Beware: Outlet Stores Could Be Fooling You
There’s a general assumption that outlet stores are full of leftovers—the products that didn’t sell at their original price point and are significantly more alluring when you think you’re getting a deal. But that’s not true.
Buzzfeed reports that outlet shoppers aren’t actually getting a bargain at all. Instead, they’re often unknowingly buying lower quality products. It used to be the way you think it is, the left overs priced lower, but because the profitability of discount shops spurred a demand for items at lower price points, brands started making items specifically for their corresponding outlets. As Buzzfeed news reporter Sapna Maheshwari points out, more often than not, “manufacturer to factory outlet goods” are of lesser quality.
This has led many to feel that the MSRP (Manufacturer’s Suggested Retail Price) is deceptive, as consumers are led to believe that they’re purchasing items of retail quality—only discounted—and that’s just not the case. “The larger brands… are creating outlets in and of themselves,” Ilse Metchek, President of the California Fashion Association, confirms.
In January 2014, four members of congress requested a federal investigation in 2014 by the FTC to inspect “potentially misleading marketing practices by outlet stores.” There is no regulation though, which makes the whole thing even more confusing.
How does one, then, not fall for the misleading marketing loophole? Using Coach as an example, Metchek explains: “When you’re going into a Coach, you will see certain things with an MSRP (Manufacturer’s Suggested Retail Price) because they maybe didn’t sell at the regular price. But you won’t see it on things that were made exclusively for the outlet stores.” So if you go into an outlet and you see an MSRP, you can assume that it came from the main retail branch and “was an existing pattern,” according to Mechek.
Other than the MSRP stamp, it’s hard to tell what’s authentic and what was made specifically for the outlet. A handful of brands are courteous enough to notify consumers on the price tags. At the Gap Outlet, three dots on the price tag lets you know it’s made for the outlet. At J.Crew Factory, it’s two diamonds under the “r”. And when in doubt, there’s the Internet! Coleen Tressler—a consumer education specialist from the FTC—suggests using your phone to compare outlet versus retail prices. Or, simply ask sales associates if the shop stocks made-for-outlet items only. For more tips, check out the video above. Happy shopping!
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