Tanger CEO Steven Yaffe highlighted strong tenant sales growth and increased customer visits driven by strategic enhancements and outlet value, expressing optimism for the holiday season despite economic challenges. He also discussed Tanger’s use of AI to personalize marketing and improve customer service efficiency, with plans to further integrate AI technologies moving forward.
Tanger CEO Steven Yaffe shared insights on the current retail environment, highlighting resilient tenant sales with a 6% increase and strong customer spending despite recent reports of significant retail job losses. He noted that retailers continue to stock stores heavily, especially in preparation for key shopping seasons like back-to-school, indicating confidence in consumer demand. While tariffs had impacted pricing last year, the market has since adjusted, and consumers still perceive value in outlet shopping despite some price resets.
Yaffe addressed common concerns about consumer behavior amid economic pressures such as rising inflation, credit card delinquencies, and declining savings rates. Contrary to some narratives, Tanger’s outlets are seeing more frequent visits rather than seasonal or infrequent trips. This shift is attributed to demographic changes and strategic remerchandising efforts that include adding food, beverage, and entertainment options to enhance the shopping experience and encourage repeat visits.
Looking ahead to the holiday season, Yaffe expressed optimism, particularly for the outlet channel, which offers shoppers access to top American brands at competitive prices. He emphasized that despite macroeconomic headwinds, the value proposition of outlets is likely to attract significant traffic as consumers seek to maximize their holiday spending. Retailers are expected to respond with better deals and promotions to drive customer engagement and conversion.
On the technology front, Tanger is leveraging artificial intelligence (AI) to optimize its marketing and customer service operations. Yaffe clarified that while Tanger is not an AI company, it uses AI tools to personalize marketing communications, improving customer engagement through targeted SMS and email campaigns. This approach helps increase message open rates and rewards loyal customers by delivering relevant brand offers, enhancing overall marketing effectiveness.
Finally, Tanger has implemented AI-driven customer service solutions, such as chatbots, to handle over half of customer interactions efficiently. This allows human agents to focus on more complex inquiries, improving service quality and responsiveness. Yaffe sees this as just the beginning of deeper AI integration, with plans to expand AI’s role in enhancing customer interactions and operational efficiency in the future.