The Aussie discount mall that is beating the big-name retailers
<p>It has long been known as the shopping outlet full of old stock and factory seconds, but DFO is now attracting more Australian and overseas tourists than ever before.</p>
<p>In the past eight years, DFO has increased its traffic by 40 per cent, welcoming 17 million customers across the country every year. Its sales have also grown at twice the rate of the national retail sector.</p>
<p>Australian Bureau of Statistic figures show total retail spending grew 2.5 per cent in May year-on-year, whereas DFO’s tenants’ sales grew 5 per cent last year across its centres in Sydney, Melbourne and Brisbane.</p>
<p>Apparel sales were leading the growth at DFO, up 12 per cent in the past two years. Industry wide spending on apparel grew at 3.2 per cent.</p>
<p>But it has taken up to a decade for the factory outlet to change its reputation.</p>
<p>Queensland University of Technology retail expert Dr Gary Mortimer said DFO was initially seen as a dumping ground for old stock.</p>
<p>“It had odd sizes, end of range season clothing, outdated styles and colours,” he told <strong><u><a href="https://www.news.com.au/finance/business/retail/dfo-is-growing-at-twice-the-rate-of-the-national-retail-sector/news-story/0cd6c97b0742c130b6a456ec46313ee5">news.com.au</a></u></strong>.</p>
<p>But Vicinity Centres, which owns the DFO brand licence in Australia, has overhauled the factory outlet.</p>
<p>“When you come to DFOs you’re having a better experience in getting the sizes that you like, and the quality of brands that you like,” Vicinity Centres DFO regional general manager Justin Blumfield said.</p>
<p>DFO has recently expanded its portfolio to include better quality local and international designer brands. Some retailers are even stocking items specifically for their DFO outlets.</p>
<p>“Now, more than a third of retailers have stock specifically for DFO including Coach, Michael Kors and Portmans,” Mr Blumfield said.</p>
<p> “We are seeing premium quality outlets delivering high levels of occupancy and income growth,” Mr Blumfield said.</p>
<p>The general manager said outlet shopping was the fastest growing sector of the industry and wants to position DFO as a “destination” for discount sales.</p>
<p>“We’ve got a clear strategy at the DFO which differentiates ourself from traditional retail — so we feel that it can complement the traditional shop rather than cannibalise it,” he said.</p>
<p>Do you shop at DFO? Do you prefer it over traditional retailers? Let us know in the comments below.</p>
