- [Voiceover] Gap. Nordstrom.
Maybe even Neiman Marcus.
Chances are, you likely know of at least one
of these clothing stores.
But more specifically, you're probably more familiar
with one of their outlets,
you know, for their great deals
and the huge discounts.
As a fairly new clothing enthusiast,
I wanted to find out if there was any difference
between retails stores and their outlet counterparts.
And after a little research,
I was surprised to find quite a few sources
that not only said we weren't getting a bargin,
but that we've been unknowingly buying
lower quality products.
My name's Westin, and I wanna find out
if we're really getting a deal from outlet stores.
My questions about this started when I read an article
by Buzzfeed News Reporter Sapna Maheshwari.
I figured speaking with Sapna
would be the best place to start.
So, the difference between outlets and retail,
in terms of the product that's coming out,
what is the difference?
- So, the difference ranges from brand to brand.
Traditionally, it used to be excess goods.
And so, it was actual items from the full line stores
that wasn't sold for whatever reason
and then made it to the outlet.
Because outlets have gotten so big,
there are goods that are made for the outlet specifically.
And sometimes, well, more often than not,
they're of lesser quality.
- [Westin] In this t.v. news footage,
a fashion consultant was able to pick out
the lower quality outlet vs
the higher quality retail product.
Now, this has led some consumers to feel
that the MSRP,
or the manufacturer's suggested retail price,
is kinda misleading
in that a lot of people believe
they're buying retail quality products at a discount
when they really aren't.
It was this very idea
that led four members of congress
to request the federal investigation by the FTC
of what they considered as deceptive outlet practices.
Not to mention, a class action lawsuit against Gap,
Banana Republic,
and Neiman Marcus by a California resident.
But, then I got to thinking,
maybe we just don't have the full picture
of what's going on in the clothing industry.
So, I figured it would be best to speak
with someone who truly knows the fashion industry,
the president of the California Fashion Association,
Ilse Metchek.
- Are they getting a deal when they buy a Coach bag
at a Coach outlet and not at Macy's or at Nordstrom's
or at Neiman's?
Sure, because the outward fabrication
of the Coach product is the same.
They're not gonna make a lesser,
plasticized cover.
They may not have as many findings,
that is the gold rings, the buckles,
and the things like that.
- For the outlets,
is it mostly manufacturer factory to outlet goods
that are going?
- For the larger brands, absolutely.
They all are creating outlets in and of themselves.
Now, they have separate buyers
who go into the market for things
that fit into the outlet price point.
When you're going into a Coach,
you will see certain things have an MSRP
because they may be things that didn't sell
at the regular price,
but you won't see it on things that were made exclusively
for the outlet stores.
- So, if I go into an outlet, and I see MSRP,
I can assume that that came from the main retail branch?
- Exactly.
That came from the main retail branch
and was an existing pattern.
- Got it.
Thankfully for us, Coleen Tressler,
a consumer education specialist from the FTC,
has a few tips to make sure we get the most
out of outlet shopping.
- [Colleen] You can check out with the sales associates.
But specifically ask them, you know,
"are you selling merchandise from your non-outlet stores?"
And do comparison shopping with apps
to see what an outfit, perhaps,
might cost in the non-outlet store
and then, you'll know that price.
And when you go, if you like the quality
that the outlet is providing,
you could save a lot of money.
If you're looking for something trendy,
maybe you'll wear it for a couple of seasons,
an outlet purchase may be fine.
If you're looking for an investment piece,
you may wanna shop at the non-outlet retail store.
The other thing you can do
is go online and check reviews from other shoppers.
See what they said about certain stores
at the outlets and what they thought of 'em.
- The saying "you get what you pay for"
unfortunately applies to the outlet world.
But, at least now you have a better idea of what
to expect from outlet stores
and ultimately can decide when outlet shopping
may be right for you.
40% off.
MSRP?
Sweet.
(upbeat music)