Outlet malls are the new global tourism destinations of Europe

Australian tourists Erica Kim and Michael Cai walk out of Bicester Village outlet mall near London loaded down with purchases including Jimmy Choo boots, Bally shoes and a dress. They figure they’ve saved about 1,000 pounds ($1,500) compared with shopping at home. Outlet centers across Europe are attracting visitors from as far away as China and Brazil with discounts of 60 percent or more on year-old apparel by luxury labels like Gucci and Prada, as well as on jewelry and other goods. That’s lifting revenue at companies backed by investors such as Carlyle Group LP, Hammerson Plc and Henderson Global Investors, and fueling the industry’s expansion even as conventional retailers struggle. “When times are tough, people still like to shop, they still like brands,” said Robert Hodges, head of European asset management at Carlyle, which bought London-based outlet operator Freeport Group in 2007. “We’ve seen consistently better performances in terms of footfall and overall