Why outlet stores aren’t as good a deal as they seem

Here's the secret they don't want you to know.


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Outlet stores began in the 1930s as a place for excess and damaged goods to be sold employees. As outlet stores grew they began offering the same goods to non-employees.

Today, shoppers believe they can purchase excess designer clothes from last season at a good price in outlet stores like Nordstrom Rack or Saks OFF 5TH. Wrong. The little-known truth about outlet stores is that most of their merchandise was actually made to sell only at outlets.

Some brands—including Kate Spade New York, Michael Kors, Gap, Banana Republic— are being sued for their misleading retail price comparison on the merchandise tag.

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