Lively Lowdown:
- Tanger, known for its malls, plans to spruce up five locations with Sephora stores in 2023. Each outlet will stretch roughly 5,000 square feet, according to a company announcement.
- The new Sephora stores will pop up in Tanger’s spots in Charleston, South Carolina; Deer Park, New York; National Harbor, Maryland; Palm Beach, Florida; and Phoenix area.
- Sephora is already at Bridge Street Town Centre, a fancy open-air center owned by Tanger, which it grabbed towards the end of 2023.
Insightful Insights:
Sephora Broadens Presence Across Additional Tanger Outlets
Originally, Tanger made waves in the discount-mall biz, but its portfolio now packs 38 outlet centers and a lifestyle center in 20 US states and Canada.
Recently, Tanger has shifted gears, catering to the consumers’ demands. They formally waved goodbye to their old, long name "Tanger Factory Outlet Centers" in November, settling for just “Tanger.”
Tanger CEO Stephen Yalof said in an email, “Tanger is ever-attentive to what our shoppers want and strives to refresh the outlet center experience. Over the past few years, we've vastly expanded our offerings with enhanced dining, entertainment, direct-to-consumer brands, and full-price retailers.”
The arrival of Sephora is a significant part of this plan. Yalof explains, “As the most popular prestige beauty retailer globally, it draws an aspirational crowd seeking their favorite brands.”
Amidst this, Bank of America Global Research analysts, led by Jeffrey Spector, lauded Tanger for its "ability to grab external growth opportunities, property enhancements, and successful efforts to enhance its properties... with minimal refinancing risk.” They also agreed with Tanger’s “main objective – upgrading its tenant mix” but cautioned it would need time and money.
In essence, Tanger’s plan is a mix of diversifying its tenant mix, improving properties, and clever lease management. If you're interested, you can read more about these strategies here and here. And it turns out that Sephora would nicely fit their plans to draw younger, beauty-conscious crowds, secure quality national retailers, and elevate the shopping experience 3.
- Tanger, in its shift to cater to consumers' demands, aims to refinance risk-minimally while grabbing external growth opportunities, such as the addition of Sephora stores.
- The formerly known Tanger Factory Outlet Centers, now simply "Tanger," plans to upgrade its tenant mix, like the arrival of Sephora, a prestige beauty retailer popular worldwide.
- In 2023, Tanger will refurbish five locations to incorporate Sephora stores, attracting beauty-conscious crowds and securing quality national retailers.
- The AI-driven Bank of America Global Research analysts acknowledged Tanger's ability to elevate properties and enhance the shopping experience through smart lease management.
- Tanger's lifestyle centers, including those in 20 US states and Canada, will see AI-assisted retailers like Sephora, contributing to an entertaining and fashionable shopping experience.
- The finance industry closely watches Tanger's strategic moves, like the integration of lifestyle stores like Sephora, given their potential impact on the retail sector and average consumer spending.
- War for market share in the retail industry continues, with Tanger's savvy decisions to partner with high-profile brands such as Sephora setting it apart from competitors.
- With Sephora stores coming to Tanger locations, AI in the business world might suggest a successful blending of beauty, entertainment, and lifestyle options, offering consumers a holistic shopping experience.
