Outlet Stores: Worth the Trip

Readers rate 58 outlet stores for value and more.

Illustration by Dan Page

If there was ever a time consumers could use a bargain, this is it—so despite the sour economy, the $30 billion outlet industry is thriving. "When the economy turned south, everyone and their brother mustered all the discipline they could to save money," says Linda Humphers, editor of Value Retail News, a trade publication. "People say ‘I've got to cut back but don't want to shop at Walmart.' Outlets represent value."

But are outlets delivering on that promise? To find out, we surveyed 17,753 readers who made close to 39,000 visits to outlet stores. The result is our Ratings of value, quality, selection, and service at 58 of the nation's biggest outlets. We also interviewed experts and hit the outlets ourselves, buying $2,000 worth of shirts, slacks, socks, sweats, and other items to examine in our labs.

The results show that some outlets offer serious bargains on well-made merchandise sold by a knowledgeable and solicitous staff; others stock so-so goods at so-so prices. Read on to see what our research revealed.

Readers like a range of stores
Among the top choices: Jockey and Carter's (clothes, underwear), Harry & David (food), Corningware (kitchenware), Izod and Van Heusen (clothes), and Coach (accessories).

Shoppers are basically pleased
Overall, 60 percent said that they were completely or very satisfied with their experience. That's below our readers' scores for general-merchandise stores like Costco, Kohl's, and Target but similar to scores for fast-food restaurant chains and supermarkets. Eight percent of shoppers complained about the store environment, including crowds, few fitting rooms, unattractive stores, and confusing layouts.

Prices are praised—and criticized
Sixty percent of shoppers said outlets offered exceptional value, and 30 percent said that prices were much lower than sale prices at regular stores, especially at Coach, Haggar, Izod, Van Heusen, and VF Outlets (the parent company of dozens of apparel brands). Yet the top complaint about outlet shopping was higher-than-expected prices, cited in one of five store visits. Stores more likely to be called out for high prices: Bose, Calvin Klein, Casual Male XL, Gymboree, J.Crew, Levi's, Nike, Polo Ralph Lauren, Pottery Barn, Samsonite, and Sunglass Hut.

The goods are good
Almost three-quarters of shoppers described the merchandise quality as excellent or very good. About the same percentage rated outlet merchandise equal in quality to the same brands sold at regular stores; 11 percent judged outlet goods slightly poorer but said the differences were barely noticeable. Two percent thought outlet lines were "substantially poorer" than goods sold elsewhere. Specifically, Banana Republic, Brooks Brothers, Gap, J.Crew, and Pottery Barn were cited more than other stores for selling goods inferior to regular-store counterparts.

Selection and service could improve
Readers said one-third of the outlet stores they visited had a narrower assortment than did regular stores. Nineteen percent of shoppers termed selection fair, poor, or very poor. The exceptions: Bose, Carter's, Harry & David, and Le Gourmet Chef, all of which rated higher for selection.

Twenty percent of respondents called outlet service fair, poor, or very poor. Harry & David was alone in earning a top score for help.

Face-off: Outlet vs. retail clothes

Outlet goods are designed to sell for less than retail goods, so don’t assume they’re exact copies. When we shopped for look-alike items at outlets and full-price stores and turned them over to our textile expert, she confirmed that the outlet items were tweaked.

But does quality suffer? The regular retail items were usually a trifle better because of construction details or better materials. But in most cases, the outlet versions were fine, and a couple beat their retail version. Your experience may depend on how hard you are on clothes, how finicky you are about styling, or how happy you are saving money: We saved up to 61 percent on outlet items.

Eddie Bauer cotton chino slacks
Retail $49.50 Outlet $35 Outlet savings: 29 percent The winner: Retail

Both pairs, manufactured in the Dominican Republic, were well made. But the full-price pants had a stiff “buckram” lining in the waistband (for shape retention), bias binding on the crotch and fly seams (to prevent fraying), and two small coin/key pockets. The retail pants also felt smoother, and their fabric looked more densely woven.

Classic Oxford Outlet Version	Classic Oxford Retail Version
Polo Ralph Lauren classic oxford shirt Retail $76.50 Outlet $40 Outlet savings: 48 percent The winner: Tie These shirts, made in China, have similar fabric and construction, plackets and placket finish, and buttons. The only notable difference is the yellow fabric backing on the outlet shirt’s collar. “It’s a higher-end finish that adds a nice touch,” our expert says.

Polo Ralph Lauren crew-neck T-shirt
Retail $22.50 Outlet $15 Outlet savings: 33 percent The winner: Tie

Both are classic T-shirts made in China. They’re similar in thickness, with reinforced taped seams at the neck, overlocked stitching, and the same logo. The only obvious difference: The outlet shirt has a sewn-in label at the neck; the retail shirt has the words printed inside.

Guess low-rise denim jeans
Retail $89 Outlet $50 Outlet savings: 44 percent The winner: Retail

The retail women’s jeans, made in Mexico, are 98 percent cotton; the outlet version, from China, 62 percent cotton. “To a denim purist, denim means the look and wearability of cotton,” our expert said. The retail jeans also have 2 percent spandex, more rivets, a zipper that locks in the up and down positions (vs. only on down for the outlet pants), sturdier seams, and bar tacks for added strength on the rear pockets. With 38 percent polyester, the outlet jeans ought to wear better. But polyester isn’t true elastic as is spandex, so the material in the rear end and knees could eventually sag.

Lucky Straight-Leg Outlet Version	Lucky Straight-Leg Retail Version
Lucky straight-leg denim jeans Retail $100 Outlet $39.50 Outlet savings: 61 percent The winner: Tie The outlet jeans are 100 percent cotton; the retail version is 98 percent cotton and 2 percent spandex, which will help the jeans hold their shape a bit better. They have many similarities: the same bar tacks, yoke, pockets, belt loops, pocket rivets, and a zipper that locks in only the down position. The pricier jeans have “Lucky You” alongside the zipper on its outside (visible if you pull down the zipper), and “Lucky Me” on the inside. The outlet jeans have only “Lucky You.” The full-price pair has intentional holes in the fabric—time consuming to produce and resulting in more expensive jeans that might not wear as well.

Tommy Hilfiger fleece sweat pants
Retail $37.12 Outlet $21 Outlet savings: 43 percent The winner: Retail

Our expert had no trouble picking out the more expensive women’s pants. The full-price sweats, made of cotton, polyester, and spandex, had rear pockets (missing on the all-cotton outlet version), bar tacks on the front pockets for durability, back-waist darts for a better fit, and a colorful ribbon on the interior waistband. Both were made in China.

Coach water-buffalo-leather ID wallet
Retail $128 Outlet $39 Outlet savings: N/A The winner: Retail

The full-price wallet, made in India, has details that will probably help it last longer: a fabric lining and flat stitched leather edges around the perimeter. The outlet wallet, made in China, has small flaps of leather folded over, held down with an adhesive, and stitched in place. Over time, its edge could become dog-eared. Although both are made of water-buffalo leather, the full-price wallet feels more supple. (Prices cannot be compared directly to each other because the retail wallet was sold with a full-size wallet.)

Gap Boxers Outlet Version	Gap Boxers Retail Version
Gap cotton boxer shorts Retail $10 Outlet $5 Outlet savings: 50 percent The winner: Outlet The outlet boxers, made in Indonesia, have bar tacks, denser and neater stitching, and nicer shaping in the leg due to an extra piece of sewn-in fabric. Stitching on the retail boxers, made in China, is sloppy, with hanging threads on the seams.

Gap cotton-knit polo shirt
Retail $17.70 Outlet $15 Outlet savings: 15 percent The winner: Outlet

A photo finish. The full-price shirt, made in Bangladesh, has two plastic buttons (vs. three metal ones on the outlet), and the placket base is sewn in a rectangular pattern, which our expert thought was less sturdy than the reinforced X-shaped pattern on the outlet version. The outlet shirt, made in Malaysia, is slightly thinner. The neck and collar are reinforced with woven tape (for added strength). The preshrunk material is less likely to shrink over time. A plus in the pricier shirt: knit seam tape to reinforce the shoulders and collar.

Gap crew cotton T-shirt (two-pack)
Retail $24.50 Outlet $11.69 Outlet savings: 52 percent The winner: Tie

The outlet version, from Indonesia, is a classic type. The retail version, from India, is more stylish. The outlet shirt has seam tape to reinforce the neck and shoulders; the other doesn’t, so it is more apt to stretch. But it’s also more form fitting because of the 5 percent spandex. The neck is narrower and decorative, like that of a stylish T-shirt.

Brooks Brothers ribbed calf-high dress socks
Retail $18 Outlet $7.20 Outlet savings: 60 percent The winner: Retail

A decisive win for the pricier Italian-made hosiery, which is 78 percent cotton, 20 percent nylon, and 2 percent Lycra, because it has a flat toe seam. The outlet socks, made in China of 80 percent cotton and 20 percent nylon, have a raised seam, which could cause irritation if the sock bunches up.

Brooks Brothers wool gabardine dress slacks
Retail $148 Outlet $93.60 Outlet savings: 37 percent The winner: Retail

The full-price pants, made in Egypt, have more details and neater sewing that over time will make a difference: denser stitching on the waistband and around the button holes, for example. They also have two more belt loops. The bar tacks on the outlet slacks, from Thailand, created a pucker.

Brooks Brothers tie Outlet Version	Brooks Brothers tie Retail Version
Brooks Brothers tie Retail $58.50 Outlet $44.55 Outlet savings: 24 percent The winner: Outlet Although they have a similar lining and inner-facing, the American-made “of imported fabric” outlet version is pure silk; the retail version, made in the U.S. of fabric woven in England, is 52 percent silk and 48 percent cotton. “Pure silk drapes better and is more supple,” our expert said.   Copyright © 2006-2011 Consumers Union of U.S., Inc. No reproduction, in whole or in part, without written permission.