THOSE ARE THE VERY LATEST
DEVELOPMENTS.
MEANWHILE, IT IS PRESIDENT’S DAY
AND THE SALES AS WE KNOW ARE
ALWAYS PRETTY BIG FROM RETAILERS
LIKE TARGET, BEST BUY, AND
ACADEMY ALL ROLLING OUT ONLINE
FROM ELECTRONICS TO HOME
FURNITURE, CLOTHING AND OH, YES
SPORTING GOODS AND TANGER OUTLET
S WHERE THERE’S
ALWAYS A SALE REPORTED A FOURTH
QUARTER EARNINGS BEAT WITH FUNDS
FROM OPERATIONS OF 49.7 MILLION
OR $0.45 A SHARE, THE OUTLET
MALL GIANT WILL HAVE 36
LOCATIONS IN 20 U.S. STATES,
ALSO REPORTED THAT TEN
ENTERTAINMENT SALES HAVE EXCEED
ED PRE PANDEMIC LEVELS BY
NEARLY 18% THAT IS REMARKABLE.
HERE IN A FOX BUSINESS EXCLUSIVE
, IS TANGER OUTLETS
PRESIDENT AND CEO STEVEN YELLIF.
THE FIRST THING TO SAY IS
CONGRATULATIONS.
HOW DO YOU ACCOUNT FOR THOSE
SUCH STRONG NUMBERS IN
THE FOURTH QUARTER WHEN WE SAW
THE OMICRON VARIANT BASICALLY AT
ITS PEAK, IT DIDN’T SEEM TO SLOW
DOWN THE SHOPPERS.
>> FIRST OF ALL THANKS FOR
HAVING ME, ASHLEY.
ASHLEY: SURE.
>> I GUESS WE CAN ATTRIBUTE IT
TO THE FACT THAT WE’RE OPEN AIR,
OUR CUSTOMERS LIKE TO SHOP
OUTDOORS, AND LIKE KENNY SAID
BEFORE, WHEN BLOOMINGDALE’S IS
ON SALE, THE CUSTOMERS ARE GOING
TO RUN TO THE STORES.
WELL, WE’RE ON SALE EVERY SINGLE
DAY.
500 BRANDS, 2,500 STORES ACROSS
OUR 36 SHOPPING CENTERS IN 20
STATES.
ASHLEY: WELL LET ME TALK ABOUT
SOME OF THE COMMON COMPLAINTS
WE’VE HAD FROM RETAILERS, A
LABOR SHORTAGE, SUPPLY CHAIN
ISSUES, LOW INVENTORY, AND ALL
OF THIS CAUSING HIGHER PRICES.
HAVE YOU BEEN FORCED OR AS AN
OPERATOR OF THESE MALLS,
HAVE YOU NOTICED THE IMPACT
THOSE ISSUES HAVE HAD ON YOUR
TENANTS?
>> YOU KNOW, LESS STRESS ON OUR
TENANTS IN THE FOURTH QUARTER
THAN WE HAD ANTICIPATED, SO WE
WERE, AS YOU CAN SEE FROM OUR
SALES PRODUCTIVITY VERY PLEASANT
LY SURPRISED WITH HOW WE
ENDED THE FOURTH QUARTER AND IN
SOME OF OUR GEOGRAPHIES, WE GAVE
AN HOUR BACK FROM TYPICAL
SHOPPING HOURS, WE DID SO
BECAUSE OF SOME OF OUR RETAILER
STAFFING NEEDS, BUT THEY STILL
HIT ALL-TIME HIGHS, AND WE
REPORTED 92 OF THE TOP 100
RETAILERS IN OUR PORTFOLIO,
EXPERIENCED POSITIVE COMPS FOR
THE ROLLING 12 MONTHS OF
SALES, ENDING THE YEAR.
ASHLEY: THAT’S AMAZING, AND YOU
KNOW, WHAT DOES THIS SAY THAT WE
KNOW THE ONLINE SHOPPING BECAME
LIKE THE THING TO DO, OF COURSE
IN THE HEIGHT OF THE PANDEMIC
BUT I FIND IT INTERESTING,
BOSSIER READ REPORTS WHAT PEOPLE
ARE GOING TO CONTINUE TO USE
ONLINE, ESPECIALLY THOSE WHO
NEVER DID BEFORE BUT WERE FORCED
INTO IT, BUT THIS SHOWS THAT
PEOPLE ACTUALLY DO WANT TO GET
OUT AS YOU SAY IN THE OPEN
AIR, AND THE PENT-UP DEMAND IS
STILL THERE FOR IN-PERSON
SHOPPING.
>> WELL A LOT OF THE PRODUCTS
THAT WE SELL IN OUR SHOPPING
CENTERS IS FOOTWEAR AND APPAREL
AND THOSE ARE THINGS PEOPLE WANT
TO GO OUT AND TEMPERATURE AND
FEEL, TRY ON BEFORE THEY
ACTUALLY MAKE A PURCHASE.
WHAT’S INTERESTING IS WE’RE
FINDING A LOT OF PEOPLE SPEND
TIME ONLINE DOING WINDOW
SHOPPING ALSO, AND THAT’S AN
IMPORTANT PART OF OUR
BUSINESS NOW, SO WE’RE TAKING
OUR WEB, OUR APP, ALL OF THE
DIFFERENT TOUCHPOINTS THAT
THE CUSTOMER GETS TO KNOW TANGER
OUTLETS BEFORE THEY COME
AND VISIT US IN THE SHOPPING
CENTER WHERE THEY CAN SEE THE
PRODUCT, THEY CAN SEE
WHAT’S GOING TO BE IN THE
STORES, WE COMMUNICATE WITH
THEM AND SEND THEM ADDITIONAL
DISCOUNTS WHEN AVAILABLE, AND
LET THEM KNOW THE AMENITIES AND
THE PROGRAMMING THAT’S HAPPENING
IN ANY ONE OF OUR SHOPPING
CENTERS ON ANY GIVEN DAY SO THE
COMMUNICATION IS CRITICAL.
WE WANT TO MEET THE CUSTOMER
WHERE THEY ARE, BUT WE ALSO WANT
TO DRIVE THEM INTO THE CENTERS
WHERE THEY CAN ACTUALLY PURCHASE
AND TRANSACT.
ASHLEY: DO YOU WORRY ABOUT THE
HIGH INFLATION RATES, 7.5%
THAT THE TRIP TO THE MALL TO TAN
GER MAY TAKE A BACK SEAT
BECAUSE PEOPLE ARE PAYING SO
MUCH MORE FOR BASIC NECESSITIES?
>> YEAH, WELL I THINK THAT
INFLATION DEFINITELY VALUES OUR
CHANNEL.
WE’RE ON SALE EVERYDAY, SO
EVERYBODIES FAVORITE PRODUCTS,
THE LOGOS THEY WANT, THE BRANDS
THEY WANT, ON SALE, EVERYDAY.
YOU DON’T HAVE TO WAIT FOR THE
STORES TO GO ON SALE.
THAT’S OUR MODEL.
THAT’S OUR FORMAT.
ASHLEY: I READ A NUMBER HERE,
IT’S REMARKABLE.
YOU SAID THAT THE AVERAGE TENANT
SALES PRODUCTIVITY I’M ASSUMING
THIS IS IN THE FOURTH QUARTER
CAME IN AT $468 PER SQUARE FOOT.
THAT IS THE HIGHEST OF ALL-TIME.
HOW DO YOU BEAT THAT?
>> YOU KEEP GRINDING.
YOU KNOW, I THINK WE OWE TO IT
OUR RETAILER PARTNERS TO BRING
MORE TRAFFIC AND MORE CUSTOMERS
TO OUR SHOPPING CENTERS SO WHAT
WE’RE DOING IS CREATING MORE
AMENITIES, BETTER FOOD AND
BEVERAGE, INTERESTING NEW STORES
, ENTERTAINMENT USES AND
WE THINK ALL OF THAT, THAT MIX
AND THAT MERCHANDISING IN OUR
SHOPPING CENTERS WILL DRIVE A
NEW CUSTOMER TO OUR SHOPPING
CENTERS, GET THEM TO STAY LONGER
WHEN THEY’RE THERE AND
ULTIMATELY A LONGER STAY WILL
REVEAL ITSELF IN THE FORM OF A
BIGGER SPEND.
ASHLEY: YEAH, AND IT’S ALL ABOUT
THE EXPERIENCE.
STEPHEN YALOF, THE PRESIDENT AND
CEO OF TANGER OUTLETS THANKS FOR