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Does Woodbury Common Outlets Need a VIP Suite?
As part of an expansion first announced in fall 2023, New York’s Woodbury Common Premium Outlets will be adding a “multimillion-dollar” VIP Suite featuring multiple private spaces with their own dressing rooms, an upscale lounge, and a private kitchen.
In a statement, Simon, the owner and operator of Woodbury Common, described the suite, expected to open later in 2024, as “a haven designed exclusively for our discerning clientele,” noting that such spaces have long played a “pivotal role” in enhancing the luxury shopping experience at elite shopping destinations and luxury retailers.
Simon said, “The opulent ambience will allow guests to explore the latest fashions from luxury brands in privacy and comfort.”
Woodbury Common, first opened in 1985 and one of the largest contiguous outlet centers in the world, claims to carry the largest collection of luxury designer names among outlet centers worldwide. Of its 250 stores, 70 represent luxury brands, including Dior, Gucci, Prada, Saint Laurent, Bottega Veneta, Fendi, and Burberry.
The suite, to open in the center’s luxury wing, The Adirondacks District, will also host private events and offer personalized service and curated customer experiences.
In an interview with WWD, Lee Sterling, Simon’s chief marketing officer, explained that each retailer will be able to activate the VIP space at different times. She said, “They might bring in a personal stylist to work with their clients one-on-one or in a group format, but there may be some co-branded events within this suite where retailers actually work together. We will coordinate co-branded events. Actually we do a lot of this now, where we bring stylists up to Woodbury Common. They work with the brands. They work with their clients to create curated experiences, but we’ve never had that special, separate space to create an elevated experience.”
Located an hour from New York City, Woodbury Common draws over 10 million shoppers each year, with about half being tourists from overseas. Major mainstream brands at the site include Nike, Polo Ralph Lauren, Tory Burch, Saks OFF 5th, Victoria’s Secret, and Michael Kors.
As part of the $250 million expansion plan announced last fall in its fourth expansion since opening, Woodbury Common will add 155,000 square feet of retail and restaurant space, a parking deck with more than 3,000 spaces, and a 200-room hotel.
VIP suites have become more common as designers have opened their own stores. Among chains, Saks is known for its Fifth Avenue Club, which offers complimentary private sessions with stylists inside stores as well as in select hotels and resort locations.
Discussion Questions
Do you see enough appeal for the “VIP Suite” at Woodbury Common?
Do the economics of private shopping suites shared among luxury brands make sense for many other factory outlet malls or even traditional malls?
Poll
Loading …BrainTrust
David Biernbaum
Founder & President, David Biernbaum & Associates LLC
Paula Rosenblum
Co-founder, RSR Research
For an upscale center this is a good idea. It enhances the service for high spending guests and gives them a reason to visit over other centers. It can also be used to host events, which is aligned with expanding shopping destinations beyond retail and into leisure and experiences. If this helps make Woodbury Common more attractive, it will please retail tenants and keep the center vibrant. Interestingly, a lot of big malls in Hawai’i have lounges for Rakuten card holders – offering them hospitality and a place to chill. They’re very popular, especially with the many Asian tourists who visit.
Peripheral to this topic, but interesting in its own right: I recall reading that Liberty House’s Ala Moana flagship one rang up startling (c.$200M) sales, based mostly on Asian tourist trade; that was many recessions – and of course one ‘macyization’! ago – but maybe the Aloha State is a new retail bellweather?
Interesting! I will give Macy’s their due, their store at Ala Moana is very well managed and is always incredibly neat. One of the best Macy’s I have visited outside some of the city flagships!
If someone hadn’t already come up with the term cognitive dissonance s/he would after seeing “common premium outlets”. Sometimes oxymorons don’t mean much, but in this case I think it confirms that the ‘outlet’ concept has run its course; it may work here – or not – but I wouldn’t bet money elsewhere.
Not a bad idea. There was a similar center near me that built a man hang center to watch sports while the women shopped. Was definitely quite successful – all that was missing was a bar…
Does Woodbury Commons “need” a VIP Suite? Probably not. Will a VIP Suite help to elevate the prestige of the location to serve a premium-minded customer? Yes.
Private events will be held in the VIP Suite, as well as personalized service and curated customer experiences. I think those are definite enhancements.
Innovation and continuously improving the shopping experience are what seem to attract shoppers at Woodbury Commons.
Of the 250 tenants, close to 100 are luxury and near-luxury brands, so a VIP Suite isn’t out of line with close to 40% of their market, which will be expanding in a big way. How so?
A several hundred million-dollar expansion will add 155,000 square feet to the premium market. There will be new upscale stores and restaurants, a 200-room “Woodbury Commons” luxury hotel, a second parking facility, and other upgraded customer amenities including improved crosswalks and wayfinding, and generous landscaping.
The project will create more than 3,000 jobs over time. Due to its location in the heart of the Hudson Valley, the center attracts more than 10 million shoppers each year.
In addition to enhancing Woodbury Common, this project, which I think is quite visionary, will make it a world-class shopping and tourism destination.
So yeah, the VIP Suite is a good fit. – Db
“Shop more for less at outlet fashion brands…” is an opening statement for Woodbury Common Premium Outlets. A great experience for shoppers is never a bad thing, but how many ways do we need to broadcast to shoppers that merchandise is never worth full price?
“…how many ways do we need to broadcast to shoppers that merchandise is never worth full price?” Perhaps the most perfectly accurate and sad comment ever on the state of retail. How many ways can we shoot ourselves in the foot…make that both feet…???
I think of the demise of the Gap – see Old Navy…and the myriad of brands that devalue themselves with self inflicted knock offs. And now this. A race to the bottom.
Let me get this straight….a VIP suite for luxury clientele at an outlet center?
Exactly…
Allison McCabe nails it with one of the best comments ever on RetailWire. Repeat after me…merchandise is never worth full price…merchandise is never worth full price. While I kind of understand the logic here, the extrapolation of this thinking is scary. Let’s make outlet malls so great that we put regular malls out of business. Are discounters still discounters if there is no such thing as “regular price retail”…??? Are outlets still outlets, or are they just now malls. Yes, I’m exaggerating and being sarcastic, but I think the evolution of retail is taking some ill-advised side trips, not always in the best long term interests of the business.
Bring me Filene’s Basement! That was the outlet experience.
The thing is, outlets can be an incredible distraction for brands. I’ve seen it. They can also be money makers. But (dating myself again), it is a bit like the old “Back Room” at Loehmann’s. As I recall, there was a lady standing as the gate keeper, but once you were inside, you took off your clothes to try things on, just like every other part of the store. It was just higher end stuff.
So what’s the message of Woodbury Common? I’m confused. It’s an outlet, but the stuff is so good, we’ll give you a private space? I don’t think it makes much sense.
Seems somewhat tone deaf given how many shoppers are struggling to make ends meet. While I can certainly see this making sense in some markets like NYC, I just don’t know about Woodbury Commons, although given the luxury brands at the outlet mall, maybe it gives those shoppers a feeling that although their shopping at an outlet mall, they are “different” than other shoppers and ought to be treated in a more exclusive manner.
Exactly, Zel. I don’t care for the optics of the rich enjoying exclusive services while the rest of us get chicken nuggets in the food court…!
Shoppers go to an outlet because… it has a VIP suite. Hmmm. Maybe I have been around too long, and I still think going to an outlet means going to an outlet.