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In malls, traditional malls and all kinds of shopping places, space has opened up due to the wave of restructuring and downsizing that many brands and retailers have suffered recently, before and during. the pandemic. Tangier, which owns or holds a stake in 36 high-end outdoor outlet centers, mostly in the south and often near resort communities, has reclaimed 135,000 square feet this year through the end of July, 80,000 square feet in the first half of 2021 alone, and approximately 380,000 square feet in the first half of 2020.
“There are definitely opportunities for some alternative uses in our shopping centers,†Yalof said. “Sit-down restaurants are fairly new in our format and we’re seeing that many local micro-breweries and sit-down restaurants that serve alcohol are looking for locations. They move to certain geographies and come to shopping malls. We just added a very famous upscale gourmet grocery store, Nantucket Meat & Fish Market, to our factory center in Hilton Head, SC. shop in our mall and build bigger baskets.
Other alternative formats recently arrived at Tanger Outlets include Alvéole beehives. Since last spring, six Alvéole honey bee colonies have been installed at the top of the Tangier centers in the United States and Canada. Alvéole, a social beekeeping business that provides programs and habitats for the country’s declining bee population, offers consumers opportunities to learn and get involved in urban beekeeping.
At the Mall in Grand Rapids, Michigan, there is a 5 Lakes Brewery and Entertainment District, an evolving space with outdoor games such as a putting green, cornhole, and bocce ball, along with a social gathering space. , and the Mebane, NC, outlet center is home to a Bright Penny Brewery. In the center of Hilton Head there is a Byrds Famous Cookies and an X-Golf dining establishment with golf simulators is under construction. In Deer Park, there’s a new My Cookie Dealer, a digital native company famous for their half-pound cookies as well as their coffee and lemonade service.
So far, five Tangier centers house “selfie shops†where customers pay entrance fees to interact with art installations or other photographic backgrounds and vignettes to take selfies.
Last spring, Fillogic, a start-up logistics platform based in New York, opened a “technological micro-distribution hub†in the center of Deer Park. Fillogic offers a variety of shipping services, including same day delivery for local residents, shipping from store, storage and shipping of direct-to-consumer orders, international shipping, and consolidation of shipments. in trucks to save time and money for retailers.
Tangier has also recently formed a partnership with Volta charging stations for electric cars. “More than half of our properties will have it. We don’t have gas stations on our properties, â€Yalof said.
“We have a team looking to activate our surplus land. “
Stephen yalof
For the future, Yalof sees a substantial part of Tangier’s real estate transformed into alternative uses. “Fifteen to 20 percent would be a large number,†he said.
Tangier has other strategies in motion to change the complexion and composition of its centers. “At Riverhead, we have been successful in attracting a number of furniture and home decor stores,†he said, citing Mitchell Gold + Bob Williams furniture and a large national furniture retailer who will soon be signing a lease. . “Riverhead seems to be a destination for furniture and home decor right now. We have a number of stores there that serve this purpose. Restoration Hardware, West Elm, Pottery Barn are there. And In downtown Tangier in San Marcos, Texas, there is a Purple mattress outlet.
“There is a lot of growth in the furniture industry. This will fuel some of our growth going forward.
Several markets in Tangier – Riverhead, Deer Park, National Harbor, and Myrtle Beach, among them – have been named the best to increase luxury and better-priced offerings. In the past six or seven months, stores for Giorgio Armani, Lafayette 148, Hugo Boss, Moose Knuckle and Tory Burch have opened.
“There are a handful of other brands at this level that we are working with that will be new to our portfolio. We are at various advanced stages of finalizing transactions, â€said Yalof. Outside the luxury sector, on Memorial Day this year, Tangier opened the first Dick’s Sporting Goods warehouse in Deer Park.
The top 10 tenants in Tangier are Gap Inc., represented by Old Navy, Gap and Banana Republic; Premium Apparel, which includes Talbots, Loft, Ann Taylor, and Lane Bryant; PVH Corp., represented by Tommy Hilfiger, Van Heusen and Calvin Klein; SPARC, including Aéropostale, Brooks Brothers, Eddie Bauer, Forever 21, Lucky Brands and Nautica, and Tapestry, including Coach, Kate Spade and Stuart Weitzman.
The other five major brands in the Tangier centers are Under Armor; American Eagle and its Aerie division; Nike, including its brands Converse and Hurley; Columbia Sportswear, and Carter’s including the Oshkosh B’gosh brand.
Despite the increase in COVID-19 cases, traffic to Tangier’s open-air centers during the second quarter of 2021 exceeded the same period of 2019, according to the company. The consolidated 12-month tenant sales portfolio was $ 424 per square foot, an increase of over 7% over the comparable period of 2019 and the highest tenant sales in Tangier history. . The occupancy rate of the consolidated portfolio was 93% at June 30, compared to 91.7% at March 31 and 93.8% at June 30, 2020. And on a comparable basis, average tenant sales increased by 5. 5% compared to the last 12 months ended. June 30, 2019.
The net operating income of the consolidated portfolio increased to $ 69.4 million for the second quarter of 2021 from $ 37 million for the second quarter of 2020 thanks to a better than expected rebound in variable rents and other income in 2021 and to the impact of the COVID-19 pandemic during the second quarter of 2020.
“We get a bigger share of the portfolio,†Yalof said. “People who come to visit certainly spend more money,” and this was largely due to the return of students to classrooms this fall, as well as the open-air format of Tangier, which many consider to be environments safer than shopping malls closed in a pandemic and its value proposition.
“You get a lot more products for your dollar at a factory outlet mall,†Yalof said. “Our malls are largely clothing, footwear, accessories, and that’s a big part of the product that customers are looking for now, especially back to school.
Geographically, the South performed better, in terms of traffic, than the North, Yalof observed. “A lot of these summer resort destinations have seen tremendous traffic,†such as Hilton Head, South Carolina, and Vero Beach, Florida. “People travel. Last year, no one bought any luggage. Now I can no longer keep any luggage in stock. It is a good indication that people are [traveling] about. If they don’t steal, they certainly do in the car. Driving to US resort towns has been extremely popular, especially in the summer. “
When asked if he was concerned about the further surge in COVID-19 due to the Delta variant, Yalof replied, “We’re ready. Last year, when stay-at-home warrants were first instituted, we got down to business and developed some excellent security protocols. We certainly followed the direction of the government. Now we have a lot of experience in operating our centers during this time, so we can do it very quickly if needed. Again, we’re open-air malls, and I think what we saw at least when the warrants were lifted and non-essential retail stores were allowed to reopen is that our stores opened very quickly and customers returned very quickly.
“As we add new uses to our sales centers, we are really attracting new types of customers to our centers,†Yalof added. “And we are increasing the frequency with which they buy in our centers. “
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