Jul 30, 2013

Outlets

Outlet stores are a curious facet of American consumerism. Traditionally, outlet stores or Factory Stores, were connected directly to the merchants factory, as a way to distribute their products directly to customers. Perhaps the best example is the L.L. Bean outlet in the company hometown of Freeport, Maine, which has remained open in the same location since 1917.

From the outside, this looks like a store, but the L.L. Bean outlet is actually the size of a small European nation. 
What has your experience at outlets been? Tell us in the Comments section of this article.




"I swear these didn't just fall off of a truck somewhere...and if you keep your mouth shut...I'll give ya 20% off see?"
In the later half of the 20th century, more and more companies started opening so called "factory" stores, often offering overstocked, slightly flawed, or damaged goods at a large markdown over traditional retail pricing. This, has has the effect of associating Outlet goods with sub-par quality, and an interesting example of price discrimination (The economics concept of offering the same good at different prices for different consumers to increase overall sales). Outlets made a major transition in the 1990's shifting towards a more direct marketing approach, with less of an emphasis on overstock or liquidation.

Today, outlet stores are often clustered in "Outlet malls", managed by a central agency, such as Tangers or Simon "Premium Outlets". These malls are specifically located in difficult to get to locations, relatively far from urban centers. The intent here, is to not lure away customers from shopping at regular retail locations. This model also provides the stores with large square-footage, which is often an issue for more centrally located retailers.

A 2004 study conducted by INSEAD described this strategy:
"Manufacturers can use outlet retailing to implement simple market segmentation through dual distribution. Highly service-sensitive consumers can shop at the primary retail [stores], where they will pay higher prices but get better service. Less service-sensitive consumers can shop at the outlet store, where lower service levels but also prices are available"
-A Survey of Outlet Mall Retailing: Past, Present, and Future David A. Soberman, INSEAD 2004


Additionally, the effect of  driving 1+ hour(s) to a store has the psychological effect of sunk-cost fallacy,  where leaving empty handed seems like a "waste" after the time and energy invested in traveling there.

So, let's examine what sort of products we can discover on a trip to the outlets nearest me. Will I find quality items at ridiculously low prices? Or perhaps, lower quality goods designed specifically to be dumped?

Coincidentally, this is also an outlet


Brooks Brothers 



Brooks Brothers outlets are called "Factory Stores", despite the only real factory store being in Garland, NC where Brooks makes their USA fabricated shirts.

The outlets however, are essentially a retail store for the "346" brand, which is more or less a chintzier version of Brooks Brothers clothing. Specifically, lower quality fabric is often used, the designs are not as traditional, the fits are typically different, and the quality control is probably lower.

Yahoo! style writer "DivineCaroline" describes these offshoot brands:
"These lines carry the brand name, but they're made with lower-quality fabrics and cheaper construction techniques. The companies depend on customers' inability to tell the difference between the quality of real designer merchandise and the lower-quality knockoffs carrying the same label. The knockoffs may be cheap, but that cheapness comes at the expense of quality. "

Pretty much the entire store carried signs specifying  "40%" off, but consider this...
If 346 is ONLY sold at outlets, and it is ALWAYS 40% off, then the concept that this is a "sale" is meaningless, and every single tag price is simply inflated. I'm pretty sure enough people are just bad enough at math for this to work as a successful business model.

Now, there is a scattering of mainline BB stuff to be found, and when they have their occasional real sales, you can score it at very good prices. I would suggest taking this route when shopping here. (Specifically, when the dress shirts pictured below were ~65-70% off, I was able to score some good buys)

Also, take a look at the interior decoration and compare to my photos from the Flagship store in Manhattan.
It's no wonder they have to charge more there...

The store contained sport shirts, dress shirts, a small selection of suits, jackets, outerwear, socks, belts, and the usual BB garb.
Here are a mix of dress shirts, some 346, some from the main line, and some from the Golden Fleece line.
In the past I've found shirts in my size that I liked (marked down to as little as $20 ea), but this time, no luck. Note, the GF dress shirts (Normally $200) are still $100 here after discount.

Choices in my size were unfortunately very limited this time around
346 Solid polo shirts. Discounted only when you purchase 2 or more
"346" Ties. A great selection, as they copy pretty much every design from the mainline, but are noticeably thinner . These were about $40 ea. after discount.









My problem with BB factory stores has consistently been sizing. Especially with pants and shorts, which they seem to refuse to offer in anything smaller than a 34 waist. If they improved their selection here, I might have considered buying more than a single polo.

As for what I bought...

I was on the lookout for slim-fit mainline polo shirts, but they really didn't have many in stock at all. I spied this 346 model, and after a thorough inspection, decided to try it.

I have compared it here with a mainline BB polo. The quality of the pique seems quite consistent between the two, but notice how one is made in China, and the other in Hong Kong. In regards to tailoring, Hong Kong is actually a higher standard and has a better reputation. For comparison, I'm showing a few differences between the products. In this case, I found what I believe to be a pretty good quality item. In other areas however, which are more quality crucial (suits, ties, anything more complicated than a polo shirt), I notice BIG differences between 346 stuff and regular BB merchandise.

This is a 346 shirt I thrifted. It's more of a "frocket" material (t-shirt style) than a traditional polo. However, I'd never pay $30 or more for it (As suggested by retail prices)
Mainline BB Polo label. Notice the made in Hong Kong  
The 346 Polo I purchased.



Side by side fabric comparison. 

Probably as close to "Black Fleece" as I'm interested in getting.


J.Crew 




The two younger sales guys working here were a bit friendlier and less pushy than the two middle aged women . at the Brooks factory store. Half of J.Crew's merch doesn't really appeal to me, but one product they are quite good with are trad-friendly ties. They did have a clearance bucket with a few scattered offerings for even less, but nothing that made me jump.

Ties, bow ties, pocket squares, all for about $30 ea.



   
If you have read the tie article, you should recognize the stripes, solid, gingham, printed, and club patterns-- All in slim width.
J.Crew had quite a few chinos (in sizes that fit), but my propensity to find them so frequently at thrift stores (often new, with tags) prevented me from yearning for them.

Polo Ralph Lauren

The largest store of the bunch, the polo outlet has enough ammunition to keep the  run-of-the-mill bro pony clad for years. It was a bit late, and I think there was a single, tired saleswoman practically working the entire store. So, I took advantage of this fact and snapped a few pictures while strolling around.

A much smaller selection of ties, but check out the patterns.

A good selection of polo shirts, but offered at retail prices -30% more or less.


Again, the "entire store" is 30% off.  I am not sure of Polo has a dilution line for outlet stores (I've heard rumors they do) but if so, it's simply the same as 346 stuff. 
Everything was still a bit overpriced for me, but I did notice a better selection of oxford shirts than either of the previous stores. I was hoping for more end of summer markdowns, but alas, none to be had.



There was also a Lacoste outlet, but every single shirt was priced at $80, with discounts on multiple purchases. I think I'll stick to my sub-$15 eBay and thrift acquisitions for my crocodiles, RenĂ©. 

This particular location has over 60 stores.

I should mention that this particular outlet mall seems geared towards middle-market consumers, lacking any stores I'd really categorize as "luxury" retailers. Perhaps at other locations where outlets for names like Hermes and Louis Vuitton exist, there might be more access to true "deals". This particular example however, is just a rather nice collection of thoroughly average stores in a rather inconvenient location.

Probably not a bad place to score some kicks though...as there are a couple athletic footwear stores in the compound, in addition to a G.H. Bass if you ever find yourself in need of Weejuns.

So, my advice is this, save your cash (and thrift in the meantime) until there are big sales, then swoop in as early as possible (and fight off crowds of people doing the same) and get the items you are still missing. The important thing is, be an informed consumer, know how to look for signs of quality (or lack-there of it), and know what everything is worth.

At least the sunset was beautiful. Perhaps we ought to appreciate the natural majesty of nature and become less material craved consumers, leading to a throwaway culture of endless purchasing and spending and media li....Hey, wait, are those soft pretzels at the food court? Get outta my goddamn way!

What has your experience at outlets been? Tell us in the Comments section below.

Bonus:


Affectionately known as Pattagucci for the outdoor chic high-style reemergence of the brand...

A few weeks after writing this, I made a pilgrimage up through Freeport on the way to Bar Harbor, ME for some camping. I was especially excited about this Patagonia outlet, but was disappointed to only find bizzaro sizes and colors in stock for 40% off retail.

Also in town is a Brooks Brothers Factory Store (as described above), Vineyard Vines outlet, Orvis, Polo, J.Crew, and of course, Big-Momma L.L. Bean.
Scoping out some VV ties... I think I'll pass @ $50 ea. but I'll take the eye-candy.



3 comments :

  1. If you enjoy fashion and retail work, then opening a men’s clothing store could be a fantastic entrepreneurial decision.
    http://www.apparelnbags.com/athleticwear-athletic-polo.htm

    ReplyDelete
  2. I think you nailed it... here in the SF Bay area we have a few of the "Premium Outlets" but IMO are geared towards tourists who don't know better. I tend to stick with thrifts.

    ReplyDelete