bagging the bargains

WHILE RETAILERS ACROSS THE country are bracing for a dismal holiday season, one sector of the market is predicting a banner year. The struggling economy continues to lure budget-conscious shoppers to outlet malls, enticing them with savings up to 75 percent off retail.

“Outlet centers throughout the country do well to start with,” says Jeff Staner, general manager for Miromar Outlets in Estero. “Whenever the economy is weaker, they do better. People are more conscious of the dollar. They want more bang for their buck.”

From Ellenton to Fort Myers, Estero and Sunrise, outlet malls in South Florida are reporting increased sales and traffic, fueled by thrifty shoppers who want designer labels at deep discounts.

The evolving shopper profile

The recent trend to more luxury retailers has expanded the outlet shopper demographic.

Gone are the early days of irregular cast-offs and second-hand merchandise. In fact, many outlet stores now offer first-quality merchandise and items that still bear the price tag from their full-line counterparts.

“Outlet shopping isn’t what some people have in mind — mismatched, damaged or last year’s merchandise,” says Sarah Ozgun, marketing manager of Prime Outlets in Ellenton, just north of Sarasota. “It’s not that way anymore. Customers tell me all the time they find merchandise that’s $50 at the full-priced brand for $29.99 here. They may drive a little farther, but the savings are so much more.”

In Ellenton, Ms. Ozgun adds, leasing “has taken a more luxury shopping turn in the last few years. Since 2006 we’ve added new brands like Escada, Stuart Weitzman, Kate Spade and Lacoste.”

A 22,000-square-foot addition completed this fall at The Colonnade Outlets at Sawgrass Mills in Sunrise added Canali, the high-end Italian menswear line, as well as Tommy Bahama, Tumi and True Religion Brand Jeans to the mall’s designer lineup. Tag Heuer is expected to open in the next month or two, says Luanne Lenberg, the center’s vice president and general manager.

The Canali shop at Sawgrass is the company’s first U.S. outlet location, Ms. Lenberg says. “The fact that we were able to build this expansion this year and open new retailers in this kind of climate says a lot about our performance. We are essentially fully leased,” she adds. “We have retailers waiting to get in, and last year we had double-digit gains.”

Miromar draws shoppers from a 150- mile radius and frequently hosts motor coaches filled with visitors from Tampa, Sarasota and the east coast. In addition to an influx of German and U.K. shoppers in the past few months, Mr. Staner says, the outlet has also seen more French visitors in the last six to eight weeks. Why? “We really don’t know,” he confesses.

International attraction

European tourists and Canadians are taking advantage of favorable currency exchanges and stocking up on brands that retail for much more at home. Luxury brands and outlet mainstays like Nike, Ralph Lauren and Tommy Hilfiger resound well with foreign buyers.

“Our international visitors are primarily Canadians, Germans and British,” says Ellenton’s Ms. Ozgun. “What they buy depends on what’s hot in their country,” she says, adding that what’s hot somewhere else can often be bought for much less here. “A pair of jeans in the U.K. may cost $140, but they’ll get it for $40 here. They walk out with bags of merchandise. The manager at Converse tells me that 90 percent of their buyers are German shoppers.”

Sawgrass, North America’s largest outlet center with more than 400 stores and more than 2 million square feet of retail space, draws a large contingency of South American shoppers, many who buy suitcases (at outlet discount prices) to haul away their merchandise.

“They come here as a destination for shopping,” said Ms. Lenberg. “They’ll get on a plane and stay in a hotel, and I’ll see several with suitcases every day. The money they save pays for the plane ticket and hotel. We’ve been somewhat sheltered from a downturn in sales because of these international buyers.”

Extra savings and discounts deepen the impact for shoppers. “If you look at how much our stores have made this month versus the same month a year ago, many are beating or meeting their goals,” says Ms. Rybak. “They’re going through more merchandise because of the discounts. But that brings buyers back.”

The outlet outlook

Some stores are perennial outlet favorites: Bass, Coach Factory Store and Liz Claiborne, for example. Branded merchandise, the names most people know (think Tommy Hilfiger, Polo, Nautica and Ralph Lauren) sells “extremely well,” says Ms. Lenberg. “Our weak spot has probably been jewelry the past 12 months.”

Exclusivity is also an enticement. Miromar, which has morphed from 55 stores and nearly 186,500 square feet in 1998 to 140 stores and 605,537 square feet with the completion of phase six in May 2008, offers Southwest Florida’s only Neiman Marcus Last Call Clearance Center, Doncaster, Façonnable, Worth Collection, Columbia Sportswear Company and Restoration Hardware.

Sawgrass’ list of Florida-only outlet stores is also impressive; some, such as Féraud/Rösch and David Yurman, are the first in the U.S. Other recent additions include Judith Ripka, Armani Exchange and Salvatore Ferragamo Co. The mall’s anchors reflect the outlet versions of must-shop New York City retailers, including Barneys New York Outlet, Nordstrom Rack, Saks Fifth Avenue OFF 5th and Neiman Marcus Last Call.

Prime Outlets-Naples and Tanger, with 42 and 45 stores respectively, are boutique centers that appeal to passing motorists and local residents. Tanger has had the same square footage since it opened in 1993. Its location and lot prevent any expansions.

“At one time we thought size might be an issue with all the bigger malls coming in to Southwest Florida,” Ms. Rybak says. “But it’s actually helped us. Our buyers enjoy the intimate size of Tanger.”

Destination shopping

Larger centers like Miromar, which attracts about 8 million visitors annually, Prime Outlets-Ellenton and the granddaddy of them all, Sawgrass Mills, draw more destination shoppers — those who plan a day or an afternoon around a visit.

“The average shopper spends 90 minutes in a traditional mall,” says Michael Goodman, a spokesperson for Sawgrass Mills. “Sawgrass is four hours.”

Adding to the destination factor is the ability to take advantage of Florida sunlight and year-round good weather by offering an outdoor shopping experience. Grand fountains, koi ponds, courtyards and tropical landscaping enhance the shopping experience at Miromar, which also offers a large patio area overlooking a lake and the multicolored “Musical Waters” fountain. That lake also hosts weekly water-skiing demonstrations, and nearby restaurants take advantage of the view with alfresco dining areas.

Prime Outlets-Ellenton was one of the first shopping centers to introduce the “lifestyle center” concept when it opened in 1991 with 55 stores spanning 186,000 square feet. “We were one of the first in the outlet business to get away from the strip or horseshoe layout,” said Ms. Ozgun. “And we think that had a lot to do with the success of the center, where typical outlet stores average 3,500 to 4,000 square feet.”

One of the center’s original anchors, Coach Factory, has tripled its volume and is in the process of upsizing from 2,000 to 3,600 square feet. Nike and Brooks Brothers have also expanded, and the center now boasts 130 stores in 477,000 square feet.

Sawgrass Mills adopted the open-air style for The Colonnade Outlets, which opened in 2006, next to the main indoor mall. The Colonnade features most of the center’s designer stores and offers valet service.

More than shopping

Recognizing that even the most diehard shopper has to take a break sometime, many outlets offer options that have nothing to do with retail therapy. Miromar has several restaurants, including an outpost of Naples Flat Bread, which opened last week in the former Cosi location, and will welcome a local sports bar, yet unnamed, later this year. Diners will find a total of 18 food and beverage options, ranging from full-service restaurants with indoor and outdoor dining to fast-food kiosks. There’s also a covered play area for children.

In addition to the weekly water-skiing show and Friday night concerts, in November Miromar is offering children’s craft projects, a juried fine arts show and a baby boot camp for pregnant and post-natal moms.

Sawgrass Mills goes so far as to call itself an “outlet, value retail and entertainment center.” In addition to its stores, the mall has a 23-screen theater, the children’s theme park Wannado City and a The Billiards Club with 23 pool tables, a bar and food. It also has two major food courts and six full-service restaurants. Villagio, a Miami favorite, will open in The Colonnade later this year.

Shopping strategy

To get the most from your outlet experience, plan ahead. Many outlet stores offer additional discounts on the center’s Web site. You’ll also find maps — important for navigating Sawgrass’ overwhelming square footage — as well as store directories and even parking tips.

“I encourage shoppers to print a directory before they come to the property,” says Ms. Lenberg, who admits to getting lost in Sawgrass during her first visit. “If you want the luxury brands, you’ll find most of them in The Colonnade. And wear a comfortable pair of shoes.”

Prime Outlets’ new “Prime My Closet” marketing campaign, for its Ellenton and Naples locations, offers Internet visitors the chance to win $5,000 and receive a free coupon book and email blasts.

If you’re planning to brave the masses for midnight madness shopping on Black Friday, expect lines — and not just at the cash register. Events at Miromar and Ellenton have backed up I-75 for miles. “We had hundreds of thousands of hits every minute on the Web site for four days straight,” said Tanger’s Ms. Rybak. “Our claim to fame is bargains, and people will find them here.” ¦
.. if you go
>> 1. Miromar Outlets: 10801 Corkscrew Rd.,
Estero; 948-3766 or www.miromaroutlets.com
>> 2. Prime Outlets-Ellenton: 5461 Factory
Shops Blvd., Ellenton; (941) 729-8615 or www.
primeoutlets.com/Ellenton
>> 3. Prime Outlets-Naples: 6060 Collier
Blvd.; 775-8083 or www. primeoutlets.com/
Naples
>> 4. Sawgrass Mills, Sunrise: 12801 W.
Sunrise Blvd.; (954) 846-2350 or www.simon.
com.
>> 5. Tanger Outlets: 20350 Summerlin
Road, Fort Myers; 454-1974 or www.tangeroutlet.
com/fortmyers