail centres are proof that the bargain has a very broad appeal. Hult said that one outlet retail centre in the US, Sawgrass Mills, is the second biggest tourist attraction in Florida after Disney World. The centres are typically designed with an open-air village feel. Consumers are advised to 'bring a suitcase' when they visit the centres to help them carry all their purchases.

Hult said that Sable Square will contribute meaningfully to the Century City shopping district which is already home to the highly successful Canal Walk shopping centre. "Sable Square will add a 'labels for less' element to the area which will attract more consumers to this already buoyant retail hub."

"We are sure this concept, which has proved successful for 20 years abroad, will be embraced by South Africans because shoppers the world over have one thing in common - they are all looking for bargain," concludes Hult.