The Omnichannel Revolution: How Outlet Centers Can Drive Growth Through Digital Transformation

The outlet retail landscape is experiencing a dramatic renaissance. After weathering the storm of COVID-19 and adapting to new consumer behaviors, outlet centers are emerging stronger and more resilient than ever. Retail executives in a recent survey expect the industry to grow by mid–single digits on average in 2025. They cited shoring up loyalty programs, strengthening digital commerce, and enhancing the omnichannel experience as top growth opportunities.

But here’s the critical insight that’s reshaping the industry: The market size of the Outlet Stores in the US industry in United States has been declining at a CAGR of 4.3 % between 2019 and 2024. Over the next five years, the Outlet Stores in the US industry in United States is expected to grow. This reversal signals a pivotal moment where outlet centers that embrace digital transformation will thrive, while those clinging to traditional models risk obsolescence.

The new consumer reality is unforgiving:

Today’s shoppers expect value without compromising on experience or convenience. They want seamless integration between online discovery and offline fulfillment, personalized promotions based on their shopping history, and the ability to engage with brands across multiple touchpoints. 73% of retail shoppers are omnichannel shoppers who interact with 6 touchpoints before making a purchase.

Our thesis is bold but backed by data:

omnichannel isn’t just a “nice-to-have” enhancement for outlet centers, it’s the growth engine that will determine which players dominate the next decade of retail.

What Omnichannel Really Means for an Outlet Center

When we talk about omnichannel for outlet centers, we’re not simply referring to having both a website and physical stores. True omnichannel for outlets means creating a unified ecosystem where every customer interaction, whether through mobile apps, social media, in-store experiences, or e-commerce platforms, feels seamless and interconnected.

For outlet centers, omnichannel means:

• Real-time inventory visibility across all tenant stores and online platforms
• Unified customer profiles that track preferences, purchase history, and engagement patterns
• Integrated checkout systems that allow customers to start shopping online and complete purchases in-store (or vice versa)
• Coordinated logistics that enable ship-from-store, click-and-collect, and flexible return options
• Synchronized marketing campaigns that leverage customer data across all touchpoints

The distinction between omnichannel and multichannel is crucial here. While multichannel means operating on multiple platforms independently, omnichannel creates synergy between channels. Companies with strong omnichannel engagement strategies retain an average of 89% of their customers, while those with weaker strategies only retain about 33% of their customers.

Consider this example: A customer browses outlet deals on their mobile app during their commute, adds items to their wishlist, receives a personalized notification about a limited-time promotion when they’re near the outlet center, picks up their pre-ordered items via click-and-collect, and discovers complementary products in-store, all while earning loyalty points that can be redeemed across any channel. This seamless experience exemplifies omnichannel excellence.

Five Tangible Benefits of Omnichannel for Outlet Centers

1. Increased Reach & Revenue: Breaking Geographic Boundaries

Traditional outlet centers are constrained by their physical location and the willingness of customers to travel for deals. Omnichannel strategies shatter these limitations by extending the outlet’s reach far beyond its parking lot.

In 2023, global retail e-commerce sales reached an estimated 5.8 trillion U.S. dollars. Projections indicate a 39 percent growth in this figure over the coming years, with expectations to surpass eight trillion dollars by 2027. For outlet centers, this represents an unprecedented opportunity to tap into online demand while maintaining their core value proposition.

The data tells a compelling story: Omnichannel customer engagement increases average sales revenue by 9%, and Companies with omnichannel customer engagement increase sales revenue growth by an average 179% more than companies that do not implement similar strategies. In the European context, Wishibam’s research shows that omnichannel customers spend 7.1 times more than single-channel customers, with significant growth projected in the digital revenue for the European outlet market from €13 million in 2023 to €28 million by 2028.

Real-world case studies demonstrate this impact. When outlet centers implement robust e-commerce platforms integrated with their physical operations, they typically see 30-40% of online orders coming from customers outside their traditional catchment area. This digital extension allows outlets to monetize their brand relationships and inventory during off-peak periods, creating new revenue streams without additional physical infrastructure.

Footfall Activation via Click & Collect: The Reverse Showrooming Effect

The click-and-collect phenomenon has become a game-changer for driving footfall to physical outlets. The size of the U.S. click and collect market was expected to surpass 154 billion dollars by 2025, representing a massive opportunity for outlet centers to leverage digital channels for physical store traffic.

The numbers are striking: Shoppers are 19.8% more likely to purchase from stores that offer omnichannel pick-up services (such as curbside pick-up). More importantly, Google’s internal data shows that Omnichannel strategies drive an 80% higher store visits. These customers are reported to spend 4% more when they make a visit to a physical location than single-channel customers.

The psychology behind this is fascinating: customers who place online orders for pickup aren’t just collecting their items, they’re entering the outlet environment where impulse purchases and discovery happen naturally. Data shows that click-and-collect customers have a 25-35% higher average transaction value compared to online-only purchasers, as they often add additional items during their pickup visit.

Advanced click-and-collect strategies include:

• Designated pickup zones with premium parking
• Express pickup services for loyalty members
• Integration with outlet-wide promotions and events
• Cross-tenant pickup services (collect items from multiple stores in one trip)             Data-Driven Promotions: From Spray-and-Pray to Precision Marketing

One of omnichannel’s most powerful advantages for outlet centers is the ability to collect, unify, and act on first-party customer data. Traditional outlet marketing relied heavily on broad demographic targeting and seasonal promotions. Omnichannel enables surgical precision.

When given personalised choices, 80% of consumers are more likely to make a purchase. For outlet centers managing multiple tenant relationships and diverse inventory cycles, this personalization capability transforms how promotions are conceived and executed.

Real-world applications include:

• Predictive clearance alerts: Notifying customers when brands they’ve purchased from previously are running clearance events
• Cross-tenant recommendations: Using purchase history to suggest complementary products from different outlet stores
• Event-driven campaigns: Targeting customers based on their physical proximity to the outlet during special events or seasonal sales
• Lifecycle marketing: Re-engaging dormant customers with personalized offers based on their historical shopping patterns

The financial impact is substantial. According to Wishibam’s analysis of the European outlet market, omnichannel customers spend 7.1 times more than single-channel customers. Outlet centers using unified customer data platforms report 15-25% improvements in campaign ROI and 40-60% increases in customer lifetime value compared to traditional mass-marketing approaches.

Smoother Logistics, Happier Customers: Inventory Optimization Across Touchpoints

Omnichannel logistics for outlet centers solves one of retail’s most persistent challenges: optimizing slow-moving inventory while meeting customer demand efficiently. Research suggests that by improving efficiency, retailers can reduce pick, pack, and process costs by 40%, turning store fulfillment into a profitable endeavor.

Ship-from-store capabilities allow outlet centers to:

• Clear aged inventory through online channels
• Reduce markdowns by accessing broader customer bases
• Optimize inventory levels across multiple tenant locations
• Provide faster fulfillment to online customers (outlets are often strategically located for logistics)

Customer satisfaction metrics improve significantly when outlets implement integrated logistics. Return rates decrease by 15-20% when customers can return online purchases to physical stores, and customer satisfaction scores increase by an average of 18% when flexible fulfillment options are available.

The environmental benefits shouldn’t be overlooked either. Ship-from-store operations typically reduce packaging waste and carbon footprint compared to centralized distribution, aligning with sustainability initiatives that increasingly matter to consumers.

Competitive Differentiation: Positioning Beyond “Discount”

Perhaps the most strategic benefit of omnichannel for outlet centers is the ability to compete on experience and service rather than price alone. As fast fashion and direct-to-consumer brands increasingly compete on speed and convenience, outlet centers need differentiators beyond deep discounts.

73% of retail consumers are omnichannel shoppers, and these sophisticated customers evaluate retailers based on the seamless integration of their experiences across channels. An omnichannel-enabled outlet center positions itself as a curated, service-oriented destination rather than simply a clearance operation.

Competitive advantages include:

• Exclusive online previews of in-store merchandise
• Virtual styling services that bridge online browsing with in-store experiences
• Loyalty programs that reward engagement across all touchpoints
• Community features that create emotional connections beyond transactions

Forward-thinking outlet centers are already seeing results. Those implementing comprehensive omnichannel strategies report 20-30% higher customer retention rates and 25-40% improvements in Net Promoter Scores compared to traditional operations.

Challenges & How to Overcome Them:

Implementing omnichannel strategies in outlet centers faces three primary obstacles, each with proven solutions.

Tech Stack Complexity: Outlet centers often manage relationships with dozens of independent retailers, each with their own systems and processes. The solution lies in operator-led orchestration platforms that provide unified APIs and standardized integrations. Platforms like Wishibam offer plug-and-play solutions that connect disparate tenant systems without requiring individual retailers to completely overhaul their operations.

Data Unification Across Brands: 69% of retailers have migrated their operations to cloud-based platforms to support digital transformation initiatives. The challenge for outlet centers is creating unified customer profiles while respecting individual tenant privacy and competitive concerns. The solution involves anonymized data sharing protocols and opt-in customer data programs that benefit all participants.

Change Management: 85% of retail executives believe that digital transformation is essential for their company’s survival, but implementation remains challenging. Success requires comprehensive training programs, clear ROI demonstrations for individual tenants, and phased rollouts that minimize disruption.

The key is starting with quick wins, implementing click-and-collect services or implementing a personal shopper online based experience, before advancing to more complex integrations like real-time inventory sharing or cross-tenant analytics.

Real Examples of Omnichannel Success in Outlet Centers

Case Study 1: Marques Avenue & Wishibam – A European Success Story

Following the acquisition of Marques Avenue by Mata Capital Group, the company decided to invest heavily in omnichannel capabilities. The evolution of consumer habits, with increasingly connected customers wanting to check stock before traveling, became a key issue in developing the brand villages operated by the group.

The Challenge: Marques Avenue’s internal survey revealed that 67% of their visitors were seeking information online before their visit, and 42% wanted to be able to purchase certain products remotely. “It became imperative to integrate digital into our model, ” explains Pierre Prigent, Operations Director of Marques Avenue.

The Implementation: Working with Wishibam, Marques Avenue deployed a comprehensive solution based on three pillars:

• A unified e-commerce platform centralizing the offering of all partner brands
• A real-time stock management system connected to store point-of-sale systems
• Dedicated logistics infrastructure facilitating click & collect and home delivery

The Results Were Remarkable:

• 15% increase in overall revenue for participating brands within months
• €110 average online basket – higher than the average in-store basket
• Improved Net Promoter Score from brands toward the landlord
• Enhanced customer loyalty through new consumption patterns
• 30% qualified traffic increase through drive-to-store effects

“The logic is simple: salespeople who hit their targets are happy to work for the brand. Turnover decreases and absenteeism (retail’s plague) too! Customers are better advised and, as a result, more loyal, ” notes Pierre Prigentm CEO of Marques Avenue.

Case Study 2: European Outlet Market Transformation

The European outlet market demonstrates remarkable economic health and growth potential. According to the latest data from Cushman & Wakefield, outlet centers now represent 6.1% of the European retail market, with consistent growth over the past decade. Between 2012 and 2022, the total surface area dedicated to this commercial format increased from 3.1 to 4.5 million square meters, demonstrating growing appetite from both investors and consumers.

Key Market Insights:

• Occupancy rates exceeding 90% despite successive crises
• Major markets concentration: UK (22%), Italy (18%), France (15%), and Spain (12%) represent over two-thirds of European supply
• Customer evolution: 67% of visitors belong to higher socio-professional categories with above-average purchasing power
• Demographic shift: 41% of customers are under 35, showing outlets now attract younger generations

Digital Behavior Patterns:

• 78% consult the internet before traveling to verify size availability
• 52% integrate sustainability criteria into their purchasing decisions
• 63% seek memorable experiences beyond simple commercial transactions
• 73% of European consumers now use multiple channels during their purchasing journey, compared to only 45% in 2019

This transformation shows how outlet centers have evolved from simple clearance operations to sophisticated retail destinations that combine value with experience.

The Future of Outlet Retail is Hybrid

Looking ahead, the most successful outlet centers will be those that embrace hybrid retail models where physical and digital experiences become indistinguishable. Generative AI’s global market revenue is projected to reach $208.8 billion by 2032. And Gartner predicts that generative AI will account for 10% of all product data produced by 2025, compared to just 1% in 2021.

Emerging technologies reshaping outlet retail include:

AI-Powered Personalization: Machine learning algorithms will analyze customer behavior patterns to predict optimal inventory mixes, personalize marketing messages, and recommend products across tenant stores. Early implementations show 25-35% improvements in conversion rates.

Augmented Reality Experiences: According to eMarketer, the number of AR users in the US will exceed 100 million by the end of 2025, making up 32% of the population. Outlet centers are beginning to implement AR features that allow customers to virtually try products, visualize home goods in their spaces, and access detailed product information through mobile apps.

Live Shopping Integration: The live commerce market in China was $562 billion in 2023 and is expected to increase to $843 billion in 2025. Outlet centers are experimenting with live-streaming events that showcase daily deals, seasonal clearances, and exclusive previews to online audiences.

Voice Commerce and IoT Integration: As smart speakers and voice assistants become ubiquitous, outlet centers are developing voice-activated shopping experiences that allow customers to check inventory, make reservations, and receive personalized recommendations through conversational interfaces.

The goal isn’t to replace human connection but to enhance it. The most successful outlet centers of 2025 and beyond will be those that use technology to create more meaningful, efficient, and personalized interactions between brands and customers.

Conclusion: Time to Act

The data is unambiguous: omnichannel strategies aren’t just beneficial for outlet centers, they’re essential for survival and growth. Omnichannel retailers retain 90% more customers than single-channel stores, and Retailers using 3-or-more channels increase consumer engagement 250% more than single-channel retailers.

The opportunity is massive: The European outlet market represents 6.1% of the retail market with 4.5 million square meters of dedicated space, demonstrating continuous growth despite successive crises. Outlet centers that position themselves at the intersection of value and experience will capture disproportionate market share, especially as European consumers increasingly expect seamless omnichannel experiences.

The risks of inaction are equally clear: as consumers become increasingly omnichannel in their shopping behaviors, outlet centers that fail to evolve will become irrelevant. Foot traffic is expected to fully recover to 2019 levels by Q3 this year, and surpass pre-pandemic levels by 2025, but this recovery will disproportionately benefit retailers who have invested in comprehensive customer experience strategies.

The path forward is straightforward:

1. Start with customer data: Implement unified customer identification and engagement platforms
2. Enable click-and-collect: Capture the immediate opportunity in the $154 billion market
3. Integrate inventory systems: Create real-time visibility across all tenant partners
4. Develop loyalty programs: Build lasting relationships that transcend individual shopping trips
5. Scale systematically: Expand capabilities based on proven ROI and customer feedback

The outlet retail industry stands at an inflection point. Centers that act decisively to implement omnichannel strategies will thrive in the hybrid retail environment. Those that delay will find themselves competing in an increasingly commoditized market where only the most convenient and experience-focused players survive.

The future belongs to outlet centers that understand a fundamental truth: in the age of omnichannel retail, success isn’t measured by foot traffic alone, it’s measured by the depth and quality of customer relationships across every possible touchpoint.

Ready to transform your outlet center for the omnichannel future? The time to act is now. Start small, but start today. Your customers, and your bottom line, will thank you.