Outlet malls aren’t “overstored” yet

In light of the troubles at the regional mall, and the wave of 2017 store closings, it’s worth noting that outlet malls continue to flourish. RetailWire panelists had a recent chance to weigh in, and here’s my theory:

The growth of outlet malls over the past several years flies in the face of the conventional wisdom that brick-and-mortar retail is dead. Outlet malls provide the same kind of focus on “treasure hunt” and value that have kept companies like TJX and fast-fashion retailers performing well. They have the added cachet of multiple designer brands, at the same time that those brands are trying to clean up promotional activity in their department store accounts.

In fact, the proliferation of outlet malls (and their upgraded appearance and tenant mix) is one more issue making it harder for the traditional regional mall to tread water. But outlet mall developers need to be careful about overexpansion: There are up to a half-dozen outlet malls around the Chicago area where there used to be one. Part of the appeal of “destination shopping” will be lost of these malls become too commonplace.

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