Designer outlets are outpacing department stores and brand websites as the preferred place consumers shop for premium fashion, according to Destination Outlet, a new pan-European study commissioned by McArthurGlen Group, Europe’s leading owner, developer and operator of designer outlets.
Drawing on research among more than 5,000 consumers across seven European markets, the report reveals a fundamental shift in shopping behaviour, as experience, value and discovery redefine how and where consumers buy premium fashion.
Experience is the Primary Driver of Spend and Loyalty
Shoppers are increasingly seeking premium brands at more accessible price points, particularly amid ongoing geopolitical tensions and economic uncertainty.
As the Destination Outlet report highlights, however, price alone is no longer the main driver of visitation. Instead, the popularity of designer outlets comes from bringing together great value for money with social, experiential and emotional engagement.
Consumers are increasingly treating outlet visits as full day-out experiences, combining shopping with dining, leisure and social interaction:
- 64% of consumers say designer outlets feel like more than just a shopping destination
- 72% combine outlet visits with food and time with friends or family
- 59% say outlets have evolved into a full leisure experience
Crucially, the report finds that experience directly impacts commercial performance, with customers who are satisfied with their overall shopping experience spending 100% more on average than those who are unsatisfied. The quality of time spent, not just the product, is what really drives value, loyalty and repeat visits.
Susie McCabe, Co-CEO of McArthurGlen Group, said: “The research confirms what we at McArthurGlen have known for some time – that consumers are no longer visiting designer outlets simply to shop. They are choosing them as destinations where retail, hospitality and leisure come together to create a more meaningful experience. The strongest-performing outlets are those that create emotional connections beyond the transaction, encouraging customers to stay longer, engage more deeply with the destination and return more frequently.”
A Critical Platform for Brand Discovery and Growth
Designer outlets are proving to be a powerful customer acquisition platform for premium and luxury brands, providing access to an engaged and aspirational customer segment that brands may not capture otherwise.
- 63% of shoppers buy from new brands at outlets
- 53% of those then go on to purchase full-price items from those brands
These numbers demonstrate that outlet shopping acts as a gateway to full-price retail by enabling brands to build early relationships with new customers. By providing a platform for brands to make that first emotional connection with consumers in an environment with lowered barriers to trial, outlets are proven to convert discovery into long-term loyalty. For brands, they are no longer an end-of-line channel but represent a strategic growth engine.
Millennials and Gen Z Redefine the Future of Retail
The outlet channel is already capturing the attention of the customer of the future, with younger consumers in particular using outlets as a place to explore and connect with new brands.
- 73% of Gen Z and 67% of Millennials have purchased from new brands at an outlet
For these audiences, outlets are not a secondary channel or afterthought – they are primary spaces for discovery, experience and social engagement.
Joan Jove, Co-CEO of McArthurGlen Group, said: “In a retail landscape increasingly overloaded by choice and digital saturation, consumers – particularly younger generations – are looking for experiences that feel more social, inspiring and emotionally engaging. At McArthurGlen, we focus on creating destinations that encourage discovery and give customers the confidence to explore new brands in a more relaxed and enjoyable environment.
Through carefully curated brand mixes, pop-ups and experiences designed to surprise and delight, outlets have become powerful platforms for brand discovery.”
‘Aspirational Value’ Reframes Luxury Consumption
A key finding of the report is the rise of a new value mindset, where discounted fashion is no longer stigmatised but actively sought-after:
- 63% of consumers say finding discounts is now aspirational
- Among high spenders, this jumps to 78% who say finding discounts is aspirational
- 61% feel ‘savvier’ buying discounted designer items
This signals a cultural shift where value has become a status marker rather than a compromise, as luxury-lovers reject over-consumerism and seek to prove their fashion credentials by sourcing pieces in a cost-conscious way. Even high-income consumers are choosing outlets for the thrill of discovery, emotional reward and sense of smart spending, challenging long-held perceptions of luxury preferences.
The Next Phase of Outlet Growth
Looking ahead, the report identifies three key opportunities for the outlet channel, finding that future growth will come from investing in integrated destination experiences across dining, services, events, technology and sustainability.
- More than discounts: time well spent
Experience will become the primary differentiator influencing where consumers place their spend and loyalty. With customers increasingly intentional about where they shop and what they buy, incorporating a broader range of experiences, from events to dining to services, will ensure that outlets continue to come out on top.
- Retail with responsibility
At the same time, consumers recognise the role outlet plays in the responsible retail ecosystem, so circular initiatives that show a strong sense of purpose offer a way to reinforce the channel’s place in the industry’s sustainability journey.
- Powered for the future
Finally, to compete with the expanded choice and digital convenience of e-commerce, smarter technology that personalises and removes friction from the retail journey will become not just a nice-to-have in stores, but an expected part of a shopping trip.
