Designer Outlet Croatia is a new outlet shopping experience, which is located alongside a popular IKEA store. Strategically positioned southeast of Zagreb, the outlet centre opened in June 2018 and boasts 15,000 m² of discounted luxury clothing brands.
The IKEA store in Zagreb opened in August 2014 and attracts 2.0 m visitors annually. It boasts 38,000-m² rental space, making this one of the biggest IKEA-owned sites in Europe and in the world.
The attractive outlet centre, comprising 74 stores, and the connected marketplace were introduced to create a one-stop shopping destination, with a big emphasis on drawing new audiences and driving traffic to the adjacent IKEA store.
Well before the opening of the outlet centre, the management teams of both sites looked for a technology that would allow them to consistently measure and understand ongoing traffic trends and correlation between both properties. One of the key goals was to prove that such a hybrid retail development is capable of delivering ROI and succeeding as a complimentary traffic driver.
Additionally, as Designer Outlet Croatia sets its rents according to footfall in stores, it has been vital to gather 100% accurate traffic statistics to share the numbers with existing and future tenants. Such data enables rent setting and negotiations possible and helps with ongoing tenant planning and centre management. Designer Outlet Croatia is only starting to unveil the wealth of metrics available.
Visitors’ behaviour will be tracked over a longer period of time, which will allow to gather data and recognise patterns for predictive analytics and field like marketing strategy and seasonal event planning. It is also expected that reliable, long-term traffic data will enable leasing strategy and rental arrangements across the site.
In May 2018, the management team appointed ShopperTrak, part of Sensormatic Solutions, as their technological partner and data provider and commissioned them to provide traffic counting and analytics capability for the development. The installed solution allowed IngKa Centres to closely monitor the traffic impact in its store and the retail attractions next door. The preliminary results already proved strong visitors correlation and proved that the construction of Designer Outlet Croatia next to IKEA store has been a worthwhile investment.
One of the key benefits was also to understand the most attractive locations in the premium outlet village, namely which brands generate the most traffic and help to increase dwell time.