"Another aspect to Tanger’s moat is the fact that management is highly disciplined in their growth efforts. For example, unlike traditional mall retailers, which are suffering through an oversupply in retail space, Tanger has been slow to open new factory outlet center locations.
That’s because management doesn’t invest shareholder capital unless it’s very confident that it can maintain very high occupancy, with long-term leases that make for both high profitability and very stable cash flow.
In fact, thanks to the small size of the factory discount outlet industry (70 million square feet, less than the retail space in Chicago), this niche retail industry continues to generate very high profitability."
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