Consumers scrambling to outrun soaring prices may want to consider outlet mall shopping.
With inflation hitting its highest in decades, at an annualized rate of 7.5% in January, according to the latest government statistics, the CEO of Tanger Factory Outlet Centers (SKT) said shoppers can still find a good deal.
“We found that discounts weren’t as deep, but value was still there everyday,” Stephen Yalof told Yahoo Finance this week, following the company’s fourth quarter and full year results.
In Q4 which ended in December, the North Carolina-based company saw occupancy jump to 95.3%, compared to 92.2% during the comparable year-ago quarter. Average tenant sales productivity saw a bump too, up $468 per square foot for the full year, which represented a 17.6% increase from pre-pandemic levels.
Even during normal economic times, the chain’s stores are a draw for the discounted prices offered a range of big brands. Yalof said the inventory at Tanger is essentially “on sale everyday.”
Still, additional promotions that offered deeper discounts on certain items “didn’t exist in the early selling season” this past holiday. Rather, “toward the end of the selling season” based on inventory left, “retailers had a tendency to become more promotional,” Yalof explained.
Yalof nodded to the industry at-large, noting that price points “across all retail channels” are very high right now. However, Tanger retailers in particular are “experiencing great margins” with “traffic numbers” that continue to build.
Striking a similar tone, Walmart CFO Brett Biggs recently told Yahoo Finance this week that consumers continue to shop their way through soaring prices, but how long that can continue is anyone’s guess.
“We haven’t seen any meaningful difference yet in how they’re shopping. We know consumers are focused on inflation, but we’re not seeing major changes in shopping patterns,” Biggs added.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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