Off-Price Shopping Centers are changing to Value Centers
see a major change in factory outlet centers. Many of these off-price shopping centers throughout the United States, which are popular with bargain hunting shoppers, now have stores that sell the same merchandise sold in regional malls or Main Street. This marks a change in strategy for shopping center operators like Taubman Centers, Tanger Factory Outlet Centers and Simon Group. During the recent downturn in business, it was outlet centers that continued to see good customer traffic.
Manufacturers and retailers have taken advantage of the customer acceptance and strong traffic in off-price malls by making their products available. Saks 5^th Avenue’s Off Fifth store focuses on designer clothing. It sells about 10% marked down fashion merchandise from full line stores, 25% is private label and the rest is specially bought merchandise at regular prices. Carter’s, the children’s clothing manufacturer, sells its products in all locations at the same price, and The Loft, which was originally only in off-price centers, is today Ann Taylor’s main calling card throughout the United States.  Today there are 189 outlet centers in the United States. In the future we should call these off-price shopping centers “Value Centers.” Their low-price appeal is quite distinct from the traditional regional shopping malls and the life-style centers whose focus is to have more restaurants than shops.