Tanger CEO discusses the significance of tenant vacancies in the company's operations.

• Stephen Yalof, CEO of Tanger, explained to Jim Cramer on CNBC why having tenant vacancies is beneficial for the outlet chain's business.
• We fill vacancies with temporary leases to gain control and the opportunity to remerchandise and bring in another tenant, as stated by Yalof.

CEO Stephen Yalof explained to CNBC's Jim Cramer how tenant vacancies benefit the outlet chain by keeping business fresh.

We fill vacancies with temporary leases to gain control and the opportunity to remerchandise and bring in another tenant, as stated by Yalof.

Tanger can issue short-term or temporary leases due to vacancies, which allows the company to expand its portfolio, introduce new brands, and attract younger customers who may shop more frequently and spend more.

Tanger's "pop-ups" have led to permanent spots across the chain, including Ugg and Vineyard Vines, according to Yalof.

Although inflation and a challenging economic climate pose challenges for consumers, Yalof stated that retailers always possess a competitive advantage.

"Despite economic challenges, there's always a customer ready to shop at outlets," he stated.

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