Reuters Summit-Mid-priced department stores mull outlet idea

(For other news from the Reuters Global Real Estate Summit, click here)

* Outlet store concept has worked well for upscale rivals

* Tanger CEO says talking to a number of companies

* Macy's says studying the idea, has no specific plans

By Aarthi Sivaraman

NEW YORK, June 23 (Reuters) - Mid-priced U.S. department store chains are beginning to eye the outlet store concept, which has worked for their upscale rivals, the chief executive of Tanger Factory Outlet Centers Inc (SKT.N: Quote, Profile, Research) said on Tuesday.

Higher-end department store chains like Saks Inc (SKS.N: Quote, Profile, Research) and Nordstrom Inc (JWN.N: Quote, Profile, Research) already operate shops -- Saks OFF 5th and Nordstrom Rack -- that sell designer brands at 40 percent to 60 percent off regular prices.

Outlet stores have attracted more shoppers in the recession because saving money, even when buying high-fashion brands, has become a top priority.

"There are other department store chains now, more moderate, looking at setting up an outlet distribution channel," Tanger CEO Steven Tanger said at the Reuters Global Real Estate Summit in New York.