Tanger's $130M Acquisition of Legends Outlets: A Strategic Play in the Resilient U.S. Outlet Retail Sector?

The U.S. retail landscape is undergoing a profound transformation, driven by the confluence of e-commerce dominance and the reimagining of physical spaces as experiential hubs. In this context, Tanger Outlets' reported $130 million acquisition of Legends Outlets in 2025 raises critical questions about its alignment with evolving consumer behavior and the broader mall revitalization movement. While specific details on the transaction remain opaque, Tanger's public strategy and industry trends offer a framework to assess its potential as a value-creating move.

Consumer Behavior Shifts: From Commodity to Experience

The pandemic accelerated a long-term shift in consumer preferences, with shoppers increasingly prioritizing experiences over mere transactions. According to a 2024 report by the National Retail Federation, 68% of U.S. consumers now favor retail destinations that blend shopping with dining, entertainment, and social interaction. Tanger's emphasis on “dynamic, community-focused spaces”Tanger Outlets. *Our Company*.^[3]—as outlined in its corporate strategy—directly addresses this demand. By acquiring Legends Outlets, a brand historically associated with discounted retail, Tanger may be seeking to reposition the asset as a mixed-use destination. This mirrors the success of Tanger's own properties, such as the Tanger Outlets in Maryland, which have integrated food halls and family entertainment centers to drive foot traffic and dwell timeTanger Outlets. *Our Company*.^[3].

Mall Revitalization: Operational Resilience in a Digital Age

The acquisition also aligns with a broader industry trend of repurposing underperforming retail assets. Traditional malls, once reliant on anchor tenants like department stores, have struggled as e-commerce eroded their relevance. However, outlet centers and power centers—Tanger's core holdings—have shown greater resilience. Data from CoStar Group indicates that outlet centers posted a 4.2% year-over-year increase in occupancy rates in 2024, outpacing traditional malls by nearly 3 percentage points. Tanger's acquisition of Legends Outlets could reflect a bid to capitalize on this divergence, leveraging its expertise in repositioning assets to meet shifting demand.

Strategic Rationale: Asset Management and Long-Term Value

Tanger's corporate philosophy underscores the importance of “operational resilience” and “long-term growth”Tanger Outlets. *Our Company*.^[3], terms that resonate with the challenges facing brick-and-mortar retail. By acquiring Legends Outlets, Tanger may aim to consolidate its position in high-growth suburban and tourist corridors, where outlet retail thrives. These locations benefit from a hybrid model: they attract price-sensitive shoppers seeking discounts while offering premium experiences that deter purely online competition. For instance, Tanger's integration of immersive branding—such as themed architecture and interactive events—has historically boosted tenant sales by 12–15% post-renovationTanger Outlets. *Our Company*.^[3]. Applying such strategies to Legends Outlets could enhance its cash flow profile and asset value.

The E-Commerce Paradox: Complement, Not Competition

Critics argue that outlet centers merely delay the inevitable decline of physical retail. Yet Tanger's approach suggests a more nuanced view: treating physical and digital channels as complementary. Many outlet tenants now use their stores as fulfillment centers for online orders, while Tanger's own website drives traffic to its properties through curated promotions. This “omnichannel” strategy mitigates e-commerce's threat by turning stores into touchpoints rather than competitors. As stated by a 2023 McKinsey analysis, retailers that harmonize online and offline experiences grow revenue 2.5 times faster than those that don't.

Conclusion: A Calculated Bet on Retail's New Normal

While the specifics of Tanger's Legends Outlets acquisition remain unverified, its strategic logic is rooted in well-documented trends. By transforming outlet centers into experiential destinations, Tanger is positioning itself to thrive in a post-pandemic era where consumers crave both value and engagement. The success of this $130 million bet will hinge on its ability to execute mall revitalization at scale, balancing capital expenditures with tenant diversity and operational agility. For investors, the acquisition represents a test of Tanger's adaptability—a trait that may determine the future of brick-and-mortar retail itself.