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Paragon Outlets Livermore Valley opening
Armani,[link widoczny dla zalogowanych], Burberry,[link widoczny dla zalogowanych], Coach, Prada and Kate Spade are among the brands selling bargain wares at Paragon Outlets Livermore Valley, a 130-store outdoor mall that kicks off a four-day grand opening on Thursday.
The Tri-Valley area anticipates a big economic boost from the upscale outlet mall that will creates 2,[link widoczny dla zalogowanych],000 permanent jobs and hundreds more seasonal ones. The $150 million,[link widoczny dla zalogowanych], 543,000-square-foot center is the first outlet mall to open in California in 11 years and one of only five opening in the United States this year. It sits on former farmland where Livermore adjoins Pleasanton and Dublin,[link widoczny dla zalogowanych], along the Interstate 580 corridor.
"This is an opportunity for all three cities to benefit from a big regional retail center," said ,[link widoczny dla zalogowanych], economic development director for Livermore.
"Many cities dream about having that level of retailers," he said of the well-known brands that pack the mall. "For us to have achieved it here in a facility of this sheer magnitude is really exciting."
Livermore's share of sales-tax revenue - 1 percent of sales - should be in the neighborhood of $6 million to $8 million a year, he said. The city spent $30 million on infrastructure improvements,[link widoczny dla zalogowanych], such as roads,[link widoczny dla zalogowanych], lighting, landscaping and sewers, financed by 20-year bonds that White predicts may be paid off in 12 to 15 years if the mall performs as well as expected. "The typical outlet shopper is a little higher income and better educated than other shoppers,[link widoczny dla zalogowanych]," he said. "They know brands, know the value of brands and know good values.
"America is very brand conscious and everyone likes to get a deal. Coming out of the economic times of the past six years or so, it's even more important."
The stores' leases require that they discount all merchandise 25 to 65 percent every day,[link widoczny dla zalogowanych], he said.
, senior vice president of outlets for Bloomingdale's,[link widoczny dla zalogowanych], said his department store outlet goes one step better. "Nothing in my store is under a 35 percent savings,[link widoczny dla zalogowanych]," he said. "The average is 50 percent off."
The company followed several paths in sourcing its inventory. "We buy prior-season merchandise from Bloomingdale's (regular) stores themselves,[link widoczny dla zalogowanych], at 50, 60, 70 80 percent off," he said. "We buy close-outs and overruns every day of the week. Many manufacturers make goods for us off price - the same goods (as regular stores) but maybe last season's style recut for us."
Bloomingdale's was "late to the game" of outlet shopping, with its first outlet in August 2010. Livermore will be its 12th outlet and first on the West Coast.
"Outlets are a very important, growing piece of the retail landscape,[link widoczny dla zalogowanych]," he said. "Conventional malls are very expensive to build and most major stores have covered their territory already with locations. Companies' growth is mainly online or outlets."
That's led to some concern that high-end retailers may dilute their brands with discounts. Orlick said that wasn't an issue for Bloomingdale's.
"We have a couple of outlets in very close proximity to regular Bloomingdale's. They have not cannibalized our business,[link widoczny dla zalogowanych]," he said. "It becomes a win-win because the customers experience both."
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