Suzanne O’Connor’s Bargains LA

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Wednesday, February 26, 2020

The Truth About Big Off Price Stores

Filed Under: Zannee’s Tips,

By rmaya

Wednesday, February 26, 2020

By Suzanne O’Connor

I regularly ask companies who contact me about Sample and Warehouse Sales, where their product normally sells and what the retail price range is.

More often than you’d think, I find out they sell at Nordstrom’s Rack, Ross Dress for Less, TJ Maxx and Marshalls. That’s their retail comparison.

That shouldn’t be a surprise.

Though all of those stores do sell brand name, & designer product for less, they have to fill out their inventory so there stores have enough product. So they buy or manufacturer lower quality product for their outlets.

The industry name for this is Special Purchase Product.

This is merchandise that is brought in and priced at a price point that looks reasonably low, but never really sold anywhere else at a higher price. It’s a bit of a ruse and you the consumer are led to believe you have a deal, but what you actually have is a cheaper product at a cheaper, but retail market price.

Nothing wrong with that if you know before you buy.

This practice is common at more than 75% of Outlet Mall stores. You’ll go into an outlet store, there will be several racks of items that are first quality manufacturer overruns and the rest of the stores product was made just for the outlet.

The other outlet stores in those big outlet malls will have 30-40% of product from last season on sale with the rest of their inventory at retail.

If you weren’t aware of this before, now you know and can make an informed choice.

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