Researchers analyzed 40 major brands, ranging from Adidas to Zales, finding that retailers frequently use thinner fabrics, synthetic materials, and cheaper construction techniques for their outlet-specific inventory. According to Jennifer Barger, Director of Content at Consumers' Checkbook, companies have quietly transformed these stores into a separate distribution channel without offering clear disclosure to the public. Brands often employ misleading "Compare At" pricing, referencing the cost of higher-quality mainline merchandise to inflate the perceived value of cheaper goods.
The Hidden Reality of Outlet Mall Bargains
Shoppers hunting for deals at outlet malls are often falling for a carefully curated illusion. A three-month investigation by the nonprofit Consumers' Checkbook reveals that more than half of the goods sold at major brand factory stores are not discounted retail items, but lower-quality products manufactured specifically for these locations.
Some retailers, such as J. Crew Factory, Coach, and Levi’s, produce exclusive lines for their off-price outlets, while others like Bath and Body Works offer little to no actual price advantage over their standard stores. Only a select group of retailers, including Burberry and Pottery Barn, continue to stock genuine overstock or past-season items. To navigate these stores, experts suggest ignoring MSRP tags and inspecting labels for subtle markings, such as the small diamonds used by J. Crew, which differentiate factory-made goods from mainline stock. Consumers are encouraged to compare prices online or consider second-hand platforms to secure authentic high-quality items at a true discount.
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