How Much Do You Actually Save at Outlet Malls?

Moneyland quotes a "study" (in quotes because the researchers themselves admit it isn't scientific)
that tries to answer the question of how much you save by shopping at outlet malls. A summary of their findings:

Overall, outlet prices were nearly 30% less expensive. For specific merchandise from certain brands, outlet mall prices were substantially cheaper than their retail counterparts. A five-pack of Banana Republic men’s dress socks cost $20 in the outlet mall—and $52.50 (61.9% more) at the Banana Republic store in a regular mall. As for children’s apparel at Gymboree, outlet mall prices were more than 40% cheaper when it came to girls tights and holiday dress, as well as boys pants, argyle sweaters, and button-down shirts.

These results are in line with a previous study that they also quote:

But the discounts found in the Cheapism study are pretty much on par with a 2005 in-depth report on outlet malls conducted by a pair of marketing professors. In their study, the average price discount across all outlet stores was 24% compared to their standard retail equivalents.

I shop at an outlet mall a couple times per year, and here's my take on the issue:

• I shop at an outlet that's about two hours from our house. We stop there only when we are going by anyway on some other trip. The cost savings are not enough to justify driving there and back unless you buy a TON of merchandise (which we don't.)


• For the most part, we shop at the sports stores (Nike, Under Armour, Adidas) for items we need for refereeing or for personal use.


• Compared to the prices we could get at local stores (like Dick's Sporting Goods), the outlets are a good 25% cheaper.


• That said, this is IF they have the same items as Dick's -- which they often don't. The merchandise in the outlet lags what's going on at "regular" retail by a couple of months it seems, so stuff that Dick's has in January isn't at the outlets until March.


• The merchandise at outlets is top-notch. This is what I've found to be the case at most outlet stores. For the most part, the days are gone when outlets were for closeout items/designs that no one wanted.


• Also gone are the days when the outlet merchandise was 80% off regular retail prices. As I said, 25% is more likely the norm.


• You can find some GREAT deals at outlets if you're lucky and willing to dig. Almost all of the outlet stores have clearance racks, and if you're willing to take time and go through them, you can often find some things you like at very good discounts.


• And while the selection at an outlet isn't as good as a normal retail store, they do often have some things that I haven't seen at retail in my area. They often have more of the specialty (golf-related or running-related) merchandise that the big box retailers don't carry en masse.

As an example, here are a couple purchases we recently made at our outlet mall:

• I got a Nike running shirt for $35. I saw it at Dick's a couple weeks later for $55. Same exact shirt.


• My son purchased an Under Armour fleece for $30 that was normally $65. We found it on the clearance rack and it just happened to be his color (red) and size.

So, that's my take on outlet malls. What's yours?

How Much Do You Actually Save at Outlet Malls?

 

Moneyland quotes a "study" (in quotes because the researchers themselves admit it isn't scientific)

that tries to answer the question of how much you save by shopping at outlet malls http://moneyland.time.com/2011/12/02/how-much-do-you-actually-save-shopping-at-outlet-malls/ A summary of their findings:

 

Overall, outlet prices were nearly 30% less expensive. For specific merchandise from certain brands, outlet mall prices were substantially cheaper than their retail counterparts. A five-pack of Banana Republic men’s dress socks cost $20 in the outlet mall—and $52.50 (61.9% more) at the Banana Republic store in a regular mall. As for children’s apparel at Gymboree, outlet mall prices were more than 40% cheaper when it came to girls tights and holiday dress, as well as boys pants, argyle sweaters, and button-down shirts.

 

These results are in line with a previous study that they also quote:

 

But the discounts found in the Cheapism study are pretty much on par with a 2005 in-depth report on outlet malls conducted by a pair of marketing professors. In their study, the average price discount across all outlet stores was 24% compared to their standard retail equivalents.

 

I shop at an outlet mall a couple times per year, and here's my take on the issue:

 

I shop at an outlet that's about two hours from our house. We stop there only when we are going by anyway on some other trip. The cost savings are not enough to justify driving there and back unless you buy a TON of merchandise (which we don't.)

 

For the most part, we shop at the sports stores (Nike, Under Armour, Adidas) for items we need for refereeing http://www.freemoneyfinance.com/2011/11/soccer-referee-earnings-review-and-update.html or for personal use.

 

Compared to the prices we could get at local stores (like Dick's Sporting Goods), the outlets are a good 25% cheaper.

 

That said, this is IF they have the same items as Dick's -- which they often don't. The merchandise in the outlet lags what's going on at "regular" retail by a couple of months it seems, so stuff that Dick's has in January isn't at the outlets until March.

 

The merchandise at outlets is top-notch. This is what I've found to be the case at most outlet stores. For the most part, the days are gone when outlets were for closeout items/designs that no one wanted.

 

Also gone are the days when the outlet merchandise was 80% off regular retail prices. As I said, 25% is more likely the norm.

 

You can find some GREAT deals at outlets if you're lucky and willing to dig. Almost all of the outlet stores have clearance racks, and if you're willing to take time and go through them, you can often find some things you like at very good discounts.

 

And while the selection at an outlet isn't as good as a normal retail store, they do often have some things that I haven't seen at retail in my area. They often have more of the specialty (golf-related or running-related) merchandise that the big box retailers don't carry en masse.

 

As an example, here are a couple purchases we recently made at our outlet mall:

 

I got a Nike running shirt for $35. I saw it at Dick's a couple weeks later for $55. Same exact shirt.

 

My son purchased an Under Armour fleece for $30 that was normally $65. We found it on the clearance rack and it just happened to be his color (red) and size.

 

So, that's my take on outlet malls. What's yours?

Comments

[Matt]

You need to know your prices.

I have gotten some good deals and things I wanted.

Then again in some cases it was OK to no way.

[retirebyforty]

We went shopping last weekend and got some pretty good deals.
I got a nice jean from Banana for around $40 and a nice polo for $22. They are not dirt cheap, but I will wear them very often so I think it is well worth the price.

[FMF]

Matt --

Exactly....