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Key takeaways
- Outlet stores are built on the promise of deals, but before committing to a purchase, it’s worth comparing prices from competing retailers.
- Clearance inventory can be hit-or-miss, but patient shoppers willing to dig through the racks can sometimes uncover the steepest discounts in the store.
- Before making an outlet purchase online, verify that the website is legitimate. Fraudulent retail websites, including phony outlet stores, have become increasingly common.
Decades ago, bargain hunters would drive miles outside major cities to sprawling outlet centers, looking to score deep discounts on designer goods that had previously been offered at full price in traditional retail stores. Today, outlet shopping is different, for better and for worse.
“Outlet prices and deals are more accessible than they’ve been in the past, because you can find these sales online,” says Andrea Woroch, a consumer savings adviser in Bakersfield, California. Another way outlet shopping has evolved: Brands now make products specifically for their outlet stores. Many of these items cost less because they’re often made with cheaper materials or have simpler construction, Woroch says.
That doesn’t automatically make outlet merchandise a bad buy, but it does mean outlet shoppers need to be a bit more strategic. “If you know what you’re getting into, [outlet products] can still be a great deal,” says Woroch. “You just want to make sure you’re not compromising quality simply because the price looks good.”
Here’s how to make sure you’re actually getting a bargain at outlet stores.
1. Compare prices
Outlet stores are built on the promise of deals, but before committing to a purchase, it’s worth checking how the item is priced elsewhere. A look at prices from competing retailers can show whether the outlet is offering a genuine bargain.
Brick-and-mortar outlets often run in-store-only promotions, says Lisa Wagner, founder of The Outlet Resource Group, an outlet consultancy.
2. Start by shopping online
Mark Cohen, a retail analyst and former director of retail studies at Columbia University’s business school, recommends browsing outlet inventory online before shopping in person, since what’s in stock can vary by store. He also recommends reading customer reviews before making a purchase.
3. Don’t skip the clearance section
Many outlets have clearance racks where discounted items are marked down even further. Don’t overlook them.
The trade-off is selection, says Wagner. Clearance inventory can be hit-or-miss, with limited sizes, off-season styles and final-sale policies. But patient shoppers willing to dig through the racks can sometimes uncover the steepest discounts in the store.
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