Malls Vs. Outlets

According to Time, one in 11 store fronts is empty inside traditional enclosed malls, the highest rate in a decade, with rents down to 2006 levels. Outlet malls, however, are booming because shoppers perceive stores within offer more value, even if the less expensive items for sale offer less detail and different levels of quality. The article noted 85% of the items sold at outlet malls were never sold in full-price stores and are not leftover items or goods damaged or returned at first-run, full-price stores -- the products are produced specifically for sale at outlet malls.

Outlets also offer cost advantages to operate versus traditional malls. They put all stores on one level, eliminating requirements for escalators and elevators, and since they are not enclosed, they do not provide heating or air conditioning. These cost savings add up, making rents, including common area assessments, less expensive.