Are Outlet Malls Really Offering Bargains?
The term 'outlet mall' often brings to mind significant discounts on high-end brands and treasures from past fashion seasons. However, a recent investigation by Consumers' Checkbook has revealed a different story that could disappoint bargain hunters everywhere.
Key Findings of the Investigation
After an extensive three-month analysis of 40 major brands, including well-known names like Adidas and Zales, researchers at Consumers' Checkbook found that a shocking majority of merchandise sold in outlet and factory stores is specifically manufactured for these locations. Contrary to what many shoppers believe, these items are not simply discounted versions of regular products; instead, they are distinct items produced with cheaper materials.
Three Main Categories of Outlet Merchandise
1.
Made-for-outlet Products: Brands such as J. Crew Factory, Ann Taylor Factory, and Coach primarily sell items designed solely for the outlet market. These products often utilize lower-quality fabrics, include less durable construction, and may feature synthetic materials instead of natural ones.
2.
Genuine Clearance Goods: A smaller group of retailers, including Burberry and Pottery Barn, offer authentic clearance items that consist of overstock or past-season items from their mainline stores. These goods are sold at substantial discounts, making them a better option for savvy shoppers.
3.
Regular-Priced Items in Outlet Locations: Some brands operate outlet locations but do not provide any significant price advantage over their regular retail offerings. Bath and Body Works and Le Creuset are two examples; shoppers may be surprised to discover that they are not enjoying exclusive discounts.
The Misleading World of Pricing
Many outlet stores employ tactics such as 'Compare At' pricing that references significantly different mainline products instead of the outlet items. This practice has drawn scrutiny, resulting in class-action lawsuits against brands like J. Crew and Coach for alleged false advertising and pricing mishaps. Additionally, subtle label differences exist to differentiate outlet goods from mainline items, but these distinctions are not always clearly explained to customers, leading to further confusion.
Tips for Outlet Shoppers
For those keen on making the most of their outlet shopping experience, here are some critical considerations:
- - Ignore 'Compare At' Pricing: These figures typically do not reflect the actual worth of the outlet items.
- - Know the Retailers: Familiarize yourself with stores that genuinely offer clearance items.
- - Price Comparison: Many times, you might find the same items for lower prices on sites like Amazon or brand websites.
- - Consider Secondhand Options: Platforms such as Poshmark or ThredUp may offer quality mainline merchandise at better prices.
- - Identify Quality Features: Look for key indicators of quality like natural fabrics, lined garments, and sturdy construction in accessories and clothing.
The full findings of the investigation, including comprehensive details on the 40 brands and advice for deciphering outlet labels, are available at Consumers' Checkbook's website. This investigation not only brings clarity to the often murky world of outlet shopping but also equips consumers with the knowledge they need to navigate these stores wisely.