Factory Outlet Success Celebrated -- Pacific Edge Mall In Burlington Expands By 25% With 16 New Stores

Shortly after the Pacific Edge Factory Outlet opened in Burlington in 1989, the developers' research found that the local outlet's customers differed from those on the East Coast or in California.

She - the average shopper is female - shopped more often for family or friends, rather than herself. And she displayed a particular passion for Nordstrom merchandise that factory outlet developers found disconcerting.

"We were hearing, `If Nordstrom doesn't have it, maybe it's not worth having' " says Leslie Sadler, assistant vice president of marketing for the Washington, D.C.-based McArthur/Glen Group, developer of the mall. "That's changing a little bit."

Sadler - smartly dressed from head to toe in outlet purchases - was in town to publicize the Burlington mall's expansion. In recent months, it has boosted its square footage by about 25 percent and brought in 16 more major manufacturers - Geoffrey Beene, Bass, Chaus, to name a few. A grand opening is set for Saturday.

One of the largest such developers in the nation, with 16 malls in eight states, McArthur/Glen aims for the discriminating bargain shopper. Tenants include well-known names - Adolfo II, Evan Picone, JH Collectibles, Jones New York, Liz Claiborne and John Henry - and the merchandise usually is unblemished and straight from the manufacturer.

The nation's recent economic weakness has been a boon to the outlet business, whose sales have been rising.

"The recession has offered everyone a reason to shop for bargains," Sadler says. In fact, McArthur/Glen is doing so well it's considering filing an initial public stock offering, following the lead of other outlet mall developers. Going public would allow it to continue expanding at the current rate, Sadler says.

"Wall Street is apparently very interested in good outlet developers," she notes.

While some shoppers may find outlet shopping time-consuming and inconvenient, research shows that many will put up with the hassle if the mall is less than an hour-and-a-half away. That may be why 70 percent of the Burlington mall's customers are from the Seattle area.

Still, the malls need to keep their distance from urban areas. Since their tenants are manufacturers, they don't want to anger the stores they sell to by offering cut-rate competition right next door.

But the competition is getting closer than it was when the Burlington mall, which is 65 miles from Seattle, was built four years ago.

Now, "about 35 miles is the unwritten rule," Sadler says.