Outlet malls are big business in Pennsylvania -- including the tourism business.
The state tourism bureau lists nearly 30 major outlet malls among tourism and historic site travel packages. Global Outlet Management, the Pennsylvania company that wants to develop an 80-store outlet mall in Springfield, operates two of the largest —The Outlets at Hershey and Rockvale Outlets Lancaster.
The Outlets at Springfield is planned for a 30-acre site along Interstate 72, adjacent to Scheels sporting goods.
“Our outlet malls generate a fair amount of tour-bus traffic,” said Thomas Baldrige, president of the Lancaster Chamber of Commerce & Industry.
Rockvale Outlets Lancaster is only about a mile from Tanger Outlets Center. Both anchor an area that combines retail, hotels and restaurants with tourism, said Baldrige. The greater Lancaster area has a population of about 500,000.
The open-air Rockvale mall opened about 25 years ago.
Baldrige said the outlet malls are both considered “suburban” shopping destinations.
“They are separate and distinct from the city,” said Baldrige. “Our city is much more independent owners of retail shops with original architecture. It’s a whole different environment.”
Tax break on clothes
It helps that Pennsylvania charges no sales tax on clothing, said Rick Dunlap of the Hershey-Harrisburg Regional Visitors Bureau.
“Some of the other states are now catching on to the no-tax on clothing,” said Dunlap.
He said the Outlets at Hershey is not a tourism draw by itself. But that outlet mall is near several major tourism attractions, including Hersheypark theme park and Hershey’s Chocolate World.
A number of major retailers, including Bass Pro Shop, have filled in around the outlet mall, said Dunlap.
“We get a lot of group-oriented people,” he said. “They may go to Hersheypark, then they’ll head over to the outlet mall, or take in a show and have dinner. We also have multiple golf courses in our region.”
At Grove City Premium Outlets about 50 miles north of Pittsburgh, daily shoppers probably outnumber the local population of 8,000, said Kay Dannels, office administrator for the Grove City Area Chamber of Commerce.
“We locals know when to go and when not to go. It’s very busy from Easter through November,” said Dannels. “I use to work there part-time. They might have 50 tour buses come down from Canada on Saturday or Sunday.”
Chamber executive director Beth Black said the downtown business district was affected after the outlet mall opened 16 years ago.
“I was in high school when they came,” said Black. “If anything, it forces existing businesses to think out of the box, and not just do what they’ve always done with marketing and advertising.”
She said downtown has rebounded the last few years with the help of a revitalization and historic restoration.
“If I could say anything to the people in Springfield, it’s don’t be afraid of it,” said Black “There’ll be a lot more benefits than scary things.”
Tuscola keeping track
Closer to home, Tanger Outlets at Tuscola, 75 miles east of Springfield, contributes $400,000 a year in property taxes to a local tax-increment financing district and accounts for about half of the annual sales-tax revenues in the community of 5,000, said city administrator J. Drew Hoel.
Hoel said local officials took notice when plans were announced last week for The Outlets at Springfield.
“We do see a lot of Springfield shoppers,” said J. Drew Hoel. “We think we have a good mix here that will still attract them, and hopefully Springfield people won’t be strangers.”
Tanger Factory Outlets Inc., based in Greensboro, N.C., operates 37 outlet malls in 25 states.
Global Outlet Management has not yet announced a construction schedule for the Springfield mall, but Mayor Mike Houston said he believes the center will provide a “substantial” boost to sales tax revenues in the long run.
“I’m very, very happy to see the development taking place, particularly in the economic times that we are living in,” said Houston. “I don’t think anyone anticipated this type of announcement this quickly.”
***
Outlet mall industry
* Total chain-owned outlet malls: 304
* Total stores: 12,924
* Average store size: 4,135 square feet
* Average discount: 38 percent
* Average annual household income of shoppers: $60,525
Top 10 retail chains in outlet malls and number of stores nationwide
* Van Heusen; 200
* Nine West Outlet: 198
* L’eggs Hanes Bali Playtex: 195
* Bass Shoe Outlet: 193
* Gap Outlet: 182
* Carter’s Outlets: 173
* Factory Brand Shoes: 170
* Ultra Diamonds Outlet: 170
* Famous Footwear: 169
* Reebok/Rockport/Greg Norman: 161
Source: Council of Developers of Outlet Centers and Retailers; “Outlet Retail Chain Report, 2010”
No comments:
Post a Comment