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No. of Recommendations: 7
Retail in general getting hit hard. My observations:

Personally I find outlet malls less interesting than before. At the very beginning, outlet stores were distribution for seconds, over production. Now you see extremely little of that type of outlet. Outlet got to mean simply alternative format stores. At least it used to be that they had unique stores. For instance the big one in Gilroy, California, had Mikasa, Royal Doulton, but these are gone. They do still have a lot of quality stores, but I think the ratio is dropping and you are getting more of the mom and pop stores selling dubious stuff.

Regular malls are closer to town and have some sense of community. They can be repurposed, possibly, to movie theaters, gyms, doctors offices, etc. They are good to walk when it is cold or raining. I do not see how an outlet mall can be repurposed.

Also, many a mall is on very valuable property. I wonder how much of a fallback position that is. Probably not much, but it is something. OTOH, malls on the outskirts of medium sized cities probably do not sit on valuable property. And outlet malls almost by design sit on land that was cheap before, and will remain so if the mall fails.

So I see outlet malls as having only one play in their playbook. It either works or it does not, and that is that.
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