Stephen Yalof, CEO and President of Tanger joins the Remarkable Retail podcast to discuss the evolution of outlet centers and value retail more broadly. Yaloff shares insights from his extensive retail career at Gap, Ralph Lauren, and Simon, and in his role leading Tanger a leading shopping center operator with 37 outlet centers and an expanding lifestyle portfolio. The conversation explores how outlet retail has transformed from pure manufacturer inventory clearance to a customer-focused approach offering branded experiences and value to aspirational shoppers.
In this episode of the Remarkable Retail podcast, hosts Michael LeBlanc and Steve Dennis begin with a news segment covering recent market developments, notably the "tariff turmoil" between the US and China. They discuss how the US has partially de-escalated its stance, with tariffs dropping from a proposed 145% to 30%, creating a 90-day window for retailers to import products. However, they emphasize that smaller retailers remain disproportionately affected due to limited resources compared to giants like Home Depot.
The hosts also cover recent retail earnings reports, including Walmart's strong comp store sales growth despite withdrawing Q2 guidance, and their strategic pricing approach to tariff impacts. Other earnings news included On Running's impressive 40% sales growth, while American Eagle, JC Penney, and Burberry reported significant losses. Additional news touched on refinancing challenges at Kohl's, potential bankruptcy concerns at Saks, and Dick's Sporting Goods' surprising acquisition of Foot Locker.
The featured interview with Stephen Yalof, CEO and President of Tanger, explores his extensive career spanning retail real estate, including roles at New Plan Realty Trust, Gap, Ralph Lauren, and Simon before joining Tanger in 2020 – humorously noting he arrived when "every one of their 3,000 stores was closed" due to COVID.
Yalof provides a fascinating historical perspective on outlet centers, explaining how they evolved from manufacturers' sales of returned items and factory seconds to a strategic retail channel. He details how the Tanger family themselves were shirt manufacturers who realized they were "selling more stuff out the back door than out the front door" before creating the first outlet center in Burlington, North Carolina.
The conversation explores how vertical retailers like Gap transformed the model, creating consolidation stores for excess inventory before establishing dedicated outlet locations. This evolution progressed from pure excess inventory management to serving aspirational customers who understand brands but can't afford full price – what Yalof describes as bringing customers "into your ecosystem."
In response to competition from online and fast-fashion retailers, Yalof explains Tanger's strategy shift from purely "power shopping" to full-service experiences with improved food, entertainment, and amenities. He compares this to how stadiums have evolved despite at-home viewing advances, stating, "We're the general merchandise managers of our shopping centers... it's about picking the right uses, right experiences, the right amenities."
The interview concludes with insights into Tanger's digital engagement strategies, including how they leverage customer data to create targeted marketing campaigns and provide stackable discounts through retailer partnerships, guided by their vision of "using customer insight to inform the future of shopping."