New investigation suggests outlet store deals may not be what shoppers think

If shoppers think they are scoring big at outlet stores, a new investigation suggests many of those "deals" may not be deals at all.

If you think you're getting brand-name leftovers or last season's stuff on clearance, a new report from nonprofit Consumers' Checkbook reveals how much of the merchandise you find in outlet centers was never in regular stores to begin with.

Consumers' Checkbook looked at dozens of brands and found shoppers are often misled by pricing tactics and branding that create the illusion of savings.

That does not mean real deals do not exist. But experts say understanding what you are actually buying is key.

Most outlet items are made specifically for outlets

Consumers' Checkbook found most products sold at outlet stores are not unsold inventory.

Instead, they are what the industry calls "made-for-outlet" merchandise. These items are produced specifically for outlet locations and are often made at a lower cost.

Lower prices, lower quality

That difference in price often comes with differences in materials and construction.

Kevin Brasler, executive editor of Consumers' Checkbook, explained what shoppers are actually getting.

"When it comes to apparel, you're getting stuff that they spent less money to make," he said in a recent appearance on the In Your Corner podcast. "If you're buying jeans, you're going to find the denims a little thinner. If you're buying shirts, especially suits and suit jackets, the stitching is different."

Brasler said that does not necessarily mean the items are bad. It depends on what the shopper wants.

"In all fairness, some people, they're OK with that," he said. "They don't want to spend $50 for Polo … and they don't care so much about lower quality stuff."

'Compare at' pricing can be misleading

One of the biggest issues uncovered involves pricing, Brasler said.

Shoppers often see large discounts and "compare at" tags that suggest deep savings. But those comparison prices may not reflect real-world pricing.

"The labels might say things like 'compare at,' and then there's a higher price. Well, compare at what? You never sold this somewhere else at that price," Brasler said.

Real deals do exist, but they are harder to find

The investigation found legitimate bargains are more likely to be found in true clearance centers or clearance racks.

Those are typically items that did come from regular stores and are being sold off at steep discounts. But they are less common than the typical outlet inventory.

What shoppers should do

Experts say the best approach is to ignore the advertised discount and focus on the actual price of the item.

If the price seems reasonable for the product, it may still be worth buying. But shoppers should not assume they are getting a deal based on percentage-off signs alone.

It also helps to know the brand, look closely at quality and understand return policies before buying.

For more on how outlet pricing really works, how to spot real clearance items and simple strategies to avoid being misled, you can watch the full In Your Corner podcast episode on the CBS Philadelphia YouTube channel.

Each week features a different guest expert. You can find new episodes posted every Wednesday on the CBS Philadelphia YouTube channel.  

Looking for help with a consumer issue? Click here to submit your complaint to In Your Corner.