With the promise of big savings on quality name brands, outlet stores are booming in this sour economy. But are they delivering on that promise? To find out, Consumer Reports surveyed 17,753 readers who made nearly 39,000 outlet store visits.
The results reveal the winners and losers among 58 major outlet brands included in the survey, which took into account key factors such as value, quality, selection and service. CR interviewed experts and sent a reporter undercover to buy $2,000 worth of shirts, slacks, socks, sweats and other items for checks in its textile lab.
Overall, 60 percent of outlet shoppers said they were completely or very satisfied with their experience. Respondents gave high marks to a range of stores. Among the top choices: Jockey and Carter’s (clothes, underwear, Harry David (food, Corningware (kitchenware, Izod and Van Heusen (clothes and Coach (leather goods and other accessories.
Almost three-quarters of shoppers described the merchandise quality as «excellent» or «very good.» About the same percentage rated outlet merchandise equal in quality to the same brands sold at regular stores. Eleven percent judged outlet goods as «slightly poorer» but said the differences were so insignificant that they were barely noticeable. Specifically, Banana Republic, Brooks Brothers, Gap, J.Crew and Pottery Barn were cited more than other stores for selling goods inferior to regular store stuff.
Outlet store goods are designed to sell for less than retail goods, so shoppers can’t assume they’re exact copies. When CR shopped for look-alikes at outlets and full-price stores, its textile expert confirmed that the outlet versions were tweaked. The regular retail items were usually a trifle better because of construction details or better materials. But in most cases, the outlet versions were fine to superior.
For example, CR purchased a ladies Polo Ralph Lauren classic oxford shirt at a retail store for $76.50 and at an outlet for $40. The savings was roughly 48 percent. The quality of both was quite similar. Both shirts were made in China and had similar fabric and construction, plackets and placket finish, and buttons. The only notable difference was a yellow fabric backing on the outlet shirt’s collar. «It’s a higher-end finish that added a nice touch,» CR’s expert said.
Sixty percent of the shoppers surveyed said outlets offered exceptional value, and 30 percent said prices were much lower than sale prices at regular stores, especially at Coach, Haggar, Izod, Van Heusen, and VF Outlets (the parent company of dozens of apparel brands.
However, the top complaint among respondents about outlet shopping was higher-than-expected prices, cited in one of five store visits. Stores more likely to be called out for high prices: Bose, Calvin Klein, Casual Male XL, Gymboree, J. Crew, Levi’s, Nike, Polo Ralph Lauren, Pottery Barn, Samsonite and Sunglass Hut.
For bargain hunters looking to improve their outlet experiences and save even more, CR offers the following tips: Go to the center’s management office or call to find out about unadvertised sales. Shop early in the day or at dinnertime.Think twice about shopping during the holidays. Join shopper programs like Premium Outlets’ VIP Shopper Club (free or Tanger Club ($10 for exclusive promotions and coupons. Seek website discounts. Some centers offer seniors and military deals.
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