Third spaces: The changing face of retail outlets

Nicky Lovell, Head of Outlets and Retail Business Development at Global Mutual, embodies the transformation of retail over the past few decades. From her beginnings as a buyer at Selfridges to leading a portfolio of outlet centres across the UK, Lovell has witnessed and influenced the evolution of shopping destinations, adapting to shifting consumer habits and market pressures. Her story, punctuated by bold decisions and innovative thinking, reveals the resilience of outlets and their role in the future of retail.

From Selfridges to Global Mutual: A Career Built on Adaptation

“I started out in retail at 18,” Lovell begins, reflecting on her early career at Selfridges. Joining their internal management scheme, she progressed through various roles to become a buyer in the menswear sector. Later, she moved to Liberty before expanding her remit at Hoopers, a regional department store group. There, she gained valuable experience managing multiple stores and concessions across diverse customer bases.

By the late 1990s, outlets were emerging as a dynamic retail format. Lovell recounts her introduction to the outlet world: “I was chatting to a friend, and he said a friend of his worked very closely with McArthur Glen.” That conversation led to an opportunity to join the company, where Lovell contributed to major openings, including Ashford and Livingston, and played a role in McArthur Glen’s expansion into Europe. “You’d sit in a room with about ten different nationalities,” she recalls, finding value in the diverse perspectives and working styles of international teams.

After a brief stint in full-price retail, Lovell returned to outlets, eventually joining Global Mutual in 2016. Over the past seven years, she has helped grow the company’s portfolio from two outlet centres to seven, leveraging relationships and market expertise to acquire and manage key assets. “We’re entrepreneurial,” she says, noting that Global Mutual’s success stems from its collaborative approach and problem-solving ethos.

The Role of Outlets in Today’s Retail Landscape

Lovell is emphatic about the unique appeal of outlets, which she describes as resilient and adaptive. “They’ve been through recessions, they’ve been through a pandemic, and they still bounce back,” she says. According to Lovell, the sector’s strength lies in its ability to balance value, variety, and experience.

“People still want that element of surprise,” she explains. Outlets offer consumers the thrill of discovering bargains alongside familiar basics, all within an environment that reflects the look and feel of high-street retail. This is a crucial factor in their sustained relevance, as Lovell explains: “Customers don’t want a cheapened version of the high street; they want a great brand they love and understand, or a brand they can’t necessarily afford at full price.”

The format’s evolution has also been driven by changing customer expectations. “What you also want is your restaurants,” Lovell says, emphasising the importance of dining and leisure options in creating a well-rounded experience. For some centres, this has meant incorporating open-air spaces, walking paths, and pet-friendly policies to make the sites more inviting. “It’s about creating spaces that are just a bit more interesting than shopping.”

COVID-19 and the Boom in Outlet Shopping

The pandemic presented an unexpected boost for outlets. Lovell describes the post-lockdown surge as a “boom time” for the sector. “Most of them are open-air centres,” she notes, which gave outlets an edge as consumers sought safe, outdoor spaces to shop and socialise. Younger demographics, in particular, were quick to return, surprising Lovell initially. “They just wanted to see people again, to be with their friends,” she says, highlighting the social dimension of retail that online shopping cannot replicate.

While e-commerce continues to influence consumer behaviour, Lovell argues that the outlets’ tactile and experiential elements remain irreplaceable. “It was nice to actually go and touch and see it and feel it and try it on,” she says, reflecting on why brick-and-mortar shopping still holds appeal.

Building Relationships with Retailers

Lovell’s extensive background in retail has been instrumental in forging relationships with brands, which she identifies as a cornerstone of successful outlet management. “Because of my retail background, there’s an awful lot of people I grew up with who are now in major roles,” she says. These connections, coupled with Global Mutual’s collaborative approach, have allowed her team to introduce brands to centres that align with their target demographics and strategies.

“It’s about getting them to trust,” Lovell says, acknowledging that some brands were initially sceptical about the outlet model. However, the integration of outlets into broader retail strategies has shifted perceptions. “Retailers are very much conscious of their full-price policy and their outlet policy, trying to team them up so one feeds off the other,” she explains.

Community Engagement and the Future of Retail Spaces

Lovell is passionate about outlets’ potential to serve as community hubs, a shift she sees as essential for the future of retail. “If we have the space, why shouldn’t we open it up to other people?” she asks, advocating for initiatives that invite community groups, running clubs, and yoga classes to use outlet facilities. During the cost-of-living crisis, one centre even created warm spaces for people to gather and relax without the expectation of spending money. “We need to have a responsibility and be part of that community,” Lovell says.

This community focus also sets outlets apart from traditional high streets. By offering safe, family-friendly environments, outlets become destinations where shoppers can spend quality time together. “Everybody is so time-pressured these days,” Lovell observes. “To be able to go as a family and feel comfortable is key.”

Challenges on the Horizon

Like much of the retail industry, outlets face significant challenges, from rising wages to supply chain disruptions. “It’s still very much geared around people,” Lovell says, pointing to tightened budgets and the need for value-driven offerings. Her team works closely with retailers to ensure pricing and promotions resonate with customers, balancing affordability with profitability.

The question of business rates also looms large. “We need to sort out the rates situation,” Lovell asserts, calling for a fairer approach to property taxation that doesn’t disproportionately impact physical retail spaces.

Looking Ahead

Despite these hurdles, Lovell remains optimistic about the sector’s prospects. She sees continued opportunities for growth, both within the UK and in Europe, as Global Mutual explores potential acquisitions and partnerships. “We like outlets because we know we can make them work,” she says, confident in the format’s ability to adapt and thrive.

For Lovell, the future of outlets lies in their ability to evolve alongside consumer expectations. Whether by integrating leisure options, fostering community connections, or leveraging technological innovations, outlets must continue to offer more than just a shopping experience. “It’s about creating spaces where people can be themselves,” she says—a vision that reflects both her deep retail expertise and her commitment to shaping the future of the industry.