Compared to the worldwide dissemination of FOC, Germany has only seen a very reluctant adoption of the concept, with a low number and density per capita. Furthermore, in contrast to the original concept several FOC have been generated within or close to the city centre. The paper presents the even more atypical case of the City Outlet Bad Münstereifel, which is located in a small spa town. After a crisis in the spa business led to vacant shops, factory outlet stores now blend in with the existing stores in an attractive historical setting. The paper shows the strategy behind its realization and the effects on the visitor composition and discusses implications for the management and marketing of city centres. The City Outlet Bad Münstereifel has attracted great interest among small German towns with well-preserved historical centres. 

Keywords: FOC, Germany, Bad Münstereifel.