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Outlet malls changing shopping values
The City of Commerce shopping center has been in expansion mode, building a wing last fall that brought 36 stores and an additional 152,000 square feet to the mall. Construction workers are currently putting the finishing touches on half a dozen more stores, including Coach Factory Store and Not Your Daughter Jeans, and getting ready to build another wing that is slated to open by the holiday season next year.
At a time when the rest of the retail landscape is still in recovery mode, a rising star has emerged: the outlet mall.
Budgetminded shoppers are flocking to outlet centers in search of name brands at reduced prices. Retailers, which are struggling to persuade discounttrained shoppers to pay full price at their regular locations, are increasingly looking to open outlet stores.
Apparel sales at factory outlets rose 17.8 per cent for the 12 months that ended in April, according to estimates by market research firm NPD Group. Meanwhile, apparel sales industry wide rose a meager 1.4 per cent.
outlets have been able to do is touch the core of the American consumer, said Marshal Cohen, chief industry analyst at NPD. no question that what we witnessing is the transformation of how and where consumers are shopping. The recession really kicked it into high gear for outlet centers.
Outlet shops typically offer 30 per cent to 70 per cent off retail prices for popular, highquality brands that usually resist heavy markdowns. Crew cotton cardigan for $19.99.
At Citadel recently, Nicole Foster, 34, emerged from Two Lips, a shoe shop, with a pair of black chunky heels and a pair of red peeptoe platforms. She bought them for $5 each.
have three kids to raise, so I going to go where my dollar lasts, the lawyer from Whittier said. I not getting the brandnew styles, but I still getting the name brands for half off, sometimes even more than that.
don go to Macy and pay $80 for a pair of shoes anymore; I come to the outlets and look around, said Rivera, 31, now a stayathome mom. me, it better than going to the mall.
years ago if I said, shop at an outlet, they say, no, I shop at Neiman Marcus, said Steve Craig, chief executive of Craig Realty Group, which owns Citadel. don get any nose cringes anymore. Clearly the times have changed. announcing that it would launch the eBay Fashion Outlet virtual outlet mall featuring brands such as Brooks Brothers,[url=http://www.onitsukatiger.com.sg]asics running shoes[/url], Neiman Marcus Last Call and William Rast September.
For retailers, outlets provide a way to offer lower prices and clear excess inventory.
To properly stock the growing number of factory stores, companies are increasingly ordering outletonly merchandise, with analysts estimating that 85 per cent of the products at outlets were never carried in fullprice locations. Other merchandise might be damaged or returned items.
today world, the outlet business is a business upon itself. The average consumer cannot tell the difference between a golf shirt made for an outlet center compared to one made for a fullline retail store, Cohen said. difference mainly is cosmetic see a little less embroidering or a little less detail. Without the fear of sales cannibalization, and because outlets serve as destination centers that reach a broader geographic customer base than traditional malls, retailers have focused on opening more outlet stores.
Although luxury spending has surged back since the recession, most shoppers can afford the skyhigh prices at fullline stores they still covet the designer goods.
The success of outlet stores at the luxury level Marcus, Nordstrom, Barneys New York and Saks Fifth Avenue all operate outlets the attention of executives at Bloomingdale which for years had held off on entering the market.
Last year the upscale department store chain introduced Bloomingdale Outlet by launching four stores around the country. The company plans to open three new outlet stores in the fall and is scouting sites for additional locations.
idea is to serve a customer that has a Bloomingdale sensibility but with a heightened value proposition, spokesman Jim Sluzewski said. don shop in neat categories go where the merchandise and value is right.
Many retailers are using those savings to renovate and remodel their outlet locations by updating the fitting rooms and installing more attractive fixtures and lighting, said Michele Rothstein, senior vice president of marketing for Premium Outlets, the outlet division of mall owner Simon.
Retailers recognize that the outlets can be the very first experience a consumer has with their brand, so the experience has to be a true extension of the brand and the company image, she said.

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