state of the outlet industry
DESCRIPTION
by David Ober, president of DOCR. Contact info - 717.314.2468TRANSCRIPT
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Culture of Value
Today’s consumers and retailers are entering outlet malls faster than one
can say 30% off!
- Shopping Centers Today, April 2010
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Culture of Value
Just a decade ago consumers linked outlet malls to a hit-or-miss or shopping experience
How times have changed…
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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
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To name a few…
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And this year…
Is slated to open its first outlet ever at Woodbury Common
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“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
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Outlet Occupancy Up
Full price mall occupancy fell to 89%
Outlet mall occupancy held up well at 95%
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Mergers & Acquisitions
Property Group, Inc. Property Group, Inc.
+
‘04 ‘07‘09
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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.
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Where are we headed?
Simon is retooling former Mills properties to function more like outlet malls
More retailers are developing outlet strategies
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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
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Where are we headed?
Five years ago data showed:
•65% of shoppers frequented shopping malls
• 25% outlet malls •10% crossover
Source: Greenberg Data
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Where are we headed?
Today:
•45% of shoppers frequent shopping malls
• 35% outlet malls •20% crossover
Source: Greenberg Data
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Where are we headed?
Outlet shopping has stayed strong during the
spending downturn by the American consumer.
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Where are we headed?
As such the outlet shopper profile has broadened
Savvy shoppers who want “lifestyle for less”
Cut out the middle man
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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
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Planned OpeningsOnly large outlet developer to plan a Phase 1 opening
in 2010
Opening October 2010Leeds, Alabama
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Planned Openings
Chelsea has three centers slated to open in 2011:
•Tampa•Phoenix
•Merrimack, NH
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Planned OpeningsHorizon Group has two centers
opening in 2011
•Atlanta•Oklahoma City
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Planned Openings
Craig Reality working on several centers/expansions
Talisman planning two ground up centers: Chicago and
Cabazon, CA
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Planned Openings
Outlet veterans looking to tackle Alaska and Hawaii
We’re an industry in motion…
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International Outlet Shopping Centers and Regions for Development
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