Tanger Factory Outlet Centers, Inc. (SKT): Business Model Canvas

Key Partnerships

Tanger Factory Outlet Centers, Inc. (SKT) relies on various key partnerships to support its business model. These partnerships are crucial in enabling Tanger to provide a wide range of retail options to consumers in prime locations across the United States. The key partnerships include:

• Retail store partners: Tanger collaborates with a diverse range of retail store partners to offer a comprehensive shopping experience to customers. These partnerships help Tanger attract popular brands and ensure a variety of options for consumers.
• Real estate developers: Tanger works closely with real estate developers to identify and secure prime locations for its outlet centers. These partnerships are essential in acquiring land, designing the outlet centers, and ensuring that they are strategically located to attract shoppers.
• Brand collaborations: Tanger collaborates with brands to bring their products to its outlet centers. These collaborations help Tanger attract well-known brands, offering customers high-quality products at discounted prices.
• Local government for permits and regulations: Tanger partners with local government authorities to obtain permits and ensure compliance with regulations when developing new outlet centers. These partnerships are essential in navigating the regulatory landscape and securing the necessary approvals for construction.

Key Activities

Tanger Factory Outlet Centers, Inc. is involved in several key activities to ensure the success of its business model:

• Managing retail properties: SKT is responsible for overseeing the operations of all its retail properties, ensuring that they are well-maintained and meet the needs of both tenants and customers.
• Leasing store space: One of the primary activities of Tanger Factory Outlet Centers is leasing store space to retail tenants. This involves negotiating lease agreements, managing lease renewals, and ensuring that all tenants are in compliance with their lease terms.
• Property development: SKT is actively involved in developing new outlet centers and expanding existing properties. This includes identifying suitable locations for new developments, obtaining necessary permits and approvals, and overseeing the construction process.
• Maintenance and upgrades: Tanger Factory Outlet Centers places a strong emphasis on maintaining its properties to a high standard. This involves regular inspections, repairs, and upgrades to ensure that the outlet centers remain attractive and functional.
• Marketing and promotional activities: SKT engages in various marketing and promotional activities to drive traffic to its outlet centers. This includes advertising campaigns, events, and partnerships with retailers to attract customers and increase sales.

By focusing on these key activities, Tanger Factory Outlet Centers is able to effectively manage its retail properties and drive success in the competitive outlet center industry.

Key Resources

Tanger Factory Outlet Centers, Inc. (SKT) has a number of key resources that contribute to its success in the outlet shopping industry. These resources include:

• Tanger Factory Outlet Centers strategically selects locations for their outlet centers in high-traffic areas near major highways and tourist destinations. This ensures a steady flow of customers and high visibility for the brand.

• The company's management team brings years of experience in the retail and real estate industries, allowing them to make informed decisions and navigate challenges effectively.

• Tanger Factory Outlet Centers leases retail space to a variety of popular brands, providing customers with a wide selection of products. This diverse mix of stores attracts a broad range of shoppers.

• Tanger Factory Outlet Centers has developed strong relationships with well-known retail brands, allowing them to attract top tenants to their outlet centers. These partnerships also help the company secure exclusives and discounts for their customers.

Value Propositions

Tanger Factory Outlet Centers, Inc. (SKT) offers a unique value proposition to its customers by providing high-traffic outlet centers that feature a variety of premium brands at discounted prices. This allows shoppers to access high-quality products at lower prices, making it an attractive option for budget-conscious consumers. In addition to the discounted prices, Tanger Outlet Centers are strategically located in convenient shopping locations, making it easy for customers to access these centers and enjoy a day of shopping.

Another key value proposition of Tanger Outlet Centers is the family-friendly environment they offer. The centers are equipped with amenities such as playgrounds, food courts, and rest areas, making it a comfortable and enjoyable shopping experience for families with children. This creates a welcoming atmosphere that encourages repeat visits and customer loyalty. Overall, Tanger Outlet Centers provide a unique value proposition that combines convenience, affordability,

and a pleasant shopping experience for customers.

• High-traffic outlet centers
• Variety of premium brands at discounted prices
• Convenient shopping locations
• Family-friendly environment with amenities

Customer Relationships

Tanger Factory Outlet Centers, Inc. (SKT) places a high priority on maintaining strong customer relationships in order to drive repeat business and brand loyalty. The following strategies are implemented to foster positive interactions with customers:

• Customer service desks: Tanger Outlet Centers feature customer service desks where shoppers can seek assistance, inquire about promotions, or provide feedback on their shopping experience. This personal touch helps to create a welcoming and helpful environment for customers.
• Loyalty programs: Tanger offers a loyalty program that rewards frequent shoppers with discounts, special deals, and exclusive offers. By incentivizing repeat business, Tanger is able to cultivate a loyal customer base that returns to their outlets time and time again.
• Engaging shoppers through events and promotions: Tanger hosts various events and promotions throughout the year to keep shoppers engaged and excited about visiting their outlets. This includes seasonal sales, holiday events, and exclusive shopping weekends that drive foot traffic and encourage customer interaction.
• Feedback and response via social media: Tanger actively listens to customer feedback on social media platforms and responds in a timely and professional manner. This open line of communication allows Tanger to address customer concerns, improve service offerings, and demonstrate their commitment to customer satisfaction.

Channels

Tanger Factory Outlet Centers, Inc. utilizes a variety of channels to reach and engage with its customers. These channels are carefully selected to ensure maximum exposure and accessibility to the company's outlet centers and offerings.

Physical Outlet Centers

The primary channel through which Tanger Factory Outlet Centers, Inc. interacts with customers is through its physical outlet centers. These centers are strategically located in high-traffic areas to attract a large number of shoppers. By offering a wide range of designer and brand-name merchandise at discounted prices, the company is able to draw in a diverse customer base who are looking for quality products at affordable prices.

Company Website

In addition to its physical locations, Tanger Factory Outlet Centers, Inc. also maintains a company website. This website serves as an online platform where customers can learn more about the company, locate outlet centers near them, browse current promotions, and even sign up for the company's loyalty program. The website offers a convenient way for customers to access information about Tanger outlet centers from the comfort of their own homes.

Social Media Platforms

To further expand its reach and engage with customers, Tanger Factory Outlet Centers, Inc. is active on various social media platforms such as Facebook, Instagram, Twitter, and Pinterest. Through these platforms, the company can share updates on new store openings, promotions, and events happening at its outlet centers. Social media also provides a direct line of communication between the company and its customers, allowing for real-time interaction and feedback.

Email Newsletters

Another channel through which Tanger Factory Outlet Centers, Inc. communicates with its customers is through email newsletters. Customers who sign up to receive the company's newsletters are regularly updated on upcoming sales, special events, and exclusive offers. This personalized approach helps to build customer loyalty and drive traffic to Tanger outlet centers.

Customer Segments

The Tanger Factory Outlet Centers, Inc. business model caters to a variety of customer segments including:

• Bargain shoppers: These customers are always on the lookout for a good deal and are attracted to the outlet center's discounted prices on brand-name products.
• Tourists: Tourists visiting a new area often seek out Tanger Outlet Centers as a destination to shop for souvenirs and gifts at discounted prices.
• Brand-conscious consumers: Customers who are loyal to specific brands but are also looking for a good deal are drawn to Tanger Outlet Centers where they can find their favorite brands at lower prices.
• Local residents: Residents living near a Tanger Outlet Center frequent the establishment for everyday shopping needs as well as special events and promotions.

Value Proposition

The value proposition of Tanger Factory Outlet Centers, Inc. lies in offering customers high-quality products from popular brands at discounted prices. By providing a wide selection of merchandise in a convenient location, Tanger Outlet Centers attract customers who are looking for a deal without compromising on quality. Additionally, the outlet centers often feature special events, sales, and promotions to keep customers engaged and coming back for more.

Channels

Tanger Factory Outlet Centers, Inc. utilizes a variety of channels to reach its customer segments, including:

• Physical locations: The outlet centers themselves serve as the primary channel for customers to access discounted products in a brick-and-mortar setting.
• Online presence: Tanger Outlet Centers also have an online presence where customers can browse products, find promotions, and locate their nearest outlet center.
• Marketing and advertising: Tanger Factory Outlet Centers, Inc. leverages traditional and digital marketing channels to promote its offerings and attract new customers.

Cost Structure

The cost structure of Tanger Factory Outlet Centers, Inc. encompasses various expenses that are essential for the successful operation of its outlet centers. These costs include:

• Property acquisition and development: One of the major costs for Tanger is the acquisition of suitable land for developing outlet centers. This includes purchasing land in strategic locations, obtaining necessary permits, and developing the infrastructure for the outlet centers.
• Operational expenses: Tanger incurs operational expenses such as utilities, insurance, property taxes, and lease expenses. These costs are essential for the day-to-day functioning of the outlet centers.
• Marketing and advertising costs: Tanger invests in marketing and advertising initiatives to attract customers to its outlet centers. This includes advertising campaigns, promotional events, and partnerships with brands to drive foot traffic to the centers.
• Staff salaries: Tanger employs a team of staff members who are responsible for managing various aspects of the outlet centers, including customer service, maintenance, marketing, and security. Staff salaries are a significant part of the company's cost structure.
• Maintenance and security services: Tanger ensures that its outlet centers are well-maintained and secure for both customers and tenants. This includes regular maintenance of facilities, landscaping, and security services to prevent theft and ensure the safety of visitors.

Revenue Streams

Tanger Factory Outlet Centers, Inc. generates revenue through various streams, which contribute to the overall profitability of the company. These revenue streams include:

• Rental income from tenants: One of the primary sources of revenue for Tanger is the rental income it receives from its tenants. Tenants pay monthly rent for the space they occupy in the outlet centers, generating a steady stream of income for the company.
• Service charges for maintenance and security: In addition to rental income, Tanger also generates revenue from service charges for maintenance and security services provided to tenants. These charges help cover the costs associated with maintaining the outlet centers and ensuring the safety and security of both tenants and customers.
• Advertising revenue from promotions: Tanger offers advertising opportunities to its tenants to promote their businesses within the outlet centers. These promotions generate additional revenue for the company and help drive foot traffic to the outlets, benefiting both Tanger and its tenants.
• Event hosting fees: Tanger also generates revenue from hosting events at its outlet centers, such as special sales events, holiday celebrations, and community gatherings. These events attract customers to the outlets and provide an additional source of income for the company.