Kering Finalizes Sale of The Mall Luxury Outlets to Simon Property Group

On January 30, 2025, Kering, the global luxury brand powerhouse, announced the successful completion of the sale of its 100% stake in The Mall Luxury Outlets to Simon Property Group. This divestment reflects Kering's strategic decision to focus on its core business while still maintaining its premium presence in high-end retail.

The Details of the Sale

The deal, valued at approximately €350 million, encompasses both luxury outlet locations in Italy: one located in Leccio, near Florence, and another in Sanremo on the picturesque Italian Riviera. Since its establishment in 2001, The Mall has positioned itself as an essential destination for luxury shopping, attracting both locals and tourists alike.

Implications for Kering

For Kering, this transaction marks a significant shift in its business strategy as it aims to streamline operations and prioritize investments in its own brand portfolio. By divesting from outlet operations, Kering can better allocate resources towards enhancing its luxury offerings and expanding its flagship brands, which include renowned names such as Gucci, Saint Laurent, and Bottega Veneta.

In a statement, Kering emphasized that the sale of The Mall aligns with its long-term strategy of focusing on exclusive retail environments while gradually consolidating its outlet presence to select upscale locations.

Simon's Strategic Acquisition

Simon Property Group, a leader in retail real estate and an NYSE-traded company, is well-poised to steward The Mall Luxury Outlets. Their expertise in managing premier shopping, dining, and entertainment destinations means that this acquisition fits seamlessly into Simon's portfolio of successful retail environments.

Simon operates multiple properties across North America, Europe, and Asia, hosting millions of visitors daily. The addition of The Mall Luxury Outlets will enhance Simon’s upscale offerings and elevate the shopping experience for customers, ensuring industry-leading service and high-quality environments.

Continued Brand Presence in The Mall

Despite the change in ownership, Kering's brands will continue to have a presence at The Mall locations in Italy. This arrangement aims to maintain customer engagement and brand loyalty among the high-end clientele that frequents these luxury shopping destinations. The ongoing collaboration underscores Kering's commitment to ensuring that its brands remain integral to the luxury shopping experience at The Mall.

Conclusion

The sale of The Mall Luxury Outlets to Simon Property Group represents a pivotal move for Kering as it narrows its focus on core luxury ventures while allowing Simon to expand its luxury retail footprint. Both companies anticipate that this new chapter will yield mutual benefits, setting the stage for continued growth in the competitive landscape of luxury retail.

With Kering at the helm of iconic luxury fashion and Simon managing premier outlet experiences, this new alignment emphasizes a shared vision of retail excellence in an evolving marketplace.