We’re spending more than ever at outlet malls. Sales are expected to top $42 billion this year, according to the trade publication Value Retail News. Consumer Reports has rated 53 of the biggest outlet stores for value and quality, based on a survey of almost 16,000 subscribers, and can help you bag the best bargains.
Most shoppers that Consumer Reports surveyed are happy with the outlet deals. Sixty-four percent say outlets offer great value. Those surveyed found superior value at Bon Worth, Haggar, OshKosh B’gosh, Izod, and L.L.Bean. But the ratings from subscribers were not as good for some other stores, including American Eagle Outfitters, Old Navy, Gap, Nike, and Levi’s.
These days most merchandise is made especially for the outlets. But is it the same quality? For example, two Coach bags: One from the Coach store for $378 and the other from the outlet for $150. The retail version is made of a nice, heavy, embossed leather. It has a rounded top, so it sits nicely, and a rounded handle, which is more comfortable. The outlet version is a fine bag, but it has a few less fine details and a flat handle.
When asked about the differences in the quality of merchandise, a spokeswoman for Coach sent NBC 5 the following statement:
Our outlet stores sell manufactured-for-outlet product in addition to discontinued inventory from our retail stores. Made-for-outlet includes both factory exclusives (designed specifically for outlet) as well as archived designs and customer favorites from our retail store (full priced) assortment from previous seasons and years. Both our outlet and retail store product are made from the finest leathers and fabrics, by skilled craftsmen, individually. Our outlet product, as noted, tends to be less embellished. The shoppers in the two channels – retail and outlet – tend to be differentiated and loyal to their specific, preferred channel. Coach’s outlet store design, visual presentations and customer service levels support and reinforce the brand's image. Through these outlet stores, Coach targets value-oriented customers.
There’s a big price difference between J.Crew’s outlet ballet flats ($42) and those from its retail store ($150). The shoes are very similar. But the retail version is made of leather in Italy, and the outlet version is made in China of polyurethane. And the retail version also has a heel, which will provide much better support.
J.Crew declined to comment on this story, but pointed to its outlet website where the company says, "We have a team dedicated to creating fun, easy-to-wear pieces exclusively for factory. No outtakes, no leftovers, just more of what you love for less."
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Also be aware that not everything is cheaper at the outlets. Although a Corelle dinnerware set is identical to the one at the retail store, it actually costs more: $80 instead of $75. Same with a Revere Ware pot and pan set. It’s $70 at the retail store and $68 at the outlet.
Dwight Hill, a partner at McMillan Doolittle, advises big retailers across the globe. He confirms that most retailers now produce cheaper products just for their outlet stores.
He says the savvy consumer can still get the most bang for their outlet buck.
"Look at the product. Look at what it's made with, and where it's made. But then also, use social media as your guide as well. There’s a lot of great sources of information around product reviews, even retailer reviews that can help enable a shopper to get other insights on either the product or the retailer,” said Hill.
Bottom line: Some outlets definitely offer bargains, but you have to shop carefully. Consumer Reports has more tips for outlet shoppers. Head to the back of the store first. You’ll find the biggest markdowns there. And if an item is damaged, always ask for an additional discount. Consumer Reports shoppers got at least 10 percent off, every time.
Complete Ratings and recommendations on all kinds of products, including appliances, cars and trucks, and electronic gear, are available on Consumer Reports’ website. Subscribe to ConsumerReports.org.
