Surplus stock mall planned for Cape

Posted On Tuesday, 02 May 2006 02:00 Published by
Rate this item
(0 votes)
PROPERTY development group Spearhead will open a shopping mall in Cape Town that will offer retailers an opportunity to sell excess stock in a branded environment.

Wendy Hall

Consumer Industries Reporter

PROPERTY development group Spearhead will open a shopping mall in Cape Town that will offer retailers an opportunity to sell excess stock in a branded environment.

The mall, named Sable Square, is the first of its kind in SA and it will be located near Century City. The mall aims to attract consumers from both the high street retail shops and factory stores.

“It presents a distribution opportunity for retailers and distributors and will protect the brand’s integrity, as people will shop in a branded store in a convenient, pleasant shopping environment,” leasing agent for Spearhead, Johanna Hult said.

Tenants who have committed to open stores in the centre include Adidas, Tommy Hilfiger, Rage shoes, Bondi Blue, Polo Sport and Jeans, and Pick ’n Pay.

Hult said the centre was 70% let and was on track to open in September. The concept is well known to retailers in Europe and the US, Hult said.

The stores would display the previous season’s stock, or surplus stock that high street stores were not able to move. They would attract shoppers by offering a discount of at least 30% on merchandise.

“Factory shops are not always in convenient locations, or in pleasant shopping environments.

“Outlet stores give retailers the opportunity to sell slow-moving stock, rather than to make a high margin,” Hult said.

The concept of the outlet store originated in the US in the 1980s. There are more than 300 overseas retailing such brands as Pringle of Scotland, Versace, Nicole Farhi and Burberry.

In the US and Europe it was common for big branded clothing manufacturers such as Adidas to manufacture lines specifically for their outlet stores, Hult said.

International sport and leisure wear brand Tommy Hilfiger used outlet retail stores in the US and UK to sell off surplus stock without jeopardising the exclusivity of its brand.

It opened one outlet store for every seven new mainstream stores.The strategy allowed it to balance new stock sales and the clearance of excess stock.

European group Value Retail had developed seven outlet villages in major European centres selling brands from Billabong to Versace at a discount.

Each site was carefully selected for its location close to a major cosmopolitan market that had an established retail core and cities that re popular tourist destinations.


Publisher: Business Day
Source: Business Day

Most Popular

It’s cheaper to buy than to rent a home in 2021

Feb 08, 2021
Carl_Coetzee_BetterBond_CEO
If the past year has taught us anything, it is how important our homes have become to us.

Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate

Feb 15, 2021
Thavhani_City_Locality_Layout
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…

SA REIT Association - Chairman's message and 2021 sector outlook

Feb 02, 2021
Estienne de Klerk_Chairman of SAREIT
Real estate has long been a rewarding sector of the financial markets. Like all sectors,…

Brand new residential development in La Lucia 60% sold through Pam Golding Properties

Feb 15, 2021
Kent_Exterior
Such is the consistent high demand for centrally located, well-priced residential…

Optimistic budget masks a number of key risks

Feb 25, 2021
Maarten_Ackerman_Chief_Economist_and_Advisory_Citadel
Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated…

Please publish modules in offcanvas position.