How Philly-area outlets survive and sometimes thrive in an era of dying malls

For the Nowell family, the outlets are an annual tradition.

Every Veterans Day, a dozen relatives venture to Limerick Township in Montgomery County, where they kick off their holiday shopping at the Philadelphia Premium Outlets.

Even this year, as bitter winds whipped through the outdoor plaza, the family was undeterred.

After a morning of shopping, the multigenerational group, which included two veterans, warmed up with their yearly food-court lunch, courtesy of matriarch Geri Nowell, 77, of Telford. Then, the men returned to the cars and dropped off dozens of shopping bags, which they’d been carting around in a wagon. The women walked on, hunting for their next find among the more than 130 shops.

“It’s super fun,” said Ann Blaney, 47, of Drexel Hill.

“We get great deals,” added Kim Woodman, 55, of Hatboro.

The tradition is an experience they say can’t be replicated online. The fact that the complex is open-air and contained in a 550,000-square-foot plaza somehow adds to the fun, they said.

As Kathy Nelson, 48, of Broomall, browsed the outlets with her friends, she said she also shops at the nearly 3 million-square-foot King of Prussia Mall, less than 20 miles away. But otherwise, she said, “there aren’t many indoor malls left” with the variety of stores she prefers.

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As some indoor malls have struggled and died, leaving fewer than 1,000 left nationwide, the outlets remain alive.

Outlets have always accounted for a fraction of the in-person retail market, which is partly why there have been few headlines about dying outlet malls. But some of the country’s roughly 200 outlet malls seem to be downright thriving, with full parking lots on weekends, few vacant stores, and relatively strong revenue.

The Philadelphia region’s two major outlet malls — the Philadelphia Premium Outlets in Limerick Township and the Gloucester Premium Outlets, both owned by Simon Property Group — are more than 92% occupied, according to a count by The Inquirer during visits to each location this month. Both outlets have found success despite being less than 20 miles from thriving indoor malls in King of Prussia and Cherry Hill.

Tanger Outlets, which has locations in Atlantic City and Lancaster, recently reported more than 97% occupancy across its 39 open-air centers and an increase in average tenant sales per square foot.

“Outlets do good in good times and great in bad times,” said Lisa Wagner, a longtime consultant for outlets, repeating a common refrain in the industry.

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The centers have evolved amid the broader push toward more experiential retail and most now have a mix of discount stores and full-price retailers. But they have done so while embracing their reputation as the go-to destination for snagging deals, said Wagner, a principal at the Outlet Resource Group.

“Honestly no one knew what was going to happen after COVID, but [the outlets] came out incredibly strong,” she said. More recently, the retail industry has been rattled by tariffs and economic uncertainty. The outlets have not been immune to those challenges, but they have held strong despite them.

“People want value right now,” Wagner said. “They need it.”

On a rainy, early November Sunday, hundreds of people descended on the Gloucester Premium Outlets.

Shoppers pulled up hoods and huddled under umbrellas as they made their way from store to store. Many balanced several large bags bearing brand names like Columbia and Kate Spade, Rally House and Hey Dude shoes. Some munched on Auntie Anne’s pretzels or sipped Starbucks from holiday cups. An acoustic version of Jingle Bells played over the speakers.

For some, the dreary, drizzly weather was even more reason to spend their afternoon at the 86-store complex in Blackwood, Camden County, about 15 miles outside Philadelphia.

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With two young children in tow, Jessica Bonsu, 30, of Sicklerville, was on a mission.

“We came out to go to the indoor playground,” called Stay & Play, Bonsu said, pointing to her rambunctious kids. “Just to get some energy out.”

“And then we can also get some shopping done,” added her cousin, Taneisha Laume, 30, who was visiting from D.C. She needed a gift for her uncle. “Kill two birds with one stone.”

These kind of multipurpose visits are buoying outlet malls, which are increasingly becoming mixed-use destinations for dining, drinking, entertainment, and shopping.

“You’re coming for a little bit of everything,” said Gerilyn Davis, director of marketing and business development at Philadelphia Premium Outlets.

The Limerick Township complex recently welcomed a slate of new tenants, including Marc Jacobs’ first Pennsylvania outlet store, a BOSS outlet, an Ulta Beauty, and an outpost of central Pennsylvania’s Nissley Vineyards, which has an outdoor seating area.

New Balance, whose shoes are trendy again, is also opening stores in both the Philadelphia and Gloucester outlets.

Justin Stein, Tanger’s executive vice president of leasing, said the North-Carolina-based company is focused on adding more food, beverage, and entertainment options.

While overall occupancy at its Atlantic City center is lower than others, the complex has a Dave & Buster’s and a Ruth’s Chris steakhouse. The Simpson, a Caribbean restaurant and bar, is also set to open there in early 2026.

In Lancaster, Tanger is looking to add food and beverage options, Stein said. But that center is still performing well, with a 97% occupancy rate, according to an online map, and only two vacancies.

When there are places to eat and drink at the outlets, “people stay longer,” Stein said, “and when they stay longer, they spend more.”

Today’s outlet malls look vastly different from what Wagner calls the “no frills” complexes of the 1990s.

At the time, an outlet mall served as “a release valve for excess goods,” Wagner said. “There were some stores that had really broken merchandise.”

To comply with branding rules and avoid competition with department stores, outlet malls were often located along highways between two major metro areas, she said.

“What became clear is that customers loved it,” Wagner said. Soon, brands started overproducing to supply these outlet stores with products in an array of a sizes and colors.

This effort to bulk up outlet offerings was “a roaring success,” she said, with companies finding that more than a third of outlet customers went on to buy their products at full price at other locations.

As their popularity rose, more outlet malls were built across the country.

The Atlantic City outlets, originally called The Walk, opened in 2003, followed by the Philadelphia Premium Outlets four years later. In 2015, the Gloucester Premium Outlets opened, with local officials calling the approximately 400,000-square-foot center the largest economic development project in township history.

As the centers look to the future, their executives are continuing to hone their identity as “not just a discount-and-clearance center,” said Deanna Pascucci, director of marketing and business development at Gloucester Premium Outlets.

Center leaders are bringing in food trucks, leaning into rewards programs, and promoting community events, such as Gloucester’s holiday tree lighting, which took place Saturday. Starting Black Friday, the Philadelphia Premium Outlets will offer Santa photos after a successful pilot program last year.

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And the complexes are finding new ways to attract and retain shoppers, online and in real life.

Tanger recently announced an advertising partnership with Unrivaled Sports, which operates youth sports complexes, including the Ripken Baseball Experience in Aberdeen, Md., an hour drive from its Lancaster outlets. Stein said the company hopes to attract families looking to pass the time between tournament games.

Tanger is also using AI and data analytics to email specific deals to customers based on where they’ve previously shopped, Stein said.

“We want you to start your experience online and end it in the store,” Stein said.

At Simon outlets, customers can search a store’s inventory online before they make the trip, Davis said.

“Online shopping at this point, it’s a complement,” Davis said. “It’s not viewed as competition.”

Wagner, the outlet consultant, said she thinks even more centers will be built in the coming years, with a focus on urban and close-in suburban locations that are accessible by public transit.

As for existing centers, she sees them thriving for the foreseeable future.

“As long as outlets continue to emphasize a value message and use their loyalty programs to reward customers,” Wagner said, “I think they will hold their own.”