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Lured by the promise of luxury goods at discount prices, shoppers spend $22.4 billion at outlet centers, according to a 2010 State of the Industry report by trade publication "Value Retail News." But how much do shoppers save? Recent research on outlet shopping vs. retail by Cheapism.com revealed that consumers can save nearly 30 percent overall by doing their holiday shopping at an outlet mall. Cheapism found individual items for up to 85 percent less than comparable products at a regular retail mall.
Cheapism.com
Coach bags can be 44 percent cheaper at the outlet
The report compares the cost of shopping for a list of potential holiday gifts — an iPhone case, a wallet, a V-neck sweater, for example — and a few other things consumers might need for the season, such as holiday outfits for the kids. The total after discounts and before taxes came to $1,240.15, compared with $1,756.62 at retail — a savings of more than $500, or 29.4 percent, on comparable items. Cheapism also surveyed prices on dozens of additional items. Some of the biggest discounts included a Calphalon open-stock sauté pan for 85 percent off.
Price isn't the only consideration when you're shopping for gifts, however, and often can be misleading. Here are some of Cheapism’s tips for finding the best deals at the outlets:
Know what you’re buying and where it came from. Is that Coach bag a deeply discounted jewel or a made-for-outlet design? Each of the leading brands mentioned in the report is represented by a particular mix of products in its outlet stores. Some items are liquidation merchandise, but others are made specifically for factory stores and some are the same stuff you’d find at retail. Don’t be afraid to ask a salesperson about the origin of an item before you buy.
Pay attention to detail. Made-for-outlet products are sometimes constructed with less expensive material and less embellishment. For example, a red sweater dress from the Gymboree outlet emulated a dress from the previous season’s retail line but was woven from thinner material and lacked pockets and faux-crystal buttons. On the other hand, cosmetic flaws on discounted Dutch ovens at Le Creuset were scarcely noticeable.
Take the list price with a grain of salt. Outlets try to entice shoppers by printing two prices on the tag: the MSRP, or manufacturer’s suggested retail price, and the lower outlet price. Ostensibly this tells you how much you can save off retail, but remember that much of the merchandise some stores carry is made for the outlet and was never sold at retail.
Shop sales and use coupons. Much of the actual savings at outlet malls comes from sales and coupons the stores hand out at the door or offer online. Before discounts, the savings at the outlet mall were closer to 20 percent in Cheapism’s survey.
Retail stores sometimes offer better value. Depending on what you’re looking for, it may not always be worth it to make the trip to the outlet mall. Check Cheapism’s rundown of outlets vs. retail to find out when it pays to shop the outlets.
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30 % is BULL ! For one example I have seen Burberry coats on sale at Nordstroms cheaper than at the Burberry outlet at "Premium Outlets" in Neptune NJ. Also find men's shirts on sale for less than $ 20 at Macy's vs $ 35 at the same outlet. Let the buyer beware/be smart !
I agree...I can find men's Polo shirts $10-20 cheaper, and Nautica jeans $25 cheaper at my local Marshall's or Ross than outlets, and I don't have to drive an hour and use all that gas just to get to the outlet store.
Agreed as well. I've been to outlet shops from Ohio, PA, and Maryland. The majority of the outlet shops basically have the same discounts found in the retail locations. Not to say there aren't super discounts to be found at outlet shops, but they are not as frequent & abundant as most consumers would believe.
Unless an outlet mall has a shop not regularly found at retail locations, I wouldn't expect these expected super-savings. Most of the time it's better to save your gas and shop around your town --- an hour-long trip may be a fun get-away with family & friends --- just don't expect to save too much in the end.
Don't forget the travel costs. People drive hundreds of miles to get to these things and back.
In my experience, you have to look very carefully for the good deals.... and very very carefully check each item for damage. Way to many seconds and the cheap outlet only garments to make it worth my time.
Nordstrom Rack sells crap. It's nothing like the regular store. Don't waste your time.
Coupons using the website Printapons are visible on every page so that you don't miss an opportunity to save!
In the daily life, we are surround by dozens of coupons & deals and we are lured to shopping things which may be unnecessary. In my opinion, shopping online rationally is more important than saving money with coupons. I tend to make a shopping list and make full preparation for it. I like CouponSnapshot.com and RetailMeNot.com, because they often provide really helpful deals.
Whatever you do, don't ask the sales person about the origin of the product that they are selling. Just what in the hell do you think that they know about such things? Why would they be privy to such information, and, why would they even care?
If they had that type of knowledge about the product that is sitting on the shelf, or on the hanger, they would probably not be schlepping around that store for minimum wage!! That would mean that they have a job somewhere else in the company--in the distribution or buying---, not picking up your clothes out of the dressing room, stocking the shelves and manning the cash register, and clocking out for lunch breaks and working lousy hours.
I worked retail for many years, and it never ceased to amaze me some of the things that customers would ask me about the products. Of course, a good sales person will know the product that they are selling. But, some people expect you to know more than you need to know. An in store sales associate does not have a need to know the details of distribution and production and procurement. Just because theirs is the face at the register does not mean that they had any input or knowledge of how it was made, where it was made, or it's distribution. Sure, the nature of some products requires more knowledge to sell than do some products. But, generally, the mim wage sales associate is not privy to much more than stocking and manning the store front. If they had more involvement, they would be paid more than mim wage.
After years of working retail, I found that to just make up an answer sent them away empowered and smug in the glow that they had consulted the oracle, and THEY knew the truth because they asked the sales person.
Don't be a schmuck. Don't ask a sales person questions that they do not need to know the answer to. Email the company at the web site where it says "contact us".
I remember a time when large department stores did maintain smaller clearance stores where they sold the unsold merchandise for a discount. Then, it became big business to sell under this banner and they started to make items just to sell at outlets.
Even all of those bargain books that you see at B &N and at the now defunct Borders, are made to sell as bargains.
I usually get 75%-80% off at Potomac Mills Mall in Virginia. Not telling you which store. ;) Well worth the trip!