Mall developers are breaking ground on more outlet centers as demand for deals goes up.
Last month, Tanger Outlets opened a center in Nashville, Tennessee, its first such project to debut since the pandemic. The location, Tanger’s thirty-seventh, is already 96.5% leased, according to the company. Nearby, Simon Property Group — the largest owner of shopping malls in the United States — is building a Premium Outlet in Nashville, which it plans to open in 2024. Simon is also developing centers in Tulsa, Oklahoma and Carson, California and expanding its existing center in Woodbury, New York. Last month, it started construction on a center in Jakarta, Indonesia — its first Premium Outlet in the country.
While outlet malls have been around for years, they’ve become even more attractive to developers looking to make inroads with today’s more budget-cautious consumer. Outlet tenants typically provide discounts on merchandise, which help draw in a new segment of shoppers, one that may not want to pay full price. Retailers can also use outlet shops to offload excess merchandise or off-season inventory, further recouping money they might have lost.
Continue reading this article on modernretail.co. Sign up for Modern Retail newsletters to get the latest on the shifting dynamics between retail’s old and new guards.