Tanger Cut Its Dividend, But May Have Saved Its Business
Retailers were under pressure before the coronavirus started to spread around the world and eventually led to the economic shutdown of the United States. Tanger Factory Outlet Centers (NYSE: SKT), a retail-focused real estate investment trust (REIT), took swift action. The decision has had major consequences for investors, but in the long run it will likely be the right move for the company and shareholders. Here's what happened and why.
The retail industry has been dealing with the so-called "retail apocalypse" for years. The general logic is that consumers are increasingly buying things online, leaving brick-and-mortar retailers with falling customer traffic and sales. There's a grain of truth in this, for sure -- but a big part of the problem is that many retailers have simply under-invested in their businesses (notably on the internet), fallen out of step with consumer trends, and, perhaps most notably, allowed themselves to get over-leveraged.
Image source: Getty Images
Source Fool.com
