
Once the target of bargain hunters and weekend road warriors, many outlet malls have closed or have significantly fewer stores because of a shift in consumer tastes and renovations at urban malls, said James Lowry, marketing professor.
"The outlet malls were at the height of their popularity in the early 1990s," he said. "They were popping up all over the country and customers loved the lower prices, which were 30 to 50 percent less expensive than at urban malls or department stores.
"The death knell was probably a few years later when urban malls began to fight back. They remodeled and added new stores. The real transformation came when retailers began to offer deep, deep discounts on a regular basis."
Manufacturers created outlet stores to sell excess merchandise directly to consumers, who were attracted by low prices. Outlet malls, created to house these stores, were located 30 to 60 miles from urban population centers. The most popular locations for outlet malls are along major interstates or near popular vacation destinations.
"Bargain hunters used to love to make that trip, but today why travel 40 to 50 miles when you can go to the local mall for the same merchandise at the same prices," he said. "Shoppers go where they can find the best deal."
Other factors facing outlet malls include overbuilding such facilities, elimination or merger of many of the outlet mall tenants and the rise of middle-class department stores, Lowry said.
"Outlet malls used to be new and different, but it seemed for a while they were everywhere," Lowry said. "The main competition now comes from Target and Kohl's, two discounters that are rapidly expanding across the country. They offer the same merchandise at the same prices, but are located closer to shoppers."
While outlet malls have stumbled upon hard times, Lowry believes they will survive.
"We haven't seen very many new ones built in the last few years," he said. "Some have gone out of business and others have new management or ownership in an ef
(NOTE TO EDITORS: For more information, contact Lowry at jlowry@bsu.eduor (765) 285-5180.)



