Dive Brief:
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Shopping center operator Tanger will add five Sephora stores to its centers this year. Each location will average about 5,000 square feet, per a company press release.
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Sephora stores will open in Tanger centers in Charleston, South Carolina; Deer Park, New York; National Harbor, Maryland; Palm Beach, Florida; and in the Phoenix area.
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They join an existing Sephora at Bridge Street Town Centre, a premium open-air center in Huntsville, Alabama, that Tanger acquired in late 2023.
Dive Insight:
Tanger made its name in the outlet-center business, with a portfolio that now includes 38 outlet centers and an open-air lifestyle center in 20 U.S. states and Canada.
More recently, however, in response to consumer demand, the company is shaking things up. In fact, in November, the company officially changed its name from “Tanger Factory Outlet Centers” to “Tanger.”
“Tanger is always listening and responding to what our shoppers want and continually evolving what an outlet center experience can be. Over the last several years we have significantly diversified our portfolio to include elevated food and beverage options, entertainment, direct to consumer brands, and full priced retailers,” Tanger CEO Stephen Yalof said by email.
The addition of a retailer like Sephora into that mix is key to this strategy.
“As the largest prestige beauty retailer in the world it will attract an aspirational customer that is looking for the brands they love,” Yalof said.
In April, Bank of America Global Research analysts led by Jeffrey Spector hailed Tanger’s “ability to execute on external growth opportunities and land densification efforts, successful efforts to improve assets, and strong balance sheet with minimal refinancing risk.”
They also said they agree with Tanger’s “key initiative to upgrade its tenant mix,” but warned it would take time and capital.
