Prime Outlets – Williamsburg unveils expansion amid weakening economy

WILLIAMSBURG

Susan Hogan spent her lunch break Friday afternoon strolling past the new stores at Prime Outlets - Williamsburg. The part-time bookkeeper peeked into a few shops before entering American Eagle Outfitters and finding a bargain.

The Williamsburg resident spent $30 on two shirts, saving, she said, about $70.

"It's an outlet mall so the low prices reflect sales," she said. "But I'm fortunate that I can even be able to spend, much to my husband's dismay."

On Friday, Prime Outlets - Williamsburg unveiled its $55 million expansion, which began in July. The 20-year-old outlet center added 25 new stores to its roster, bringing the total to 120. A 300-seat food court and more than 800 new parking spaces complete the 115,000-square-foot addition.

It may seem an odd time to expand any retail center with a possible recession looming and consumer confidence and spending pulling back.

But the decision to expand was made several years ago, said Margie Johnson, president of ShopTalk, a local retail consulting business. The developers couldn't have predicted the sluggish economy, she said. "They're not going to stop construction."

Johnson said Williamsburg has become a shopping hot spot and called the expansion "one of the best offers for shopping in the Southeast."

But as prices for necessities such as food and gas increase, many consumers have been left with little extra to spend. Retailers are feeling the pinch.

National retailers such as Sharper Image and Lillian Vernon, based in Virginia Beach, have gone into bankruptcy. Some, including Linens 'n Things, may be teetering on the edge.

Others, like Foot Locker and Ann Taylor, are closing stores to save cash during the economic downturn. Representatives of both chains declined to say if any local stores would be closed.

Yet managers remain confident at Prime Outlets - Williamsburg.

What makes outlets different from regular stores are the discounts that they offer, said Nicholas Barrett, the center's general manager. Stores there routinely offer between 25 and 60 percent off their merchandise, he said.

Sales at the center have held up well so far this year, he said. A post-holiday slump slowed sales in January, but sales rebounded in February and March, he said.

Terry Flanigan, district manager of the new Marc Ecko store, was optimistic about its future. The store, the first in Hampton Roads, sells urban youth wear. The outlet gets merchandise about a month after it hits department stores, she said.

"These jeans are normally $70 and we sell them for $20," Flanigan said.

Aaron Leewe, store manager for the new Tommy Bahama, a resort-wear retailer, also seemed happy about sales. "When we opened our doors today, we had 15 people waiting, so I'm pretty confident in my sales and staff," he said.

Customers welcomed the new retail choices at Prime Outlets.

Newport News resident Alex Marse bought two T-shirts from PacSun. The Old Dominion University journalism student said he spent $30. He said he plans to spend the $25 he saved on gas.

Beth Drumm and her 9-year-old daughter Casey Lynch were on a five-day vacation from New Rochelle, N.Y. Both were looking for deals on sunglasses and shoes at Prime Outlets.

"I do find myself being more cautious...," Drumm said. "The deals make it more comfortable to spend, but only for what I need."

Meanwhile, Hogan, who said she shops at the outlet center at least once a month, continued to hunt for more bargains.

She said she plans to spend the money she saves there on even more clothes, starting with that $70.

Jennifer Jiggetts, (757) 446-2643, Jennifer.Jiggetts@pilotonline.com.