Brick-and-Mortar Retail: A Surprising Resurgence
It wasn’t too long ago when experts were making grim predictions about the demise of brick-and-mortar retail stores. With the rise of e-commerce giants like Amazon (AMZN) and the convenience of shopping online, it seemed that traditional retailers were doomed. However, recent financial results from Tanger Factory Outlet Centers (SKT) suggest that this may not be the case.
Tanger Factory Outlet Centers’ Strong Performance
In a recent video analysis, longtime Fool.com contributors Matt Frankel, CFP®, and Tyler Crowe took a closer look at Tanger Factory Outlet Centers’ latest financial results. The company reported a 6.7% increase in revenue for the third quarter of 2021, reaching $134.2 million. This growth was driven by a 3.2% increase in comparable property revenue and a 4.1% increase in occupancy.
Factors Contributing to Brick-and-Mortar Retail’s Resurgence
There are several reasons why brick-and-mortar retail may be making a comeback. One factor is the shift towards experiential retail, where shoppers are looking for more than just a transaction. They want an experience, and brick-and-mortar stores can offer that in ways that online shopping cannot. Another factor is the continued growth of e-commerce, which has led to increased competition and a greater need for differentiation. Brick-and-mortar stores that can offer unique products, personalized service, and a memorable shopping experience are likely to thrive.
Impact on Consumers
For consumers, the resurgence of brick-and-mortar retail means more options and greater convenience. While online shopping will continue to be a popular choice for many, there will always be a place for physical stores. For those who prefer to try before they buy, or who want to avoid the hassle of shipping, brick-and-mortar stores will remain an essential part of the retail landscape.
Impact on the World
The resurgence of brick-and-mortar retail will also have a significant impact on the world at large. It will create jobs and stimulate economic growth, particularly in areas where traditional retail is a major employer. It will also help to reduce the environmental impact of online shopping, which contributes to a significant amount of carbon emissions.
Conclusion
The death of brick-and-mortar retail may have been prematurely declared. Companies like Tanger Factory Outlet Centers are demonstrating that there is still a strong demand for physical stores, particularly those that offer unique products, personalized service, and a memorable shopping experience. For consumers, this means more options and greater convenience. For the world, it means jobs, economic growth, and a reduced environmental impact. The future of retail is not one-size-fits-all, but rather a combination of physical and digital experiences that cater to the evolving needs and preferences of shoppers.
- Brick-and-mortar retail is making a comeback
- Tanger Factory Outlet Centers reported strong financial results
- Experiential retail and differentiation are key factors
- Consumers benefit from more options and convenience
- The world benefits from jobs, economic growth, and reduced carbon emissions
