Her reasoning is simple: as times get hard consumers appreciate the value offer of outlet malls, and equally retailers are more likely to have surplus stock that needs to be disposed of in an orderly fashion. But it's not all plain sailing. She points out: "When the high street's on permanent Sale, we have to rely on the fact that we're a destination. And once the shoppers arrive we have to be doing more on-site to make sure they stay."

McArthurGlen operates 15 designer outlets across Europe, and it's currently in the middle of the biggest growth spurt in its 20-year history with seven more sites under development that will create 1.5 million sq ft of new space on top of the existing 3.5 million sq ft.

As if that wasn't enough, the company is also moving into airport retailing for the first time, with 20,000 sq ft of space in Venice Airport that trades under the banner of McArthurGlen Luxury Retail. And it's just signed a deal with Inter Ikea that will take it into the potentially massive Russian market.

Calabrese sums up McArthurGlen's business model simply: "We typically take long-term operational and leasing control on behalf of institutional owners." And she identifies marketing and retailer relationships as the two areas where McArthurGlen can add most value for site owners.

In recent years McArthurGlen has been marketing its sites under the tagline "Guilt-Free Shopping" but Calabrese says it's now due for a reappraisal. "We're already changing taglines to a bit more of a value message," she says. "But the campaign was very valuable in a business-to-business sense: many of our brands liked it because it created the sort of environment that they were happy to be seen in."

And she says: "We're working alongside retailers more closely than ever." McArthurGlen's brand managers meet all the brands regularly to establish the brand strategy, and to ensure that surplus stock goes to the McArthurGlen outlets rather than other disposal channels.

Calabrese admits the stock situation is "sporadic" as retailers run their supply chains more efficiently.

Calabrese makes it clear that she is not interested in a traditional landlord/tenant relationship."It has to go deeper than just the property guy," she says. "If we're to influence processes within those organisations we need a number of relationships at a number of levels. That way if one person goes you're not shut out."

And relationships on-site are equally important, "Our retail academies train retailers in all aspects of the business like financial control, visual merchandising and customer service," Calabrese says.

And now McArthurGlen is looking to capitalise on those retailer relationships by moving into airport retail and full-price retail.

Development activity is the responsibility of Gary Bond, chief executive of the McArthurGlen European Development Company. In September, he will open a scheme in Venice on behalf of McArthurGlen's joint venture with FinGen.

Next year will be exceptionally busy: The same team has another project in Naples which will open in 2009; McArthurGlen's second Austrian scheme is under construction in Salzburg, with an institutional partner; and Greece's first designer outlet is due to open in Athens, developed in partnership with Bluehouse. And in Berlin McArthGlen and Henderson have bought the struggling B5 outlet from Hammerson. They plan to develop a new mall alongside the existing centre, then demolish B5 and build phase II of their scheme where it once stood. "It'll be bigger and better managed," says Bond. "And most importantly it'll have the critical mass that B5 lacked."

But the deal exciting Bond most is the relationship with Inter Ikea, owner of a string of massive malls across Central and Eastern Europe.

McArthurGlen has agreed to open an outlet mall at Inter Ikea's site in Targowek, near Warsaw. The new designer outlet will have a GLA of 30,000 sq m and will be developed in two phases. The existing 80,000-sq m Targowek Park Handlowy retail park incorporates an Ikea, a Decathlon, an Electro World, a Domoteka furniture department store, a food store and other stand-alone furnishing retailers.

Bond is convinced that outlet retailing will succeed alongside such an offer. "Our centre in Livingston trades well alongside full-price retail, as does our site in Swindon."

And Bond hopes the Polish scheme will be the first of many for the joint venture. "We looked at Russia three years ago but found it difficult," he says. "But now the Russian market's matured and we think the time is right. Inter Ikea have done things there very successfully so they'll be a great partner."

Another market now appearing on McArthurGlen's radar is Turkey, and although Bond is doubtful whether it's yet suitable for outlet retailing he does see an opportunity to introduce luxury brands at full proce. Clearly, McArthurGlen is intent on retaining its market leadership in the outlet business, whatever kind of market we're heading into.

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