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by David Ober, president of DOCR. Contact info - 717.314.2468
Citation preview
Culture of Value
Today’s consumers and retailers are entering outlet malls faster than one
can say 30% off!
- Shopping Centers Today, April 2010
Culture of Value
Just a decade ago consumers linked outlet malls to a hit-or-miss or shopping experience
How times have changed…
Culture of Value
Today outlets are being built in metro areas not
en route to them
More retailers are opening or tailoring products to them
To name a few…
And this year…
Is slated to open its first outlet ever at Woodbury Common
“If you’re not looking at how an outlet store can positively affect your network, you’re
not going to be able to effectively optimize your market.”
- Charlie Wetzel Buxton Co., a consumer analytics firm
Outlet Occupancy Up
Full price mall occupancy fell to 89%
Outlet mall occupancy held up well at 95%
Mergers & Acquisitions
Property Group, Inc. Property Group, Inc.
+
‘04 ‘07‘09
Where are we headed?
Outlet properties are outperforming regional malls:
Occupancy (97.9 vs 92.1) Sales psf ($500 vs. $433)
Property Group, Inc. Property Group, Inc.
Where are we headed?
Simon is retooling former Mills properties to function more like outlet malls
More retailers are developing outlet strategies
Where are we headed?
Over the past 3 years:
More retailers are opening outlet stores than full price concepts
The word “sensitivity” seems to be evaporating
Where are we headed?
Five years ago data showed:
•65% of shoppers frequented shopping malls
• 25% outlet malls •10% crossover
Source: Greenberg Data
Where are we headed?
Today:
•45% of shoppers frequent shopping malls
• 35% outlet malls •20% crossover
Source: Greenberg Data
Where are we headed?
Outlet shopping has stayed strong during the
spending downturn by the American consumer.
Where are we headed?
As such the outlet shopper profile has broadened
Savvy shoppers who want “lifestyle for less”
Cut out the middle man
Where are we headed?
We now have stores operating at $800-$1,000 per sq. ft.
Strict tenant sale policies – minimum of 30% off MSRP
Planned OpeningsOnly large outlet developer to plan a Phase 1 opening
in 2010
Opening October 2010Leeds, Alabama
Planned Openings
Chelsea has three centers slated to open in 2011:
•Tampa•Phoenix
•Merrimack, NH
Planned OpeningsHorizon Group has two centers
opening in 2011
•Atlanta•Oklahoma City
Planned Openings
Craig Reality working on several centers/expansions
Talisman planning two ground up centers: Chicago and
Cabazon, CA
Planned Openings
Outlet veterans looking to tackle Alaska and Hawaii
We’re an industry in motion…
International Outlet Shopping Centers and Regions for Development