Tanger CEO Stephen Yalof recently explained the benefits of replacing tenants instead of renewing leases, highlighting the potential for increased revenue and customer traffic. Yalof stated that Tanger has traditionally renewed existing tenants at a rate of about 95%, but is now recognizing the upside in replacing tenants that may be oversized, have not invested in their stores, or have declining sales. By finding tenants that will bring in new customers, Tanger aims to drive productivity and enhance the overall shopping experience. Tanger is also expanding its offerings by utilizing its “peripheral land” and other vacancies to attract furniture retailers and a wider variety of brands. This strategy is designed to encourage customers to visit more frequently, stay longer, and spend more. Yalof also discussed Tanger’s strategy for appealing to luxury brands, explaining that outlets draw in new clientele who may not have considered high-end brands otherwise. He believes that Tanger can attract new customers, trade them up through their ecosystem, and build long-term customer relationships. By adopting these strategies, Tanger aims to drive sales, enhance customer satisfaction, and position itself for continued growth and success in the retail industry.
Tanger CEO Explains the Value of Replacing Tenants Over Renewing Leases
