While a tight economy might cause most households to rein in the spending overall this holiday season, consumers typically adapt and get creative to make the most of their holiday budgets. The dramatic shift this year is where shoppers will spend their money, and according to research, it will be in discount stores and outlet centers. That is the emerging strategy that Americans will employ to keep their holiday traditions alive.
Spending during the holiday season is expected to be about $1,154 per household, on average, according to a survey by the International Council of Shopping Centers (ICSC) and Goldman Sachs. And according to a study by America’s Research Group, a larger percentage of consumers are planning to shop at discount stores this season vs. last season.
While many indoor shopping centers traditionally offer large-budget Santa displays in their center courts to lure families, their stores traditionally offer higher retail prices to cover the overhead. Outlet centers run leaner operations, focusing on the bottom line price points at the register.
“In good times people love a bargain, and in bad times people need a bargain,” said Amy Norgate, general manager of Tanger Outlet Center in Rehoboth Beach. “It’s no coincidence that outlet centers first emerged and thrived during the early 1980s, when our nation’s economy was challenged, and American households were looking for more creative ways to raise a family on a budget. Today, outlet centers still provide that quality and value.”
Not surprisingly, many consumers will be turning to outlet centers and value-priced stores to make their dollars stretch this season. At the Tanger Outlet Center in Rehoboth Beach, 130 outlet stores will be opening at midnight on Thanksgiving night, to kick off what industry observers believe will be a healthy holiday shopping season for value-priced operators.
One promising indicator of good, if not better, performance than last year is the number of motorcoach tour group reservations for Thanksgiving weekend at Tanger Outlets, traditionally that center’s most popular weekend for buses as well as mainstream customers. “Outlet shoppers are smart and know that their dollars will go further at an outlet center vs. a regular mall, or even online shopping sites whose prices normally trend higher to offset the convenience and shipping costs,” said Norgate.
“Tanger Outlets’ steady number of bus reservations this season, coupled with an occupancy rate of 100 percent, are indicators of a good holiday season ahead.”
source: capegazette.com