The Great Recession has been tough on shoppers' wallets, but
it's meant more business for outlet malls. A long car ride to the
exurbs of the big cities, where such malls have sprung up, has
become a regular routine for many consumers seeking savings on
brand-name merchandise, says Catherine Moellering, executive
vice-president of Tobe, a New York�based
fashion-trend-forecasting firm. On average, outlet-mall shoppers
made the pilgrimage nine times in 2010 and spent $165 per trip,
according to Linda Humphers, editor in chief of
Value Retail News,
a trade publication. That's almost a 20% increase from $137 per
trip in 2005, she says.
TAKE OUR QUIZ:
Outlet Malls: Deal or No Deal?
But are shoppers always getting a good deal? Before gassing up
your car, here are five things you should know about shopping at
outlet malls:
1. Why You Feel the Urge to Buy
Consider the psychology of outlet malls: Developers know that
it's one thing for you to walk into a neighborhood mall, browse,
and walk out without purchasing anything. But when you travel an
hour or more, the pressure to buy is on. That's why most outlet
malls are on the outskirts of tourist-friendly cities and at least
30 miles away from full-price retailers, according to
Consumer Reports
magazine, which conducted a
reader survey
last year that found 60% of respondents were satisfied with their
outlet experience. When you've driven all that way just to
bargain-shop, you can't leave empty-handed, right?
Then there are the price tags merchants use at outlet malls,
which prominently display a manufacturer's suggested retail price
(MSRP) for comparison with the outlet price. It's almost like a car
sticker price (and who pays sticker price, except for chumps?). "A
lot of the products with price tags that list the MSRP were made
strictly for the outlet and have never been for sale in the retail
store. Shoppers think they're getting a big deal in comparison to
retail prices and they're really not," says Max Levitte, co-founder
and CEO of consumer news site
Cheapism.com
.
2. Call Ahead, Shop Early
Outlet malls operate on a principal of moving merchandise out
the door as quickly as possible. First come, first served. So, if
you're investing all that gas money to purchase a hot-ticket item,
call ahead to find out when a desired store's latest shipment is
scheduled to come in, suggests Sarah Lahey, co-author of
Frommer's
"Born to Shop" travel guide series. Then, shop as early in the day
as you can. You'll get a better selection of items, such as clothes
that haven't already been picked over and household goods that
haven't been handled (and potentially damaged) by hundreds of other
shoppers. "The Tuesday following a holiday weekend isn't when
you'll find the best inventory," Lahey says.
3. Do Your Research
Never assume you're getting the lowest prices possible at outlet
malls. If you're prepping for an outlet trip, be sure to check out
their Web site a day or two in advance for special offers. In the
Washington, D.C. area, for example, visitors to Potomac Mills
outlet mall can go to its parent company's Web site,
www.simon.com
, to print out online-exclusive coupons. Or, stop by the management
office at the mall to pick up a coupon book for additional savings
on purchases at participating stores. "These are usually given to
bus and tour groups, but they are almost always available for the
asking," Lahey says.
4. Those Deep Discounts Might Cost You Later
The siren call of outlet malls are great deals on name brands.
These discounts average about 38% more than what you'd get at a
retail store, Humphers says. However, quality may suffer for the
sake of those low prices. Outlets stores such as Saks Fifth
Avenue's Off Fifth and Neiman Marcus's Last Call sell leftover
merchandise from their full-price stores along with items made for
the outlet store, Lahey says.
Here's where things can get tricky: Clothing that's designed
specifically for outlet malls in many cases is''t the same quality
as similar items sold at retail value, according to a Cheapism.com
study
conducted last year, which tested the quality of outlet versus
retail goods. Some brands even use cheaper fabrics and
manufacturing techniques that don't hold up as well. So, spending
$50 on a silk-blend blouse from a high-end outlet store isn't
really a deal if you have to replace it a year later. "If you're
buying something like a sweater or jacket and the thickness of the
material is important to you, then you should consider buying
retail," Levitte recommends. (See our story:
Cheap Clothing Is a Costly Mistake
.)
5. Get the Biggest Bang for Your Buck
Think strategically: If you're looking to stock up on low-priced
items for fall or winter, you should visit an outlet mall in early
spring, when out-of-season merchandise is likely to be on sale,
says Clementine Martin Illanes, a retail strategist with
consultancy Kurt Salmon. Shoppers who frequent outlet malls often
have this tactic down pat.
Happy shopping!
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.