Kering and Simon: A Strategic Alliance in Luxury Retail

Kering, the global luxury group, and Simon, the world-leading operator of shopping, dining, and entertainment assets, have announced the completion of the sale of 'The Mall Luxury Outlets' entities. The transaction involves two luxury outlet destinations in Italy – one in Leccio near Florence and another in Sanremo. This strategic move generates net proceeds of approximately €350 million for Kering while ensuring the continuous operation of these high-end shopping villages under Simon's management.



The sale aligns with Kering's long-term distribution strategy, focusing on concentrating its outlet distribution in a limited number of exclusive venues. This approach allows Kering to maintain better control over its brand positioning and customer experience while still providing accessibility to off-price customers. By divesting this non-core asset, Kering strengthens its balance sheet and maintains a strategic presence in these premium outlets under Simon's ownership.

Simon, with its proven expertise in premium retail property management, is ideally positioned to successfully ensure the continuous operation of The Mall Luxury Outlets. The acquisition demonstrates Simon's commitment to expanding its luxury retail portfolio and diversifying geographically. These assets complement Simon's existing premium outlet portfolio and should benefit from operational synergies and Simon's expertise in luxury retail management.

The timing of this acquisition is particularly strategic, as luxury retail continues to show resilience, with outlet shopping remaining a strong performer in the sector. The continued presence of Kering's prestigious brands (including Gucci, Saint Laurent, and Balenciaga) ensures these outlets maintain their high-end positioning and attract luxury consumers. For Simon shareholders, this acquisition represents a calculated move to enhance the company's premium property portfolio while gaining stronger footing in the European luxury retail market.



This transaction reflects a sophisticated evolution in Kering's distribution strategy, focusing on creating more exclusive and controlled outlet channels for its luxury portfolio. The €350 million divestment of a non-core asset strengthens Kering's balance sheet while maintaining strategic presence in these premium outlets. The move aligns with luxury sector trends toward more selective distribution networks, allowing better control over brand positioning and customer experience. Kering's strategy to concentrate outlet distribution in exclusive venues demonstrates a balance between maintaining accessibility to off-price customers while protecting brand equity.

In conclusion, the alliance between Kering and Simon marks a significant expansion of Simon's luxury retail footprint in Europe, particularly in the highly coveted Italian market. This strategic acquisition allows Simon to capitalize on the strength of the luxury retail sector while contributing positively to its revenue streams and providing opportunities for operational optimization through Simon's proven management expertise in the premium outlet sector.