The major outlet center closest to Boston is in Wrentham, a 45-minute drive from the city in light traffic.
Federal Realty executives said they are convinced the outlet strategy will work, given the shaky economic times, because consumers want their favorite brands at lower prices, and retailers are quickly adjusting to accommodate their changing habits.
“ ‘Outlet’ just screamed out at us as the right time, and [it’s] the right use for what we’re doing at Assembly Row,’’ said Chris Weilminster, the executive in charge of leasing for the project.
He said Federal Realty is not ready to name any of the stores, but added that “we can tell you with great confidence that retailers are embracing this opportunity and are very excited about it.’’
Jon Hurst, president of the Retail Association of Massachusetts, said it would be unusual for so many outlet stores to open close to a city that already has a heavy concentration of national brands. Typically, retailers cluster those stores in suburban locations that will draw crowds from several population centers.
But he noted that stiff competition in urban areas and an increasing emphasis by consumers on finding bargains has led many chains to offer more discount stores, in addition to their full-price boutiques.
“For retailers, outlets are a potential growth area in this day and age when consumers are watching every dime,’’ Hurst said. “Stores want to grow their customer base and provide more shopping alternatives.’’
After years of bureaucratic snags and false starts, Federal Realty has begun building roads and other infrastructure at the 45-acre site. The company expects to begin construction on the first buildings early next year: a pair of apartment blocks with 450 units and street-level stores, being developed by AvalonBay Communities Inc..
Work on a third residential building is scheduled to start soon, as well as on a retail complex that will include a 12-screen movie theater, restaurants, and additional stores.
