
In less than two months, the region's outlet shoppers may find themselves in the midst of a tug of retail war between two centers along Interstate 79 promising deals on brand name goods.
The new Tanger Outlet Center, a 370,000-square-foot Washington County project that at the moment is better suited for work boots than fashionable footwear, is set to open in South Strabane, south of Pittsburgh, at the end of next month. Billboards are up, retailers are working on their stores and former Steelers running back Jerome Bettis is scheduled to join the party.
Meanwhile, Prime Outlets at Grove City, a 532,000-square-foot Mercer County center that's been pulling Pittsburghers north for more than a decade, reports sales are up. New stores include Juicy Couture and Oakley Vault. Later this month, celebrity stylist Mark-Alan Harmon will offer a little timely advice on fall fashion essentials.
Even without competition along the interstate, high gas prices would suggest this isn't the best time to be operating a shopping center some distance away from major residential areas. Yet officials at the two outlets profess not to be overly concerned by gasoline prices.
"We just haven't really heard that issue [among shoppers]," said Michele Czerwinski, marketing director for the Grove City outlet mall. Carpooling and group shopping always have been popular, she said. Meanwhile, Tanger has been running a promotion this summer rewarding visitors to its centers around the country for carpooling.
Outlet malls owned by the nation's largest operators boast strong occupancy rates as manufacturers look for places to move their wares, said Steve Tanger, president and chief operating officer of the Greensboro, N.C., outlet operator. On the consumer side, he said, "In good times, people like a bargain. In not-so-good times, they need a bargain."
There were 217 U.S. outlet centers covering almost 57 million square feet of retail space as of April, according to Value Retail News, an industry publication. The industry could add another 15 million square feet by 2010. Mr. Tanger makes the case that there's plenty of room to grow, since the current level represents less than the total retail space in Chicago.
Still, the industry hasn't been untouched by economic issues. The struggling housing sector has hurt some home decorating and home furnishing stores, including Bombay Co. and WestPoint Stevens. And late last month, the operator of Geoffrey Beene outlet stores announced plans to close or convert sites.
On the upside, the Ann Taylor chain announced plans to add outlet sites.
Prime Outlet at Grove City, long ranked as one of the nation's top outlet centers by trade magazine Value Retail News, has about 140 stores and draws 5.2 million visitors annually, said Ms. Czerwinski. Shoppers from Ohio, New York and Canada are drawn to Pennsylvania, in part, because there's no sales tax on clothes. The strength of the Canadian dollar hasn't hurt nor has the universities nearby, she said.
The new Tanger center also may get mileage out of the sales tax situation, as it sits in the southwest corner of Pennsylvania not far from West Virginia and Ohio. It also is close to the Meadows harness racing track and the new casino. A Bass Pro outdoor store may build next door. Officials estimate the outlet center will draw 4.5 million visitors annually.
Already bus groups are booking visits online, including a family reunion group coming from Bronx, N.Y., in September, according to Frank N. Salucci, general manager of the new outlet center.
"It's in a great location," said Mr. Tanger, who isn't shy about pointing out his company's new shopping center will be closer to Pittsburgh than the more established rival center. Ms. Czerwinski took the position that the new outlet competition demonstrates the strength of the economy in Western Pennsylvania.
A quick tour of the new Tanger center recently found plenty of dust and mess as hundreds of construction workers hurry to pour sidewalks and paint walls.
Mr. Salucci and Jennifer Benchich, assistant general manager, carried diagrams of the store layout inside their hard hats because it was still difficult to tell by looking at mud-splattered windows in empty spaces which will hold Coach and Tommy Hilfiger, Nike and Eddie Bauer and Banana Republic. A job fair next week should start identifying employees for the 70-plus stores.
Tanger found enough demand for retail space in the center that the original plans to open with 308,000 square feet were expanded to include another 60,000 square feet. Eventually, the center could include 500,000 square feet of stores.
When the construction wraps up, outlet officials believe that here will be plenty of work to do marketing the center to the region. An ad campaign will include radio, magazines, direct mail and newspapers.