Designer Outlet Algarve | DESIGNER OUTLET ALGARVE MOVES AHEAD WITH EXPANSION

Designer Outlet Algarve’s premium outlet village expansion begins

Designer Outlet Algarve, the premium outlet village for the south of Portugal and Spain, kicks off construction for its centre extension. By the summer of 2025, up to 25 new stores will open on an additional 4,000 sqm of gross lettable area, creating around 150 jobs.

The plans for the expansion of the Designer Outlet Algarve are finally underway and will enhance the premium shopping experience for visitors. The premium outlet in the Algarve will add around 4,000 sqm of gross lettable area by 2025, adding 25 new and attractive stores and an exciting café. Following the centre’s extension, Designer Outlet Algarve will have a total gross lettable area of 17,000 sqm and an enhanced premium brand portfolio of more than 80 fashion and lifestyle stores.

With over 5 million tourists a year, the Algarve is one of the most popular holiday destinations in Portugal and Europe. Designer Outlet Algarve has established itself as the perfect day-out and shopping destination for locals and tourists alike. 51% of the annual visitors are foreigners, with the UK, Brazil, Spain, France and Ireland being the main countries of origin. 49% are Portuguese, of which almost 20% come from outside the catchment area, from other regions of Portugal, underlining the growing popularity of the resort as a diverse and attractive shopping destination.

Designer Outlet Algarve, managed by ROS Retail Outlet Shopping, one of Europe’s leading outlet operators, has demonstrated steady growth year after year. Good centre management along with a unique brand mix and shopping experience in a welcoming atmosphere enabled the premium outlet centre to increase its turnover by 13.2% and traffic 6.3%, respectively, over the last nine months compared to the corresponding previous period.

“We are very pleased with the path that Designer Outlet Algarve has been following over the last few years. We are very proud to witness its growth and look forward to this expansion, which will turn Designer Outlet Algarve into the leading premium outlet village in Portugal,” says Thomas Reichenauer, Co-Founder and Managing Director at ROS Retail Outlet Shopping.

Reinforcing its pole position in the south of Portugal and Spain, the main architectural features of the space will include a new plaza with a fountain that will incorporate modern and typical elements of the region, which will be an important highlight for events at the centre.

“The centre extension will allow us to enrich the current premium brand mix and fulfill both customer and brand increasing demands. In recent years, Designer Outlet Algarve has seen an intense premiumisation as exemplified by the latest brand arrivals including Karl Lagerfeld, Boss, Invicta, Façonnable, Hackett London, Adolfo Dominguez, GANT and many more,” adds Thomas Reichenauer.

The centre extension will comply with the highest standards for sustainable building management to meet BREEAM requirements. In 2022, Designer Outlet Algarve was recognised with the international BREEAM-In-Use certificate, the world’s leading method of sustainability analysis, with “Very Good” and “Excellent” ratings in terms of asset performance and in building management, correspondingly. For Thomas Reichenauer, “this is very important because it testifies to our commitment to sustainable performance and best business practices. Designer Outlet Algarve is recognised as an organisation that contributes to sustainability and responsible management policy. We want to ensure that our business respects the environment in all dimensions of its activities.”

These actions are in line with other measures taken by the premium outlet destination, such as the installation of solar panels as well as drop boxes for used clothing to promote their circular use within the framework of the #bettershopping campaign launched by the operator ROS Retail Outlet Shopping across its portfolio.

It is estimated that the expansion of Designer Outlet Algarve will result in the creation of approximately 150 new direct and indirect jobs in the region, contributing to the economic growth and sustainable development of the local community.

Opened in November 2017, Designer Outlet Algarve offers more than 70 fashion and lifestyle brands like Hugo Boss, Tommy Hilfiger, Lacoste, Levi’s, Calvin Klein, Bimba y Lola, Guess, as well as Adidas, Puma, Asics, Timberland and many more, 30-70% off, all year round. Designer Outlet Algarve is part of the large Algarve Commercial Complex featuring the MAR Shopping Algarve shopping mall, an outdoor leisure area and anchored by the only IKEA store in the region. The centre extension of Designer Outlet Algarve is an investment by INGKA Centres and Mutschler Outlet Holding.