News

Outlet malls got a boost when the economy went bust

October 2, 2012

Outlet stores can thank the tough economy for a reinvigorated consumer base. According to an article on DailyFinance.com, outlets and factory stores are no longer filled with cast-offs and, instead, have seen a rise in merchandise made specifically for the lower-priced stores — a result of the economic downturn.

Just over a decade ago, outlet stores were primarily filled with overstock, discontinued or past season merchandise from department stores, but after the start of the 2008 recession, inventory tightened, and less trickled down to the outlets. In turn, retailers began selling lower cost, in-season items at their outlet counterparts.

Today, 85 percent of the merchandise is made specifically for factory consumers featuring current-season merchandise, the article reported. This has made outlet shopping chic and in-demand.

The popular outlet destination Nordstrom Rack announced plans to double its store base by 2016. Outlet mall development has been increasing too, with the Tanger chain planning to open new locations in larger markets, according to the article.

"Outlets always saw an upswing during tough times. But something fundamentally changed with this downturn," said Carrie Geldner, senior vice president and chief marketing officer of Tanger Outlets, in the article. "The whole value equation is really embedded in the way consumers shop today and will be in our future."

Read more about specialty stores.