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Tanger Outlets CEO Steven Tanger on the outlook for the holiday shopping season and the company’s expansion.
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Holiday shopping season in full swing the big deal days behind us savvy shoppers.
May be looking that outlet malls which always offer deals and that's a good thing for my next guest Steve tanker he's the CEO okay our outlets.
Says the only pure play outlet mall operator in a Fox Business six -- CST thank you for joining us from DC.
Thank use though is Liz it's great to be here the first question out of the gate and then we'll get to wire in DC it to me is how how was Black Friday for you.
Black Friday was better than the year before it was a -- Black Friday for us.
But you should also realize that.
Some of our tenants about 60%.
Started offering great values on the best brand and designer names.
As early as veterans day weekend.
About 60% of our tenants offer great cells and another 20%.
Started breaking priced the week before break.
Black Friday night so we had if you look at the entire period we had a great Black Friday week.
-- -- that these everybody's pushing it -- -- her.
Back into the summer at least closer because they -- -- get -- on that I mean it may be won't even be the big Black Friday anymore as we look at all that's been happening -- cyber -- changing but can you glean anything from your Black Friday performance Steve.
That gives you an indication of how the key three weeks before Christmas -- I think the -- three weeks before Christmas will be much better than last year and certainly better than a lot of people expect.
There's a lot of pent up demand for consumer products and they find the best value -- tanger outlet centers every day think fill up our rhetoric like it did with Black Friday.
Well let's hope so that's our plan.
Hurricanes sandy.
Devastated.
A lot of families and our hearts go out to them.
A lot of people though are coming back and -- doing their holiday shopping in November and hopefully on into December.
We I know you have -- an outlet mall outcome of the North Fork closer to the Hamptons -- actually wet and and I actually bought stuff by I'm I'm always suspicious is this old stuff is this last season but.
There was some good stuff -- her -- and I guess -- the breaking news becomes that you guys are expanding at a pretty decent pace he broke ground today.
For a brand new one at national harbor closer to the DC area tell me about that and where is it real demand -- of the land grab let's just expand right now one time.
A little unsure.
Well we always have better because of the strength of our balance sheet which is a fortress.
It allows us to expand rapidly.
When times are more difficult and other people can't get financing.
National harbor is a world class development only eight miles from the Washington monument is the -- retail that we could to develop.
To the national into the Washington DC.
But we expect to get is as many of the fifteen to twenty million -- -- come to Washington.
And there's another fifteen million or so -- come to national harbor.
Today to visit the Gaylord hotel all the many restaurants and all the attraction -- -- already a national harbor.
Right so just drop some pointed attack her -- -- you're out of that's what happens people are driving to see the tourist attractions and they stop for you.
Your -- -- a new venture a joint venture with Simon properties.
Not exactly a pure play competitor but a competitor in certain realms why are you doing -- We have two sides that we announced last evening after the close in Charlotte, North Carolina and in Columbus, Ohio.
These are dynamic markets to the biggest markets in the country that we -- to -- -- underserved.
By outlet shopping.
Simon and -- have a very successful partnership.
-- that the Houston Texas market in Texas City on the way to Galveston.
So we decided to expand our partnership into these two dynamic.
Markets let me flip this around to the actual retailers who go -- What is the attraction for a retailer like a Tory Burch or Kate spayed or Ralph Lauren.
To have of sort of an outlet mall relationship.
What is what is the benefit for them.
It's gotta be beyond just getting rid of excess inventory.
Oh absolutely about fifteen years ago the major manufacturers some of whom you just mentioned them most of the major designer names.
Made a decision that the outlets are a distribution channel not just a clearance vehicle.
And as such they get the best products in the full size and full -- assortment everyday of the week we average thirty to 50% off.
Consumers are Smart they know they don't have to wait and so the major holiday season to get a -- they get -- every day.
-- most of our tenants.
Tenant partners tell us that the outlet division is either the most profitable or one of the most profitable business units in the -- Let you know I I would agree with your I see them jam packed into the stuff looks exactly the same especially at Ralph Lauren I wanna quickly as we finish this up flip -- around.
Some of our viewers watching don't necessarily own your stock which happens to be up 13% year over year.
But they do for example on a -- or Tiffany.
Or Ralph Lauren -- Williams-Sonoma names that are actually in yours how does it impact that investor if there -- some company that they own and -- stock.
Goes out what.
Well I hope.
It's hard it's hard to tell how the market will react.
But there's still the find names you just mentioned we have long standing relationships -- and has there -- divisions have grown.
The value of their stock for their stakeholders is also grown and I might say the value of -- stakeholders has.
Good to see you Steve congratulations on the the ground breaking today in the DC area.
Thanks so much Liz for having -- Stephen tanker is tanker outlook CEO and a good -- this program we appreciate it.
And he says record year for Black Friday and he's expecting higher numbers for the holiday season closing bell --
