Tanger Factory Outlet Centers CEO Stephen Yalof said rising gas prices are not currently deterring shoppers from visiting outlet centers [1].

This assessment suggests that consumer demand for discounted luxury and brand-name goods remains resilient despite inflationary pressures on transportation. If shoppers prioritize the savings found at outlet malls over the cost of the drive, the retail sector may be better insulated from fuel price volatility than previously expected.

Speaking during an interview on CNBC’s ‘Fast Money,’ Yalof addressed the relationship between fuel costs and consumer behavior [1]. He said that gas prices are less of an issue when shoppers know they are getting value [1]. According to Yalof, the perceived savings at these locations effectively offset the increased expense of traveling to them [1].

Retail trends often show a decline in foot traffic when fuel costs spike, as consumers reduce non-essential trips. However, Yalof said that rising gas prices haven’t yet impacted outlet traffic [2]. This indicates a specific consumer psychology where the financial gain from a discount outweighs the marginal increase in gas expenditures.

The CEO's comments highlight a shift in how value is calculated by the modern consumer. While fuel is a recurring cost, the high-value discounts available at Tanger outlets create a destination-based incentive that maintains steady visitor numbers [1].

Yalof's observations were echoed across related segments on Yahoo Finance and MSN video platforms [3, 4]. The consistent message is that the value proposition of the outlet model remains strong enough to overcome the friction of higher pump prices [1, 2].

“Gas prices are less of an issue when shoppers know they are getting value.”

This suggests that 'destination retail' survives economic headwinds by offering a high enough reward to justify the cost of travel. If consumers view the trip as a way to save money overall, the correlation between gas prices and retail traffic weakens, providing a buffer for outlet operators during energy price spikes.