Quote:
Originally Posted by Swayze11
I always thought the term "outlet mall" was the stores have no middle man, therefore they sell things for cheaper. I went down to Florida a few weeks ago and they had tons of Outlet Malls and most things were 50% off what you would pay normally.
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I was listening to NPR last week and they had a guest on talking about outlet malls. Apparently most companies produce 2 lines of products - the normal ones, and the outlet mall versions. You guessed it - most of the stuff in the outlet malls is lower quality.
The guest said you could tell the difference by looking at the product ID codes - it looks like the identical thing from the regular store, but the ID code doesn't match.
I've heard about Walmart and Canadian tire doing similar things - separate cheaper lines of a product that look the same but cost less.
NPR Link
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ZARROLI: Davidowitz says that as outlet malls have proliferated, the kinds of merchandise they offer has changed. He says outlet stores once sold overstock goods, or slightly irregular products, but now there are so many outlet malls that there aren't enough irregular products to go around.
Mr. DAVIDOWITZ: Now you've got chains like Dress Barn and (unintelligible). They've got hundreds and hundreds of outlet stores. It's a business. It's institutionalized. Regular merchandise is in there, and it's really a marketing gimmick as opposed to all these overruns and deals.
ZARROLI: Davidowitz says many of the biggest retailers, like the Gap and Ralph Lauren, now make products just for outlet stores.
Mr. DAVIDOWITZ: A lot of times, merchandise is made more cheaply for the outlet stores, and, of course, it sells for less. But it's not the same quality. So you're paying less, and you're getting less.
ZARROLI: Davidowitz believes many consumers have caught on to this, which is why sales at many outlet malls have been flat in recent years. NPR contacted several big retailers that have outlet stores, including Coach, Ralph Lauren, and Timberland. All declined to comment or didn't return calls.
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