Stephen Yalof, president & CEO of Tanger Outlets, joined Cheddar News to discuss consumer spending trends ahead of the holiday season.

Stephen Yalof, president &amp; CEO of Tanger Outlets, joined Cheddar News to discuss consumer spending trends ahead of the holiday season.

Tanger Outlets CEO Discusses Consumer Spending Ahead of Holidays

but it is mid november, meaning that holiday shopping season is just around the corner. Maybe you have already started your holiday shopping, but with rising prices for everything like gas, food and other basic necessities, emptying customers wallets prediction for this season of shopping this holiday are a bit mixed. So one company that has its finger on the pulse of consumer spending is Tanger outlets, A leading owner and operator of outlet centers in the U. S. And Canada. And joining me now is steven, yell off president and ceo of Tanger outlets, Stephen, thanks so much for coming on. I know your company recently posting some robust third quarter results and in fact raising your full year guidance, what can you tell us about the state of the consumer and spending at your locations? Well, what's interesting is this year is, is so much different than last year. I mean, last year, this time the narrative going into holiday shopping season was if you see it buy it because of the supply chain issues and um you know, the very rapidly raising of retail, uh retail retail's meaning the pricing was was relatively high last year. So what we're finding this year, particularly in some of the more moderate brands, is there's been some price deflation, even advance of today's news about inflation perhaps cooling? We've seen prices start to deflate in some of our channels across the Tanger outlets as prices down, I think that's welcome news to many consumers, Stephen as we see prices for many items out. Their basic necessities certainly on the rise. What is your expectation this holiday season? We're optimistic about sales going into the holiday season. And remember, you know, as an outlet company, we uh mostly retailers that sell goods in our shopping centers are selling them at everyday value pricing. Very important component part of our business so that our customers know when they shop in one of our Tanger outlets that they're going to get everyday value and that's pretty important for them. More importantly, is that even some of the more aspirational brands that sell at a much higher price point and might not be breaking their prices as some of the moderate brands that I shared earlier were there's still everyday value associated with those brands as well. So we get a whole band, a great band with a retail customer that shops in our shopping centers from the lower price points to a much higher price point. So we expect to see lots of people come through the doors starting now as the holiday season starts, we're very close to lighting the christmas trees and turning on our holiday festivities in our shopping centers and we're excited to welcome customers who will come and do their holiday shopping with us a tanker. Are there big holiday shopping days Stephen is black friday a big thing at your outlets and when is the best time for consumers to shop? Well I think you know, we're everyday value pricing and we see a lot of people starting to get their shopping in now. I mean especially if you want to get the products that you want, but for us yet black friday is always a big day and we'll continue to be, you know what, we've we've changed our shopping cadence for the thanksgiving holiday season. Thanksgiving used to be a day where the lights were on in a lot of shopping centers and I'm pleased that they're not on this year. I think it's a day for family and we're excited that both our shoppers and those who work in our shopping centers will be able to be with their families on that day. But we're gonna start bright and early on friday morning at six a.m. So that's when that's when the shopping will begin and we're thrilled to welcome our customers on that day with a lot of holiday cheer as well as great value. In addition to the values that you get every day at our centers. You know, I'm interested with your unique insight whether or not you do expect a recession on the horizon based on cust Shopping habits, trends, traffic that you see at the stores as well as ticket prices and those check out prices, those basket sizes from actual customers because they had a guest on earlier, he thought it was a 5050% chance of a recession, what's your take right now. You know, I think that there's probably a chance that there will be one, I'm anticipating a soft landing, but you know, what's interesting about our shopping centers is regardless of the economic headwind, a value environment such as ours is always gonna be a great place to shop. So as it proved to be a great place to shop as prices started to accelerate the early days of our inflationary period. Now with the cooling off, I think that we'll see a stimulation with retailer with choppers coming back to shop our centers and more importantly, um you know, in recess Times, it's a great place for a customer to come and find great values, especially against the brands that they're looking for in the brands. They love our expansion plans on the Horizon Steven. I think you have just under about 40 locations across the country and in Canada as well. So are you planning to open new locations or are you doubling down on the current stock? I I think both, you know, there's a lot of organic growth that we can see in our existing portfolio. We're constantly adding new brands and flowing newness into our shopping centers. We recently added a number of direct to consumer brands that two or three years ago didn't even have bricks and mortar stores and now that they've had their, their opportunity to open up their full price bricks and mortar or finding the outlet channel is a great place for them to clear access inventory in an environment where they don't dilute their brand equity And I think that's a really important part of what we deliver as far as new growth for. For us, we're currently under construction for a new shopping center in Nashville Tennessee that will open in the fall of next year and we recently took over uh leasing management of a new shop or an existing shopping center in Palm Beach that will now brand Tanger outlets. Palm Beach, so we'll bring all of that suite of services that both our shoppers as well as our retailers have learned to expect when they come and shop in the Tanger outlet center. Alright, steven, Well, I hope you your workers and your shoppers have a happy holiday season. That's Stephen Yalof president and Ceo of Tanger outlets.