Outlet vs. retail: Which has the better deals?


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SALT LAKE CITY — Consumer reports say sales at outlet malls are expected to top $42 billion this year. But can you really get a better bargain at the outlets? The KSL Investigators decided to find out by going on a shopping spree to compare outlet and retail stores.

We hit about a dozen stores at both the outlet mall and the regular mall to compare cost and quality.

At the Nike outlet store, we found a pair of Air Pegasus running shoes were $60. They were last year's model, but the best price anywhere else was $90 for the same shoe.

Coach outlet had a purse that came from a regular retail store. After discounts, it was $150. It was an older style, but still ended up being more than half off a similar bag at the Coach retail store ($325).

At the J. Crew outlet, we found a tie on sale for $25, down from an original price of $42. It seemed like a great deal, but a shopping expert could tell immediately which tie came from the outlet store and which one came from the retail store.

"This is by far a superior fabric," said Holly Stone, an image stylist who consults for KSL's "Studio 5 with Brooke Walker."

"It's going to hold up longer, it's going to wash better, and it's going to be the tie that you will keep longer."

Stone said outlet stores sell cheaper-priced items, and sometimes the quality suffers.

As for that original $42 price tag on the outlet version, it might be there to make consumers think they're getting a good deal.

"I don't know if it ever would have sold at that regular price at an outlet store," Stone said. "This is true marketing, and this is where it might be a little deceptive."

A group of congressmen seem to think so too. They sent a letter to the Federal Trade Commission earlier this year, asking them to investigate "deceptive reference pricing." The congressmen also claim outlet stores are misleading consumers by selling items manufactured exclusively for outlets. Analysts estimate it's about 85 percent of merchandise.

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At some stores like the Gap and Banana Republic, that percentage could be much higher. KSL Investigators were told by sales representatives at both stores that not a single item comes from a regular retail store.

"They have different manufacturers, different patterns, basically the only thing that's the same is the name," a sales representative with a Banana Republic retail store said.

But sometimes there were actually better deals and better quality items at the outlet stores. A denim jacket from Baby Gap was $20 at the outlet store, versus $30 at the regular store. The better quality jacket seemed to come from the outlet store.

"You look at the overall texture of the jacket, it's a little more sturdy of a jacket," Stone said when she compared the two.

Two very similar looking white blouses from Banana Republic were both on sale for $35 at the outlet and the retail stores. But again, the outlet version was better quality.

"Typically you would expect this at the retail store and this at the outlet," Stone said, gesturing to each item. "This (the outlet version) is a better made shirt for some reason."

After hours of shopping and comparing similar items at both the outlet stores and the retail stores, the total for merchandise at the retail stores was $1,139.85. The total for merchandise at the outlets was $662.90 — a savings of $476.95.

We found you really can save a lot of money at the outlets, especially if you know what you're getting into.

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Debbie Dujanovic

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