Tanger Inc.

Overview

"How the company got here" "Tanger Inc. was founded in 1981 by Stanley Tanger, who was in the manufacturing business and saw an opportunity to sell excess inventory directly to consumers. He opened the first outlet center in Burlington, North Carolina, which was a novel concept at the time. The company went public in 1993, becoming the first outlet-only Real Estate Investment Trust (REIT) – a company that owns, operates, or finances income-generating real estate – to be listed on the New York Stock Exchange. Over the years, Tanger has expanded its portfolio, acquired and sold various shopping centers, and evolved its strategy to include not just outlet centers but also open-air lifestyle centers. This evolution reflects a response to changing consumer preferences and the broader retail landscape." "What it actually does" "Tanger Inc. is a real estate company that owns and operates shopping centers, primarily open-air ones. Instead of selling products directly, Tanger makes money by leasing store spaces to various brand-name companies. These brands use Tanger's centers to sell their merchandise, often at discounted prices in outlet centers or at full price in lifestyle centers. Tanger's portfolio includes a significant number of outlet centers, as well as a growing number of lifestyle centers, located in both tourist destinations and vibrant local markets across the United States and Canada." "Outlet Centers" "Tanger's core business has historically been its outlet centers. These are shopping destinations where well-known brands offer their products, often at reduced prices. This is typically done to sell excess inventory, past-season items, or products made specifically for the outlet market. For shoppers, it's an opportunity to buy branded goods at a discount. Tanger leases space to these brands, and in return, collects rent, which is the primary way the company makes money from this business line." "Open-Air Lifestyle Centers" "In recent years, Tanger has expanded into operating open-air lifestyle centers. These centers offer a broader mix of retailers, including full-price stores, restaurants, and service providers, in an open-air setting. While outlet centers focus on discounted merchandise, lifestyle centers aim to provide a more diverse shopping and entertainment experience for local communities and visitors. Tanger generates revenue from these centers by leasing space to a variety of tenants, similar to its outlet center model."