Are you a sucker for shopping at outlet malls?
Filed under: Bargains, Saving Money, Shopping
Remember when you had to drive into the middle of nowhere to find a factory outlet store? From my house in Sacramento, I had to drive two hours to Gilroy, the Garlic Capital of the World, to shop at one, but it was worth the travel because I knew I was going to score a great deal on designer goods, however "irregular" they may have been. Now, factory outlets -- excuse me, "designer outlet malls" as they're now termed -- are everywhere. I pass two outlet malls on the 90-mile drive to San Francisco. There's even one in the Napa Valley, where plenty of upscale oenophile residents can afford to pay full price. These outlet malls are ubiquitous in California -- and so are the stores in them (Nine West, Brooks Brothers, Bass, Polo).
So have you gone to one recently and noticed the deals aren't as great as they once were? Maybe they're 20% or 25% off, but it's a shocker when items are half price or more. That's what I was thinking during my latest visit over the summer: "Gee, haven't I seen the same markdown for these Nine West sandals at Macy's? Shouldn't I being seeing better at the outlet?"
My suspicions were confirmed after reading MP Dunleavey's good story on MSN Money "Are Outlet Malls for Suckers?" They don't offer the great deals that they used to, and you can often find better deals elsewhere. In fact, they may be promoting "bargains" by first setting artificially high reference prices, then marking them down. Dunleavey got a lot of her information from Cheap: The High Cost of Low Culture, a great new book by Ellen Ruppel Shell that explores what consumers lose when they're always buying things on sale and at the lowest cost possible.
The shocker to me was that many designer outlets sell items created specifically for those outlet stores. Sure, they still sell off-season and irregular items, but many of them, like Coach and Brooks Brothers, supplement their made-for-retail items with made-for-the-outlet items, and they're not alike. What you think is a deal on a designer-label item is actually a fair-value price on a lower-quality product.
Brooks Brothers admitted to Dunleavey that it has a factory-outlet line called 346 that uses different fabrics, some of which are less expensive. Coach has an outlet-specific line, and although it's made with the same quality standards, the styles are different than the ones in its retail stores. Even though it's passé to brag about wearing designer duds, it's still disconcerting to buy something that the retailer created specifically for outlet shoppers. Do they really use the same production standards for customers they're irked at for not buying their goods at full price?
Dunleavey offers some good tips for not getting suckered , like scrutinizing the item for its details (fabric, stitching, heft and weight), research its price beforehand, ask if it's an outlet-specific item, use outlet stores' online coupons to get a better deal, or just go the clearance rack at the actual retail store.
Another reader, "Dominics Mom," added a great suggestion: check out the "real product" in the retail store first to see specifics like its price, details, overall appearance and quality so that when you go to the outlet mall, you have a good comparison and are better able to know what kind of a deal you're really getting.
Reader Comments (Page 1 of 3)
9-17-2009 @ 11:07AM
Tara Kuczykowski said...
You definitely have to pay closer attention to purchases made at outlet stores. Often their return policies are very strict, and you may not be entitled to even exchange a defective product.
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9-17-2009 @ 4:11PM
snarkybigbyte said...
Is this really a surprise to anyone? I mean come on, did it not occur to ask oneself how it could be possible for the sheer number of all the designer outlet stores, over the entire country, to operate on just leftovers from last season, returns, irregulars, etc. only? Did anyone really believe that they were buying the very same, identical, premium, first-quality goods at designer outlet prices, especially when these outlet malls are within proximity of traditional city/urban retail establishments?
Well, I guess such mass stupidity explains who's sitting in the Oval Office. And all those designer companies are laughing all the way to the bank.
9-17-2009 @ 5:53PM
Niki said...
"Shouldn't I being seeing better at the outlet?" The writer should proof read before submitting.
And the thing about outlet stores is most tend to sell normal fresh items in addition to discounted merchandise. Those that only sell discounted merchandise tend not to survive. I remember one that always sold broken items, holiday, or items they clearly would never sell. They always go under. However stores that sell normal merchandise and survive usually have discounted merchandise located elsewhere in the store like Target and Walmart does. The same nike store that sells $150 shoes may also sell $20 shoe. I know, because Ive never paid more than $30 for a pair of shoes ever.
Just because its an outlet store doesnt mean everythings going to be 75% off... ..you just have to keep you eyes open. After all, most of the stuff I buy at 90% off, yes 90, arent at discount malls
9-17-2009 @ 1:50PM
Sue said...
Bargain shopping has been my hobby for over 30 years and I have long ago discovered that instore sales give you betterr goods for less money than outlet malls....just last week I bought a $79 skirt at the Orvis store on sale for $27 that was also available in their on-line sale room for $34. You just have to be in the right place at the right time! Outlet mall stores have been selling inferior merchandise for a very long time. It is still possible to get a good deak at these shops, but you have to know what the retail store carries and what their prices are.
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9-17-2009 @ 2:21PM
Robert said...
You might be right in a major metro area; but in smaller markets, Outlet Malls are the place where you will find a better selection of merchandise from which to make your purchase.
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9-17-2009 @ 2:19PM
Kelly said...
What this article says is what any person who works in a retail outlet store will tell you. Yes they are made with the same standards, but just different fabrics, hence the price difference. I worked for a clothing line and the only difference is that maybe the shirt has only 20% silk instead of 40%. Or the colors might be a tad off. I rather buy clothes like that, then "rejects." Sorry but outlet shopping is still for me. (Just bought 2 pairs of men's Lucky Brand jeans at the outlets for $99, at Macy's they were $99 EACH - how is that not a deal??)
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9-17-2009 @ 2:20PM
LaRue said...
If I were dumb enough to belive that there are no outlet stores in Sacramento, I'd say the author was an idiot driving 2 hours from Sac to that overprice hellhole in Gilroy when there's (cheaper) outlets 45 minutes away in Vacaville.
This article depends on people's lack of knowledge of Northern Cali.
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9-17-2009 @ 2:29PM
Nada said...
Did you read the article, LaRue? She wrote that she USED to have to travel that far for an outlet. Now they are every where.
9-17-2009 @ 4:54PM
Kate said...
Didn't your mama tell you...you get what you pay for.. ;o)
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9-17-2009 @ 2:31PM
Betsy said...
I love to shop and it is my hobby. Am in total agreement with this article.
These "outlet Mall's do NOT always have the lowest great prices or the same "real" merchandise they had 10 to 15 years ago.
I see clothing, handbags, shoes, that NEVER is the same at a regular store, that is definitely being made just for the "outlets
And that bothers me, when I buy that $400 Coach bag for $160 at the Coach outlet store, I want that to be the same $400 bag that is at the real Coach Store in Tysons Corner Mall for example.
Yet, I have discovered quite a bit at the Coach Store was made only for the outlets and it is not quite the same quality. So, have I really saved anything, or was that $400 price tag just a sham to begin with.
I go to my local huge Malls in the Washington DC area to check out prices every week. Then I go to the outlet Malls in VA, MD and Delaware at least 4 times a month.
In Summary: When Macy's, Nordstrom, even Neiman Marcus has a sale, you can do just as good in price or better. and they have a better return policy.
Even many items I find at the St John Outlet are styles I never saw at Nordstrom or NM, EVER, so where did they come from?
Believe me, when you spend $1500 to $3000 on a jacket alone, it better the same quality as the big stores.
We have two homes, one a vacation place, and even towels and sheets can be better quality and cheaper if on sale at Macy's then most outlet malls, that do not sell the same quality.
I really think St John is making some items straight for the outlet malls and others to the high end department stores.
So, even though I had become conditioned to go to outlet malls, I am cutting back. The outlet malls are not always any longer the same great buys they once were.
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9-17-2009 @ 3:04PM
IrishEyes said...
Sorry, but I will never understand how on Earth anyone could ever justify spending $400 on a handbag!! That would make a payment on a really nice vehicle! Priorities, I guess. Outlet mall or not...the price of consumer goods has gotten ridiculous and until we stop paying exhorbitant, inflated prices for things just because they have a brand name stamped on them, there is no hope for things to change. Consumers need to wake up!
9-17-2009 @ 4:38PM
Lisa said...
My husband bought a designer coat at an outlet store and it only lasted a year. He sent it back to be repaired. They told him that since it was bought at a factory outlet, the coat was not up to their usual standards. And that is why the coat was being sold at a outlet store. We learned our lesson. We never shop at outlet stores anymore!
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9-17-2009 @ 3:02PM
not a sucker said...
Why would you buy any brand name stuff to begin with?? Shopping is for suckers only period!! Anyone who thinks that a brand is better than the other has to have their head ck'd. Most items like leather handbags, shoes and the like are made from the same materials just because some guy puts his name on it does not make it any better or any worse. In this tough times
all designers should be looking at going out of business ... But there is always a sucker that keeps them going.. Get tough America stop shopping for a while and you'll see the prices come down very fast.
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9-17-2009 @ 3:06PM
jocardan said...
Having been brought up on the ultimate shopping experience at Boston's Filene's basement, in the 1940s and 50s, these "bargain" outlet malls are not bargains. These outlets can't hold a candle to the various Building 19s in the Eastern Massachusetts area. THERE is where you will experience the true bargain "hunt". I've been to 3 different outlet malls in Massachusetts and New York, and walked out empty handed because I was appalled at their prices. If you are used to paying $2,500 for a fancy designer bag and the outlet mall has it for $900, well, I guess you're getting a bargain, but when you're like me and an $80 bag bought on markdown sale at Macey's is $15 and lasts you 10 years, well then you can come and talk to me about bargains!
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9-17-2009 @ 7:10PM
Grammy said...
I work for Coldwater Creek and I can tell you first hand, if you watch the merchandise in our store when it's on sale and being reduced (we're not an outlet store) and then check the same items when we ship it to the outlet stores, the item will be much higher than it was when we did our final mark down. They automatically remove those tags and start out much higher than we had it the final week or two of the sale. It's ridiculous. You really have to know what you're looking at and what you're buying in order to benefit from these outlet malls.
9-17-2009 @ 3:08PM
Lita said...
Price isn't the only reason to shop at an outlet mall/store; sometimes you can find an item you would like to have very much that is no longer carried by the retail store.
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9-17-2009 @ 3:32PM
Bonnie said...
I would think that most people know the prices of items they want to purchase. If you think you are getting a bargain at an outlet, "go for it." If not, there are other places to go.
Timing & selection are also key. AKA-I might need a comfortable pair of casual shoes, and the mall only has what I like for $50. But, I go to the outlet, and I can find a pair of shoes I like for $29. Okay, I buy them.
On the other hand, I love Stone Mountain pocketbooks. At the outlet, I can get a $140 bag for $75. BUT! If I don't need it right now, I can wait until J C Penney's or Bon Ton clearances them for $49. It's timing on that one.
Same for my Lee Jeans. $49.99. Outlet? $29.99. On sale at KMart? $17.99.
Sheets? I shop the outlet! I have a waterbed, so I cannot buy sheet sets. I wanted Queen sized sateen sheets, the highest thread count I could find. I found them at the outlet for $4.99 a sheet! Believe me, I bought almost all of the ones they had. Okay, so maybe my top sheet & bottom sheet don't exactly match, but they are comfortable, and no one see's my sheets!
It's all in what you want, what you are willing to spend, timing on the need, and knowing what prices are set at. HEY! If you feel like you got a bargain, then kudo's to you!
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9-17-2009 @ 3:40PM
Squiggles said...
I have 4 children, and for my 3 younger ones I like to buy clothes from OshKosh and Carters. I always buy them at Outlets, and so far I have not seen any differences between those clothes and those you could buy at Macy's or elsewhere, except for the price. The clothes are made from the same materials and are of the same quality. A pair of jeans can easily be passed on to a younger sibling and still look good, same goes for shirts and T-shirts. I don't know about you, but I rather pay $12 for a pair of kids' jeans at an outlet than $32 at Macy's. And THAT makes me a SUCKER? I think not!
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9-17-2009 @ 5:05PM
Nan said...
Same for Gymboree - they are just last years goods but a great buy!
9-17-2009 @ 3:50PM
rowdygirl said...
You have to be a smart shopper no matter where you go. Outlet malls are really only a convenience since all the stores are right there.. I haven't really seen a big difference in the prices.
You just have to pay attention so you don't think you're getting a deal when you're really not.
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