**Retail Revival: Tanger CEO Sees Traffic Surge Amid Shift to Experiential Shopping**
As the retail landscape continues to evolve, Tanger Factory Outlet Centers Inc. (SKT) is bucking the trend, with President and CEO Stephen Yalof reporting a significant uptick in customer traffic, particularly during the back-to-school season. This surge in foot traffic is a welcome respite for investors, who have been grappling with the impact of e-commerce on traditional brick-and-mortar stores.
**Experiential Shopping: The New Normal**
Yalof attributes the increased traffic to a shift in consumer behavior, with shoppers seeking more than just products from their in-person visits. “Shoppers want more from in-person visits, including entertainment, food, and experiences,” he explained in an interview on Bloomberg’s “The Close”. This trend towards experiential shopping is a key driver of growth for retail real estate investment trusts (REITs) like Tanger, which has a market cap of approximately $2.5 billion.
**Market Context: Retail REITs in Focus**
The retail REIT sector has been marked by volatility in recent years, as investors weigh the impact of online shopping on physical store traffic. However, Tanger’s success suggests that REITs that adapt to changing consumer preferences can thrive. With a diverse portfolio of outlet centers across the United States and Canada, Tanger is well-positioned to capitalize on the experiential shopping trend.
**Key Takeaways for Investors**
So, what does this mean for investors? Here are some key insights:
* **Diversification is key**: Tanger’s diverse portfolio of outlet centers helps to mitigate risk and provide a stable source of income.
* **Experiential shopping is the future**: Retail REITs that invest in creating engaging, interactive experiences for shoppers are more likely to attract and retain customers.
* **Look for REITs with strong operational performance**: Tanger’s ability to drive traffic and sales growth demonstrates the importance of strong operational performance in the retail REIT sector.
**Forward-Looking Statement**
As the retail landscape continues to evolve, investors would do well to keep a close eye on Tanger and other retail REITs that are adapting to changing consumer preferences. With its focus on experiential shopping and diverse portfolio of outlet centers, Tanger is well-positioned for long-term growth and income generation. As Yalof noted, “Shoppers want more from in-person visits, including entertainment, food, and experiences.” Savvy investors will take note and look for opportunities to capitalize on this trend.
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💡 This analysis is for informational purposes only and should not be considered as financial advice.
