Ask Angie: Outlet/Factory Stores

Gaby Meyers

What is a Factory store and what is an Outlet store?
I live in the Chicago, Il area and there is a Fashion Outlet mall with several high-end stores: Burberry, Moncler, Prada, Theory, Vince Camuto and others plus JCrew Factory and Banana Republic Factory.
I'm wondering if it's worth the trip?

9 years ago

Shopping

12 replies

Latest reply was from Karie

Tanya

Veteran

I am not Angie, but believe that the Factory stores have cheaper lines of that brand; while Outlet stores carry discounted merchandise from earlier seasons. Some stores might not make the distinction though.

9 years ago

Chris987

Veteran

It think Tanya is right, but I don't think these stores always clearly identify themselves as "factory" vs "outlet". It's a pretty important distinction because "cheaper lines" are not the same as discounted "regular" lines.

9 years ago

Traci

Veteran

My personal opinion is the titles mean little and are just chosen by the company's marketing department. These stores used to be called "Factory Outlets" and were supposed to be overruns and seconds from the factories that couldn't be sold in retail stores. The idea became very popular to a point that companies started producing clothes specifically for these stores. J Crew, for instance, seems to produce similar styles in less fine fabrications for their factory stores. Some factory outlets do seem to still carry overruns and seconds, but it doesn't seem to be the norm anymore.

9 years ago

Gaylene

Veteran

I agree with Traci. A factory outlet used to be a small store tucked away in an obscure location where higher end brands could sell off their overruns and misses without affecting the image of their flagship stores .

The growth of low-cost, fast fashion chains; consumers' love for "bargains"; and a growing interest in luxury labels resulting in an explosion of fakes saturating the marketplace made higher end brands realize they were sitting on a potential goldmine. The flagship brand could remain intact to provide the sizzle, while the discount line would let the brand compete in the booming low-cost fashion market by appealing to a whole new segment of consumers.

Developing a second line, though, is vital to this model of retailing. First, it is obvious the old concept of selling discounted overruns and misses couldn't come anywhere close to meeting the demands of multiple "factory outlet" stores spread around the country. Second, the sizing had to adjusted to fit the average factory outlet customer--not much money to be made in stocking only 00 sizes in a discount store. Third, the luxury brands had no intention of disturbing their prime customers who would not be amused at seeing their $$$$$ handbag being sold at 70% off in a discount outlet a few months later.

So, the bag, shoes, or jackets you buy in a factory outlet are probably made by the same overseas manufacturers who make other discount brands. The items in a factory outlet are unlikely to have ever been sold in the "regular" flagship store, although some companies do trickle down a few items to keep the illusion alive. Finally, it's probably not reasonable to expect the same attention to detail, the fabrics, and the quality that is the hallmark of the brand; instead, what you are buying is a legally sanctioned facsimile--like a print of well known piece of art. But, hey, put the print into a frame and you get to enjoy Van Gogh in your apartment instead of a museum.

9 years ago

always trying

Veteran

Of course they are going to tell you that the merchandise is not the same. But there is so much, and almost all is made in the same factories in the same countries. There still remains some very high end, very exclusive stuff, but for the most it is all the same.

9 years ago

Angie

(website)

Fashion Stylist

Sounds like you are in good hands with these great responses, Gaby.

9 years ago

kkards

Veteran

Many years ago, I worked for the outlet division of a national women's chain. Even then only about 10% of what we sold was from the "regular" stores. We had a separate buying and planning team. Very little was manufactured in the same factories. I will tell you that we made more money than the mother brand.

9 years ago

Barbara Diane

Veteran

First, the stores at the outlet you are looking at shopping at are more high end than most outlets. There is an outlet like that an hour away from me, but I haven't checked it out yet. This is just about the outlets I shop at.

Maybe it is because I wear plus sizes but I often have better luck at them.

I have been in Nordstrom and heard SA's discussing pulling items to be "Racked". I asked, and they said that the items were going straight to Nordstrom Rack. Straight from the store. I have found items that I purchased for full price at Nordstroms at the Rack.

At the rack I often find something fab that is marked $500+ I have no idea if they really were $1000+ and in the store to start.

However, I find very little here, and a lot of the items seem quite low level. Much lower than at the Talbots outlet, for example. There are often nice shoes, but never what I need in my size.

At the Talbots outlet I find both outlet specific and from the store clothing. I find the quality to be similar to the stores, and I purchase mostly here.

The Eileen Fisher outlet has clearly delineated sections, if you ask. Regular, full price current items, items that were excellent sellers in the past and were brought back for the outlet, and clearance items. I don't know if the clearance items are from all areas or not. Then during the year there are further sales and sample sales. I have found some wonderful things here. A long wool open topper in an interesting variegated gray for under $150. A marbled black and white sweater for under $50.

At the rack I often find something fab that is marked $500+ I have no idea if they really were $1000+ and in the store to start.

At Saks I bought an expensive crystal liquid soap dispenser and soap dish. Elegant splurge, and I had no idea how much better it would work. It gets every drop out of the liquid soap. Also a beautiful pair of cashmere gloves.

I imagine that what everyone said previously is true. I just wanted to add my experience.

9 years ago

Gaby Meyers

Active Member

Thanks ladies! So what I think you're telling me is that I should pretty much ignore labels, Factory vs Outlet and for the most part the merchandise is specifically made for these stores with probably not as nice fabrics, attention to details or quality. I'm a little miffed that luxury brands like Burberry and Moncler are selling cheaper versions. I agree I would not like to see something that I paid big bucks for reduced at an outlet unless it was past season, but I also don't like the idea of luxury brands doing cheaper knockoffs, I kinda ruins the mystique of owning such brands. Have I got this right?

9 years ago

kkards

Veteran

if your interested....
http://www.thefashionlaw.com/h.....ce-lawsuit

http://insight.kellogg.northwe.....ting-sales

9 years ago

Anonymous

All I know is that the few times I've been in outlet stores, I've left with nothing because I wasn't impressed with the merchandise.

I'd rather wait for good sales at the regular stores.

9 years ago

Karie

(website)

Veteran

Just chiming in to add my experiences:

Once when in a BCBG outlet store, I inquired about the merchandise and was told that the items were BCBG retail store items (overstocks, and what didn't sell) from 2 seasons ago.

JCrew Factory either sometimes sells items that were in their retail stores, or different items made from the same fabrics. For example, once I saw a dress at JCrew that I liked but they didn't have it in my size. The next summer I saw the exact same fabric in what I think was a slightly different dress at JCrew Factory.

9 years ago

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