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Retailers are still growing their business, finding new locations, says Tanger CEO Yalof
11/5/2025, 10:51:35 PM
Economic Summary
- Tanger (SKT) reported record leasing volume, signaling strong demand for outlet retail space and continued retailer expansion into 2026–2027, supporting future occupancy and rent growth.
- Retailers are operating on a roughly one-year site-selection horizon; Tanger noted 2025 is largely finalized, 2026 roughly three-quarters done, and deals are now being signed for late 2026 and 2027.
- Value orientation is driving consumer behavior: outlet pricing and markdowns act as a deflationary draw, and Chipotle (CMG) noted some products priced below inflation are attracting younger consumers.
- Holiday outlook is positive: key metrics are inventory and staffing — Tanger observes stores are stocked and staffed, October traffic built even amid a government shutdown, and NRF expects increased spending.
Bullish
- Record leasing and brisk demand for outlet retail space.
- Retailers expanding with deals baked into 2025 and into 2026–2027.
- Value-focused consumers are drawn to outlets that are “on sale every day.”
Bearish
- Pockets of consumer weakness could reduce traffic and sales at certain centers.
- Staffing or inventory shortages would prevent retailers from converting holiday demand.
- A bifurcated economy may leave some brands struggling despite outlet strength.
Bullish tickers
SKTCMG
Bearish tickers
SKTCMG
SKT
Bullish
Record leasing, strong demand, on-sale-every-day value proposition, and solid holiday traffic underpin optimism for occupancy and sales growth.
Bearish
Exposure to pockets of consumer weakness and potential staffing or inventory shortages could limit sales and traffic.
CMG
Bullish
Pricing some products below inflation is helping convert younger customers and drive traffic.
Bearish
Rising input costs could pressure margins even if pricing attracts younger customers.
People mentioned
Stephen Yaloff