Tanger outlet opening signals maturation of Ottawa's retail scene
Vito Pilieci, Ottawa Citizen
Published on: October 16, 2014, Last Updated: October 16, 2014 7:32 PM EDT
The mammoth Tanger Outlet mall in Kanata will act as a beacon for shoppers and attract more visitors to Ottawa, according to a local retail industry analyst.
The 350,000-square-foot shopping centre, which cost more than $115 million to build and opens on Friday, introduces 80 new stores to the area in the only large-scale outlet shopping centre between Montreal and Toronto. It’s a sign that Ottawa’s retail scene is maturing and offering options that will actually draw shoppers into the region, said to Barry Nabatian, director of market research for Shore-Tanner & Associates
“The Tanger facility will significantly add to the choice of shopping for Ottawa and Gatineau. It is supposed to be a quality/brand name discount store, which is exactly what is needed,” said Nabatian. “It will be the only outlet mall between Montreal and Toronto and most likely it will attract shoppers from between these two large cities, and there will be some cross-shopping by them as a result.”
Nabatian said retailers have done an admirable job of reshaping the landscape in Ottawa over the past decade. The new Tanger Outlets will be flanked by another massive retail development spearheaded by Broccolini/Laurentide Holdings, which will include a Bass Pro Shop as its anchor tenant. However, new retail space at Lansdowne Park, the expansion of the Rideau Centre, the Ottawa Train Yards shopping centre and the expansions of the Bayshore Shopping Centre and the St. Laurent Centre have all provided Ottawa shoppers with more places to shop and more selection.
Nabatian believes that construction in retail will likely slow in the years ahead as many areas, including downtown, will now find that they have reached the maximum number of stores that can be supported by consumers. However, he said retailers will shift their focus to areas such as the city’s south end, where construction continues at a breakneck pace and consumers have very few choices about where to shop.
“Barrhaven in particular is now under-stored, and this shortage will be felt more with the additional traffic and exposure from Strandherd Bridge,” said Nabatian. “With an average population growth of about 11,000 per year in Ottawa, more retail space is continuously needed, especially in Barrhaven, Kanata, and Orléans.”
Nabatian said the creation of the Tanger Outlets, coupled with the Broccolini/Laurentide Holdings development and Canadian Tire Centre will create a destination for shopping and entertainment in the city’s west end that will likely attract further development.
Ottawa is of particular interest to retailers. The average household income is $98,000, and more than 40 per cent of households bring home more than $100,000 annually, making the capital one of the wealthiest cities in the country. Ottawa shoppers spend more than $15.3 billion on retail annually.
Ottawa shops collect, on average, $475 per square foot in retail sales annually. In other Canadian cities, shoppers spend between $250 and $350 per square foot annually.
Tanger chief executive Steve Tanger said the continued strength of the city’s economy made filling the outlet mall with high-end tenants an easy task.
Friday’s grand opening will commence with a ribbon-cutting at 10 a.m. Celebrations will continue throughout the day with numerous special events, and fireworks will be set off after dusk.
Vpilieci@ottawacitizen.com
Twitter.com/vpilieci
http://ottawacitizen.com/news/local-...s-retail-scene
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