How Tanger Factory Outlet Centers tackles e-commerce

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Charlotte Premium Outlets, a 50-50 joint venture between Indianapolis-based Simon Property Group Inc. (NYSE:SPG) and Greensboro-based Tanger Factory Outlet Centers Inc. (NYSE:SKT), recently opened in Charlotte.

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Catherine Carlock

Reporter- Triad Business Journal

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As the holiday shopping season approaches, retailers across the globe are pushing forward e-commerce efforts. For example, Ralph Lauren Corp. (NYSE: SKT) — the Triad's third-largest manufacturer behind Hanesbrands and Reynolds American — on Wednesday reported double-digit growth for its e-commerce business, despite a decline in overall earnings.

But what does that continuing e-commerce boost mean for bricks-and-mortar retailers such as Greensboro-based real estate investment trust Tanger Factory Outlet Centers Inc. (NYSE: SKT) that rely on in-store customer traffic to generate revenue?

Tanger CEO Steven B. Tanger tackled that question during the REIT's third-quarter conference call Wednesday morning.

"We've embraced the Internet," he said. "(Online) retailing is essentially a new catalog."

Catalog sales have historically represented about 6 percent of overall retail sales, Tanger said. But now, e-commerce sales are pushing forward to fill that space.

"Combined, catalog sales are way off, and Internet sales are way up," Tanger said. "As far as we're concerned, traffic is doing well. Sales are up. We've been competing with ecommerce for the past 15, 20 years, and tenant sales ebb and flow."

Tanger said his company has a robust social media program to draw in some of that online business. Tanger Factory Outlet Centers can provide special deals through those social media venues, including Twitter and Facebook.

"We have been able to work consistently through the Tanger app on your mobile phone," Tanger said. "You can bring the phone in and show the app and get discounts from our best merchants."

Catherine Carlock covers commercial and residential real estate, construction, economic development and retailing and restaurants. Contact her at 336-370-2918.