Publish Date: July 02, 2019
ICSC Value Retail News
Panama, a popular destination for Latin American shoppers, with several major malls, will be getting its first outlet center next year.
Megapolis Outlets Panamá is actually the conversion of Multicentro Panamá, which Luna Brillante opened in Panama City in 2003 as the country’s first mall. The site is adjacent to the Majestic Casino and to a Hard Rock hotel.
This opening is the latest addition to the nascent Latin American market for outlet centers, featuring stores that offer merchandise from global brands. The region has only 18 outlet malls fitting that description, 12 of which are in Brazil. That figure contrasts sharply with the 215 outlets in the United States and Canada. The global outlet center count is 437, according to the Chicago-based The Outlet Resource Group, which helps develop and lease outlet centers worldwide and is overseeing the Panamanian project.
“Panama has the perfect combination of strong demographics, with a large percentage of the population concentrated in Panama City and made up of Millennials, and [with] the 2 million visitors per annum forecast to grow dramatically over the next decade,” said Lisa Wagner, principal, The Outlet Resource Group. “The position of Panama as the hub of Central and South America for transportation and commerce makes it the perfect place for the first authentic outlet destination to be executed.”
Latin America is potentially a strong outlet market, considering its $160 billion fashion industry: Spending on clothing and footwear there is projected to exceed $220 billion by 2021 and to grow at a compound annual rate of 7.2 percent over the next five years, according to BMI Research.
The Outlet Resource Group (TORG) is a global alliance of experts focused on the acquisition, management, marketing and leasing of outlet shopping centers in the United States, Latin America and Europe. The team has collectively over 250 years of outlet experience across over 65 outlet centers. TORG offers unique in-house marketing and leasing services through a fully integrated, customer-focused, value-adding team structure. TORG works with owners and developers to strategically reposition underperforming assets, maximize the performance of existing centers, develop new outlet center destinations and provide professional guidance on retail expansion. For more information, visit outletresource.com.