OUTLET CENTERS ARE NEW WAVE FOR SHOPPERS

OUTLET CENTER GRAND OPENING SET IN AUGUST: Courtney Corbett, left, manager of the Sikeston Outlet Center, located off Interstate 55 near Highway 62 at Sikeston, talks with Bruce Hiller, co-manager of Dumplins, the only restaurant in the center. The center will hold its grand opening in early August.

Before 1970 about the only way you could get a coveted fresh-from-the-factory bargain was to "know somebody" or work at the manufacturing company.

But then, in 1970, VAF Corp., which makes Vanity Fair and other brands of clothing, started opening its Reading, Pa., factory to the public for a few hours each Saturday.

A shopping phenomenon was born.

Today, the list of manufacturers with retail outlets and discount prices tops 350, and reads like a "Who's Who" of designer and brand names: Bugle Boy, Geoffrey Bean, Liz Claiborne, Hush Puppies, L'Eggs, London Fog, Van Heusen, Woman, OshKosh and many others.

The outlet shopping concept has become the retail rallying cry of the 1990s, say people who are involved in operations of the center.

Factory outlet shopping centers come in all sizes and configurations, and give manufacturers a new way to reach the consumer, says Nita Ewing, marketing director of West Kentucky Outlet Mall near Eddyville, Ky.

At latest count and the number is growing steadily there are more than 300 factory-outlet centers in the United States. Forty new centers sprang up in 1992, and another 100 are on the drawing boards for 1993.

"But, manufacturers watch carefully to be sure that their usual retail customers department and specialty stores don't become too alarmed at this new competition for the consumer's tight dollar," says Nancy Bell of Factory Village Mall in Osage Beach, Mo.

To sidestep direct competition with retailers who sell the same brands, and to hold down rental costs, outlet centers are typically located off the beaten path and at least an hour's drive away from major metropolitan markets.

In the case of smaller regional hub markets, the outlet centers are usually at least 30 to 45 minutes away.

One of the newest outlet centers is at Sikeston, where more than 30 company-owned operations are located about 35 minutes from regional retail hub Cape Girardeau. A larger outlet mall is Western Kentucky Factory Outlets at Eddyville, Ky., near Kentucky and Barkley Lakes, a popular vacation and resort area for Midwest outdoorsmen. The Eddyville center contains 46 stores about a 30-minute drive from regional hub Paducah.

The centers are often located near tourist areas and have become popular destinations in themselves for vacationers and day-trippers. One of the larger outlet centers in Missouri is the Factory Outlet Village at Osage Beach, Mo., near Lake of the Ozarks. Factory Village has 340,000 square feet and a total of 90 stores.

Other notable outlet centers in Missouri include the Factory Merchants Center at Branson and the Bell Factory Outlet at Wentzville, near the St. Louis area.

Upscale appeal

There's a decidely upscale, high-quality feel to the new outlet shopping centers. Most of the merchandise is first quality. Gone are the days when companies put out a jacket with two left sleeves, or pockets sewn inside out.

Irregulars and seconds are at a minimum (in many cases only five percent irregulars), and when offered, each flaw is clearly and carefully marked. More likely scenarios are a pleated skirt dress priced at $126 that is reduced to $28 because a belt is missing, or a Liz Claiborne print jersey dress marked down from $80 to $40 because it is "shaded," which means the color is a tad off.

However, not every store in an outlet shopping center or mall is a true factory outlet store. Mall and outlet-center developers work hard to get just the right mix.

In the newer developments, 80 to 90 percent of the tenants are "true" factory outlets. The other 10 to 20 percent of the tenants are "fillers," stores that sell merchandise in categories not covered by the factory outlets. They're in the center to "round out the mix" but still must sell at discounts.

The true factory outlet is a facility owned and operated by a manufacturer, whose name brand product is normally sold through department or specialty stores.

Some outlet centers require that tenants must offer a minimum of one-third off. Other leases stipulate that tenants must discount their merchandise a minimum of 10 percent less than any local discount store. Everyday savings at an outlet mall will be about 30 percent, but percentages can rise to 80 percent during sales.

During a recent survey by an outlet shopping magazine, more than 90 percent of the consumers surveyed were satisfied with their savings.

Outlet centers provide a big boost to an area's economy.

Employment bonanza

"West Kentucky Factory Outlet employs about 400 people," said Ewing of the 160,000 square foot center. "We keep a daily traffic count and in 1992, we had more than 2.8 million visitors."

The first phase of the center opened at Eddyville in 1988, with a dozen stores. By May of 1989, the center had 28 stores. "We now have 46, with the 47th to open soon," said Ewing.

The Eddyville center is an oblong, horseshoe-shaped structure, with parking spaces surrounding it. A slow-moving shuttle train was added two years ago to transport shoppers from one end of the complex to the other.

"The center has also been a big boost in another way growth around the area," said Ewing. "Before we opened, there was only one small hamburger restaurant here. Now, people have a choice of 10 to 12 restaurants."

A small theme park is opening near the center. "It features bumper cars and other kiddie rides, and also has a bungee-jumping area," said Ewing. "Several other service-type businesses have opened nearby."

The Factory Village Mall, which has more than tripled during its three-phase, five-year history at Osage Beach, employs more than 1,100.

"We opened the first phase of the operation in 1988," said Bell, manager of the operation. "Our third phase opened recently, giving us 340,000 square feet and more than 90 stores.

"We also have six restaurants, a five-screen movie theater and 90 stores," said Bell, who added that more than 3 million people visited the center in 1992.

"We're running well ahead of that figure in 1993," she said. "To date, our 1993 figures are up 50 percent over the same period a year ago."

Newest on scene

Twenty-six stores are now open in the Sikeston Outlet Center, which employs about 200 people.

"We'll have 34 stores in operation by the time we hold our grand opening next month," said Courtney Corbett, manager of the center just off Interstate 55 near Highway 62 (Mile 68 exit) at Sikeston.

Phil Boyer Construction Co. of Sikeston is developer of the new, 120,000-square-foot outlet shopping center,

"We feel this is an ideal location for an outlet mall," said Boyer. "We are halfway between St. Louis and Memphis, and there is a lot of traffic through here on interstate highways I-57 from Illinois joins I-55 at Sikeston."

Boyer, in announcing his plans in September of 1992, indicated that even more traffic is expected as travelers turn their attention toward Branson, a tourist area in Southwest Missouri. Branson, home of Silver Dollar City and numerous country/western shows, is attracting visitors from throughout the United States.

The first phase of the Sikeston center was originally set at about 60,000 square feet, but opened at 80,000. Stores now fill 120,000 square feet.

"We conduct daily traffic counts," said Corbett. "We had some big numbers during the recent Fourth of July holiday, ranging from 2,000 to 3,400 cars each of the three-day holiday period."

Corbett is excited about the grand opening Aug. 6-8.

"We're expecting large crowds and have planned some big activities for the three-day period," she said. A $500 shopping certificate will be presented each day, and may used at various stores in the center."

Other activities include the appearance of a special robot, "Sico," provided by International Robotics; clowns throughout the day; and a Dixieland band the evening of Aug. 7. Also on display will be a sprint racing car, which is sponsored by the outlet center.

Levis became the 26th business to open at the center more than a week ago. Westport Ltd. is expected to open by Aug. 1, with Farah's to open Aug. 6.

"Five more stores to be named later have indicated they will open in the center by our grand opening," said Corbett.

Recent openings include Dumplins, London Fog, Book Warehouse, Famous Footwear, Fragrance Cove, Sweat Shirt Co., Barbizon, Kitchen Collection, S&K Libbey Glass, M.J.'s Jewelry and Greetings-N-More.

Stores that opened in late May or early June were: Duck Head, Aileen, Bass Co. Store, Hush Puppies, Wallet Works, Van Heusen, Le Creuset, Corning Revere, Geoffrey Beene, Welcome Home, Bon Worth, Cape Isle Knitters, L'Eggs, and $9.99 Stockroom.