Checkbook staffers spent three months visiting 40 brand-name outlets, scrutinizing online terms and conditions.
by Jennifer Barger, Director of Content, Checkbook.org The words “outlet mall” or “factory store” make many shoppers envision way-marked-down designer bags, slightly damaged furniture or first-quality, last-season fashions at steep discounts.
But a new study by Consumers’ Checkbook found that many are churning out cheaper merch specifically for their “discount” locations. Checkbook staffers spent three months visiting 40 brand-name outlets, scrutinizing online terms and conditions, and trying to figure out what exactly off-price stores were selling.
What we found was that about half of the off-price stores we investigated—particularly for mid-priced apparel stores like J. Crew and Banana Republic—are selling made-for-outlet goods, usually with cheaper fabrications and fewer fine details than mainline store merchandise. Houseware chains and some high-end designers operate genuine clearance centers with discounted merchandise that once appeared in regular stores: a floor model Pottery Barn dresser; last season’s Burberry trench coat.
Outlet stores started as small, manufacturer-run businesses—often near factories—selling past-season, overstock, or slightly damaged products at big discounts. Outlet malls began popping up in the late 20th century, fueled by big-name factory stores from the likes of L.L. Bean and Coach. But the rise of fast fashion—and an increasingly bargain-hungry populace—meant shoppers wanted more deals.
So brands like Ann Taylor, Gap, and J. Crew opened off-price stores. These presumably became so popular that they were impossible to fill with leftovers or older goods. So many retailers started manufacturing completely different, lower-quality, lower-priced merchandise for their “outlet” or “factory” locations. Many outlet stores bear signs with the company name but no mention of outlet, clearance, or factory.
Some use different labels and logos on outlet merchandise, but it’s often an if-you-know-you-know secret.
“Companies are subtle about branding and labels for outlets because they don’t want to lose their magic,” said Gonca Soysal, a marketing professor and retail expert. “If they say, ‘this is a different product,’ then that illusion vanishes. ” Another hint that the stuff at outlets may never have been on the floor at your local mall? Many brands now operate more off-price stores than regular-price ones.
For instance, there are 96 Ann Taylor stores—but 122 Ann Taylor Factory stores—across the U.S., and just 93 Nordstrom department stores compared to 269 Nordstrom Racks. Yes, prices at outlet stores are usually lower than those at mainline stores for similar items, but even a casual glance at a fabric composition tag or a look at the stitching on a bag reveals significant quality differences.
If you want to do some outlet shopping, arm yourself with a few tips.that only stock made-for-outlet items. If you shop at them, you’re getting a completely different product than you’ll find at department stores or mainline shops.
“A brand you know at full price might have a certain standard of quality that isn’t the same at the outlet,” says Pamela N. Danzinger, an outlet mall expert. These are outlet and off-price marketing tricks and don’t mean anything. If an item came from an original store or maker, it’ll usually have a price tag reflecting that , sometimes with little low-tech stickers planted over original prices.
Whether you’re bargain hunting for last-season or overstock stuff at a clearance center or a thrift store, it helps to be familiar with the mainline brand’s styling, fabrication, construction, and quality. This can also help you separate made-for-outlet wares from better-made original items: For instance, the ballet flats we spotted at the Tory Burch outlet have plastic soles and retail for around $120; mainline Tory ballerinas cost $200 or more and usually sport leather soles.
At Stores Offering Real Deals, Expect Chaos, Limited Sizing, Restrictive Return Policies, and Maybe Slightly Damaged Goods True outlets are a mixed bag, stocking things people didn’t buy at regular price in regular stores, floor model furniture, and, in the case of Anthropologie/Free People’s Reclectic outlets, used rental garments. Check prices of similar items currently for sale at the mainline store.
If Banana Republic’s regular store is running 40 percent off, you’ll probably get a nicer sweater or shirt there than if you buy the made-for-outlet version. Similarly, when shopping outlet or factory stores for Nike, Polo Ralph Lauren, New Balance, and other brands that also sell stuff in department stores, Amazon, etc., compare what you’ll pay in the brand-operated stores with what you’d pay elsewhere.is a nonprofit organization that helps consumers get good service and low prices.
It does this by providing unbiased ratings, advice, and price information. Checkbook is supported by consumers and takes no money from the service providers it evaluates. Party platforms are typically lengthy documents intended to define political values, not enact law.
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