From the Fool:
"Many retail businesses are struggling.
This is especially true with higher-end or full-retail-price businesses
that specialize in discretionary goods -- that is, things people really
don't need. There simply is too much competition from e-commerce and
One smart way to invest in the changing retail landscape is with
outlet retail. Outlets offer discounts that often can't be matched
online, and also offer unique bargains in stores, creating an experiential component.
Pure-play outlet-shopping REIT Tanger Factory Outlet Centers could be a smart way to take advantage, especially at its current rock-bottom valuation.
Tanger's properties are currently more than 97% occupied and have
never fallen below 95% in its 37-year history. This is why the company
has increased its dividend for 24 years in a row, and with one of the
lowest FFO payout ratios in the real estate sector, there should be
plenty of room for future increases.
This is especially true considering Tanger's growth potential. Outlet
shopping is still a relatively small part of the retail landscape, and
there could be lots of room to grow in the coming decades. Shoppers are
becoming increasingly bargain conscious, and this could be a huge
positive catalyst for Tanger. With arguably the most recognizable brand
name in outlet shopping, Tanger is only in 22 states so far, so there
are plenty of underserved markets Tanger could take advantage of in the