Reeder says Neiman Marcus outlet shoppers are fully aware of the difference in outlet offerings, but vague labeling continues to perplex shoppers. The formula these outlets employ-designers watering down their original concepts with inferior materials and production methods to get to a lower price point-wouldn't seem so sneaky if shoppers knew what they were buying. According to Buzzfeed, last year Saks Off 5th executives told investors that just 10% of their merchandise comes from Saks, 25% is "private-label" goods, and the rest is created for the outlet by specific vendors.
THEORY OUTLET SALE FULL
For example, a DVF dress might have a pattern that wasn't picked up from our full line stores, so we made a batch of them for the Studio stores."īarneys and Saks would not provide comment to Racked, but it's fairly safe to assume the outlet practices of Barneys Warehouse and Saks Off 5th are similar. I wouldn't call the clothing cheaper, it's just less expensive. "Many designers we carry are designers we have in our full line store, but there might be a different fabric or buttons or the finishing touches might be different. "We've found that for an aspirational shopper, they are looking for the same design mix found at Neiman Marcus, but at a lower price point," Reeder says. While she wouldn't confirm whether or not this inventory is of lesser quality, she did note the items are meant for an "aspirational shopper." Ginger Reeder, Neiman Marcus's vice president of corporate communications, says the company works with designers like Equipment, Theory, Stuart Weitzman, Tahari, Furla, Kate Spade New York, and Vince to design and produce merchandise for their outlets. Neiman has two kinds of outlets: Last Call Clearance Centers carry overstock from the full-priced stores, while Last Call Studio stores sell items specifically made for the outlets. Photo: Getty Imagesįor those shopping at Neiman Marcus outlets, things get a little more confusing. In some cases, and you can see this in our public balance sheet with our inventory levels, we purchase these closeouts or excess product at the end of the season, and hold it in a warehouse for a certain amount of time."Ī shopper inspects a bag at a Gap outlet. "An example could be end-of-the-season closeouts or excess inventory that a brand has and wants to clear out. "It is existing merchandise that we are able to purchase from our vendor partners," says Nordstrom Rack's Naomi Tobis. Nordstrom Rack, for example, confirms to Racked that only 20% of what it sells is clearance merchandise coming from their stores and website, while the rest is bought expressly for the outlet. Neiman, Nordstrom, Bloomingdale's, Barneys New York, and Saks Fifth Avenue all have their own outlets customers flock to these stores for the brand-name cachet and believe they're shopping last season's carefully curated inventory. In reality, much of the merchandise at the outlets of major department stores is made or bought specifically for those outlets, with designers and vendors creating familiar-looking pieces at a lower cost that often indicates inferior quality. Most customers believe they are indeed finding gems, that what they're about to buy came from their favorite stores a few seasons ago but was either returned, overstocked, or simply not a best-seller. There are numerous joys that come with discount shopping: scoring finds from your favorite designers, discovering trends you missed last season, snagging wardrobe staples at a steep price cut. I don't know, but I haven't gone back since." "I think it might have been the fabric or maybe the stitching. "The pattern was great and the dress has the perfect fit the way DVF makes all her clothes, but something was really wrong," she explains during a recent shopping trip in New York City. Weitsz, who's no stranger to the brand, felt that something was amiss. The New Jersey social worker, an enthusiastic label shopper who frequents sample sales and department store clearance events, was sifting through clothing racks at Neiman Marcus's outlet Last Call a few months ago when she spotted a DVF piece. You can also see what we’re up to by signing up here. The archives will remain available here for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. Thank you to everyone who read our work over the years.
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