Steven B. Tanger, Executive Chair, Tanger, at the NYSE, May 10, 2023.
Source: NYSE
Tanger CEO Stephen Yalof said the store operator saw traffic increase in June and July due to international and domestic tourism tied to the World Cup.
“We knew when you get these new visitors that come for a huge magnet event like World Cup, you’ve got one opportunity to introduce them to your brand, and then hopefully they become a great ambassador for the brand if they have a great experience,” Yalof told CNBC on Wednesday.
The company, which has shopping centers in eight of the 11 host cities for the tournament, said it also saw sales increase and its athletic brands perform strongly amid a boom in excitement and business around the World Cup.
“Traffic drives sales. Traffic and sales always move together,” Yalof said. “For the year, we’re up about 5% sales-wise, which is pretty substantial.”
Yalof said the company saw World Cup tourists looking for a “real American experience,” like eating at a Chick-Fil-A or listening to American music, noting that many of those options are located within the four walls of a Tanger center or next to one.
“What we add to the mix is that value shopping experience, particularly in our outlet centers, which give these customers the opportunity to shop American brands like Polo and Michael Kors and Kate Spade and Coach and Nike, and buy that product at the best possible price,” he added.
Yalof said the company was prepared to take the most advantage of summer traffic from the World Cup to build “long-term customer loyalty” for its products and brands.
He said the company also saw more domestic traffic, as more Americans choose to travel within the country this year due to rising oil prices and the current geopolitical macroenvironment.
Because Tanger centers include retail, food and beverage, and entertainment, Yalof said the company saw customers come to its stores for one experience and stay for others.
“That’s what’s going to keep us and make us top of mind when these people come back or when they go and they tell their friends about the wonderful experience they had when they came and visited,” Yalof said.
Tanger also reported strong second-quarter results on Tuesday afternoon, citing strength in “enhanced marketing and traffic-driving initiatives across our portfolio.”
On a call with analysts, Yalof added that the strength in the current movie business and box office has also helped.
“People are coming early to enjoy the shopping, staying late and enjoying the dining,” Yalof said. “And that flywheel that we’ve created and the new merchandising mix has really been a great customer draw.”
