Kering and Simon® Announce The Completion Of The Sale Of 'The Mall Luxury Outlets'
Rhea-AI Summary
Kering and Simon® (SPG) have completed the sale of 'The Mall Luxury Outlets' entities to Simon. The transaction involves two luxury outlet destinations in Italy - one in Leccio near Florence and another in Sanremo. The deal will generate net proceeds of approximately €350 million for Kering.
The Mall, established in 2001, will continue to feature Kering's brands as part of their strategy to concentrate outlet distribution in select exclusive venues. Simon, as a leading operator of shopping destinations worldwide, will manage the continuous operation of these high-end shopping villages.
Kering, which reported revenue of €19.6 billion in 2023 and employs 49,000 people, manages luxury brands including Gucci, Saint Laurent, Bottega Veneta, and Balenciaga among others.
Positive
- Sale of non-core asset generates €350 million in net proceeds
- Strategic alignment with outlet distribution concentration strategy
- Maintains brand presence in premium outlet locations
Negative
- Divestment of revenue-generating luxury outlet assets
Insights
This strategic acquisition by Simon Property Group marks a significant expansion of its luxury retail footprint in Europe, particularly in the highly coveted Italian market. The two premium outlets - located near Florence and in Sanremo - are positioned in prime tourist destinations that attract high-net-worth international shoppers.
The
The deal's timing is particularly strategic as luxury retail continues to show resilience, with outlet shopping remaining a strong performer in the sector. The continued presence of Kering's prestigious brands (including Gucci, Saint Laurent and Balenciaga) ensures these outlets maintain their high-end positioning and attract luxury consumers.
For Simon shareholders, this acquisition represents a calculated move to enhance the company's premium property portfolio while gaining stronger footing in the European luxury retail market. The transaction should contribute positively to Simon's revenue streams and provide opportunities for operational optimization through Simon's proven management expertise in the premium outlet sector.
This transaction reflects a sophisticated evolution in Kering's distribution strategy, focusing on creating more exclusive and controlled outlet channels for its luxury portfolio. The
The move aligns with luxury sector trends toward more selective distribution networks, allowing better control over brand positioning and customer experience. Kering's strategy to concentrate outlet distribution in exclusive venues demonstrates a balance between maintaining accessibility to off-price customers while protecting brand equity.
The continuation of Kering brands' presence in these outlets under Simon's ownership suggests a carefully structured deal that serves both parties' interests. Simon's expertise in premium retail property management provides confidence in maintaining the high-end positioning these luxury brands require, while Kering can focus on its core competency of luxury brand management.
For Kering, the divestment of this non-core asset will generate net proceeds of approximately
Simon, a world leading operator of shopping, dining and entertainment assets worldwide, is ideally positioned to successfully ensure the continuous operation of The Mall. Kering's brands will maintain a presence in these two very high-end shopping villages, the strategy implemented by Kering aiming at gradually concentrating its outlet distribution to a limited number of exclusive venues.
About Kering
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. We capture these beliefs in our signature: "Empowering Imagination". In 2023, Kering had 49,000 employees and revenue of
About Simon
Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across
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SOURCE Simon
FAQ
How much did Simon (SPG) pay for The Mall Luxury Outlets acquisition from Kering?
What assets are included in Simon's (SPG) acquisition of The Mall Luxury Outlets?
Will Kering brands continue to operate in The Mall Luxury Outlets after Simon's (SPG) acquisition?
When was The Mall Luxury Outlets founded before Simon's (SPG) acquisition?
What is Kering's strategy for outlet distribution following the sale to Simon (SPG)?
