The developers of two new Charlotte area outlet malls set to open in 2014 have two very different ideas on the future of both projects.
During recent conference calls with shareholders, David Simon, CEO of Simon Property Group said, "It will be a competition on who gets the retailers, and the experience will ultimately dictate that somebody will get the project and somebody won't, and there'll be one built."
While Steven Tanger, president of Tanger Factory Outlet Centers said, "Charlotte is one of the top 20 markets in the United States and probably could support two outlets in addition to Concord Mills."
Simon's outlet will be in built along Interstate 485 and Idlewild Road in Stallings. The Tanger outlet will be about 20 miles away, off I-485 and Steele Creek Road.
Queens University economics professor Dr. Harry Bowen thinks the Charlotte area can sustain two more outlet malls as long as they can attract stores that will offer different things. He said retailers will have the upper hand during the vetting process.
"You have two people competing for one store and the store therefore now has a lot of bargaining power, so it can play one of these people off the other one in order to achieve a much better price,” Bowens said.
Bowens said those savings could trickle down to future customers in the form of cheaper prices in the stores.
"Competition is a win-win for consumers," he said.
For now, both outlet developers are moving forward with plans to open in 2014.
Eyewitness News found a bit of interesting information while researching this story. Simon and Tanger recently worked together on an 80-store outlet mall in Texas City, Texas. It opened on Oct. 19.