Recently, a new outdoor luxury discount shopping center has opened in Belmont Park Village on Long Island, as reported by The Wall Street Journal. Some consumers are willing to bundle up in thick clothing and make late-night trips to hunt for their favorite discounted designer clothing brands.
At Rene Caovilla discount store, discounts of up to 65% are available. In full-price boutiques, shoes from this Italian brand retail for over $2,000.
Mikey Marino stated, “The shoes are so cheap that we couldn’t resist coming to buy them.” He and his wife Pebbles drove two hours from New Haven, Connecticut, with Pebbles successfully finding a pair of green chandelier high heels.
The global luxury industry is currently facing a downturn, with more and more customers balking at the high prices set by retailers. As a result, discount stores are becoming increasingly popular.
There are over 200 discount shopping centers in the US, many of which offer “affordable luxury” brands such as Coach and Marc Jacobs, as well as highly coveted European brands including Gucci, Prada, and Saint Laurent.
Belmont Park Village is the first US shopping center in the Bicester Collection. The portfolio includes discount luxury shopping centers in Europe and China operated by Value Retail, a London-based group.
LVMH-backed private equity firm L Catterton spent £600 million (approximately $775 million) this summer to acquire a 42% stake in Value Retail’s European portfolio, including nine locations in the Bicester Collection.
Woodbury Common Premium Outlets is considered one of the top luxury discount stores in the US and has opened several new stores in 2024, including MCM and Reformation, high-end fashion brands located about an hour’s drive from Manhattan on 150 acres of land. The outlet plans to add 155,000 square feet of retail stores and restaurants, as well as a luxury hotel with 200 rooms.
According to Simon Property Group, the owner, Woodbury’s annual revenue exceeds $1.2 billion.
Historically, luxury retail discount stores have only occupied a small portion of the market. Many brands believe that offering discounts will damage the exclusivity of their products, with ultra-luxury retailers such as Hermès and Chanel preferring to destroy goods rather than reduce prices.
Joëlle Grünberg, head of McKinsey’s North America fashion, luxury, and consumer goods division, pointed out that a common practice among luxury retailers now is to sell excess inventory to family and friends.
Some retailers have also started selling surplus stock to discount retailers in limited quantities, such as TJX, which owns TJ Maxx (or TK Maxx) and Marshall’s. Grünberg noted that more and more consumers are becoming aware that they can afford high-end goods as long as they know where to look.