The guiding principle behind brand-name outlet stores is to offer consumers everything from golf clubs and electronics to women’s shoes and fancy china at discounted prices.But some consumers have questioned whether the savings are too good to be true. Where does the merchandise come from? Is it overstock, discontinued, damaged or defective? What are the exchange or refund policies if there are problems? Before beginning the outlet mall crawl, here’s what you should know.
Experts say most outlet merchandise comes from products that have not sold at the regular retail level, either because of a glut of merchandise or a change in seasons.
David Sanguinetti, chief operating officer for Florsheim Shoes, says the 50 outlet stores located throughout the country (including one in Gurnee Mills, north of Chicago) carry overstocked and discontinued items, but never damaged goods.
“Over the course of a year, most of our outlet stores will receive, on average, about 5,000 to 7,000 pairs of shoes,” Sanguinetti said. “We use our outlets to clear out items that are discontinued or sometimes, one of our bigger customers will return a large quantity of shoes to the wholesaler and we’ll send them on to outlets. We stand behind everything we sell, and we pull out anything that’s damaged.”
Shoe discounts range from 20 to 50 percent, but can go as high as 75 percent, Sanguinetti said. He adds that shopping at Florsheim outlet stores is always a better bargain than the regular retail store.
“I know the market and what the profit margins are, and prices average 10 to 15 percent lower at the outlets,” Sanguinetti said. “Some people think they can do just as well by watching the ads and then going to the regular retail stores, but the better bargain is still the outlets.”
Nancy Jeziorny, district manager for Lands’ End, says the outlet stores located in Schaumburg, Niles and Yorktown, as well as 14 other locations in Wisconsin, Minnesota and even New York, act as safety valves for too much catalog merchandise, returns and “defective” but wearable items.
“We don’t try to create a surplus, but if we budgeted for too much of a catalog item, or we have a quantity of a `quality reject’ that’s maybe one-fourth-inch too long or a slight color fade, the outlets are charged with liquidation,” Jeziorny said. “Our discounts average 10 to 40 percent off the catalog price and we’ll offer special programs where an item is 25 percent off one week, 50 percent the next and 75 percent the third week.”
Jeziorny said outlet stores do carry slightly imperfect items, but says they are all clearly marked and even stocked in a separate area of the store.
“We often can’t find the defect when customers ask us what’s wrong,” she said. “Everything is guaranteed to be the same as what is sold in our catalog.”
Housewares are another product found at outlet malls, and Jackie Greiter, who manages a Corning Revere Factory Outlet in the Huntley Outlet Mall, says “one-stop shopping” is one of the benefits of visiting her store.
“We sell our product to Wal-Mart, Target, Service Merchandise, Penney’s and Kohl’s, but there are maybe 30 different Correl patterns and we’re the only store that carries them all,” Greiter said. “Some patterns are made especially for a particular store, so we might only get that pattern if the item is overstocked and sent to an outlet. Our stock comes directly from the factory or from merchandise that’s unsold at other retail stores.”
Greiter said savings between 20 and 60 percent are available at the Huntley outlet location, with further reductions depending on directives received from the corporate level. Like Lands’ End, a small percentage of the merchandise is dented or scratched and regarded as “second quality,” but it carries the same warranty as any other product.
Free-standing stores also utilize the outlet mall strategy by selling overstock from their parent store. One example is the Nordstrom Rack, found in Schaumburg and Northbrook. Schaumburg manager Maren Strand says some of the men’s and women’s clothes, accessories, purses, and other merchandise is ordered specifically for the Rack, while other items come from the main Nordstrom store located nearby at the Woodfield Mall.
As at other outlets, January and late July are good times to find bargains.
“Actually, there’s a large quantity of men’s clothing that hasn’t sold through that comes here in January and late July, but with women’s clothing there’s more of a steady stream all year,” Strand said. “We do offer a mailing list that informs people of specific items arriving at the store so they’ll know when to shop. Typically, our prices are 50 to 75 percent off the original price.”
Much of the floor space at Nordstrom Rack is devoted to shoes, but there are also picture frames, leather goods, perfumes and accessories. Strand said the Rack avoids selling damaged goods.
But to find what you’re looking for and save money while doing so, you need to employ a strategy.
“People need to be patient and realize they might not find something they’re looking for right away,” Strand said. “Sometimes, it takes more than one trip.”
Add your name to a store’s mailing list if you tend to shop there frequently so you’ll know when new merchandise is being released or price reductions are planned. Some stores, like Lands’ End, offer some nifty online services that make shopping even easier.
“Customers can visit our Web site (www.landsend.com) where they can actually see what our overstock items are and order them,” Jeziorny said. “We have a counter that counts down the number of items left and the price changes. There’s also a program where you can enter your height, weight and size and create your personal model that helps you select Lands’ End styles and sizes that fit.”
Sanguinetti says “there are two kinds of customers, and those shopping at outlet malls are bargain hunters that require more patience.
“People who need something right now find it’s more efficient for them to buy something and pay the full price at the regular retail store,” he said. “They want it, need it and know where they can get it. Outlet shopping requires more patience, but there are loads of bargains that can really surprise people if they have the time.”
If you’d like to take a day or a weekend to do the mall crawl, here are some options:
Take Interstate Highway 94 north from O’Hare about 50 miles and your adventure can last all weekend. Outlet malls line the highway as you head north through Illinois and into southern Wisconsin. Gurnee Mills in Gurnee has more than 100 stores. Continue north, and you’ll find the Prime Outlet, located near Kenosha, formerly known as Lakeview Mall. It features most of the brand-name clothiers, housewares, electronics, and shoes stores. Just a mile or so north of there, look for the Original Outlet Mall in Kenosha. It features 80 outlets and you can preview stores there by logging on at www.kenoshaoriginaloutlet.com.
Heading west, Interstate Highway 90 goes towards Elgin and on into Huntley. The Prime Outlets at Huntley feature outlet stores ranging from Rocky Mountain Chocolate to Bose speakers.
To the east, just 60 miles from Chicago is the Prime Outlets in Michigan City, Ind. It’s four miles north of I-94 (exit 34B).
The Chicago area boasts a number of outlet stores, as opposed to malls. Check out Crate & Barrel on North Avenue in Chicago or Jefferson Street in Naperville; Lord & Taylor Clearance in Arlington Heights; Talbots in Park Ridge; and Haeger Pottery in East Dundee. Look for more at www.outletbound.com.
