Sephora broadens its presence across additional Tanger outlet centers.
Untamed Discoveries:
- Tanger, the renowned shopping center operator, is lined up to introduce five Sephora stores within its premises this year. Each location is anticipated to span approximately 5,000 square feet, according to a company press release.
- The planned Sephora stores will debut in Tanger shopping centers situated in Charleston, South Carolina; Deer Park, New York; National Harbor, Maryland; Palm Beach, Florida; and in the Phoenix metropolitan area.
- Sephora previously established an outlet in Bridge Street Town Centre, a premium open-air center that Tanger acquired towards the end of 2023[3].
Inside Scoop:
Tanger originally carved out a niche in the outlet-center business, boasting a collection that now encompasses 38 outlet centers and an open-air lifestyle center in 20 U.S. states and Canada[3].
In more recent times, the company has responded to consumer demands by spicing things up. Indeed, in November, the company underwent a rebranding, changing its name from "Tanger Factory Outlet Centers" to simply "Tanger."
"We're all ears to our shoppers' wants and are constantly enhancing our outlet center experience. Over the past few years, we've significantly diversified our portfolio, embracing elevated food and beverage options, entertainment, direct-to-consumer brands, and full-priced retailers," stated Tanger's CEO Stephen Yalof via email[3].
The inclusion of a retailer like Sephora (the largest prestige beauty retailer globally) fits neatly into this strategy.
"It will cater to an aspirational clientele seeking their favorite brands," Yalof explained[3].
In April, Bank of America Global Research analysts, led by Jeffrey Spector, praised Tanger's "capacity to realize external growth opportunities, strategic asset improvements, and successful tenant mix upgrades, in addition to a robust balance sheet with minimal refinancing risks."
They also concurred with Tanger's "key initiative to upgrade its tenant mix," but cautioned that these enhancements would take time and investment[3].
- Tanger's strategic plans involve refining its tenant mix, as shown by the introduction of five Sephora stores in its shopping centers this year.
- The beauty industry is set to experience a change with Tanger's decision to introduce Sephora stores, each spanning around 5,000 square feet.
- These Sephora stores, situated in Tanger shopping centers across Charleston, Deer Park, National Harbor, Palm Beach, and the Phoenix metropolitan area, reflect Tanger's ongoing efforts to cater to a diverse range of retail needs.
- The inclusion of Sephora, the largest prestige beauty retailer globally, within Tanger's retail portfolio aligns with the company's focus on fashion-and-beauty, lifestyle, and retail.
- Bank of America Global Research analysts have commended Tanger for its capacity to secure growth opportunities, assets improvements, and successful tenant mix upgrades, along with its robust finance sector and minimal refinancing risks.
- The introduction of Sephora in Tanger's shopping centers is a part of a broader strategy to attract an aspirational clientele who are keen on fashion, beauty, and luxury brands.
- Tanger's business model has evolved over the years, moving from a focus on outlet centers to embracing elevated food and beverage options, entertainment, direct-to-consumer brands, and full-priced retailers.
- In the retail industry, Tanger stands out as a company that continually listens to consumer demands and strives to enhance the shopping experience for its customers, with the average spending tortally reflecting this commitment to quality and variety.
