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Outlet stores are selling low-quality goods to consumers

Jacob Stein, Editor

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Stores like Nordstrom and Saks Fifth produce lower-quality clothes specifically for their outlet stores, a Huffington Post report found.

We all enjoy going to the mall and shopping, especially when there’s a sale or clearance. Outlet stores like Nordstrom Rack and Bealls are consumer staples, as many enjoy the right to brag of a good deal.

People go to outlet stores because most of their merchandise is marked down from the MRSP (manufacturer’s suggested retail price). Further markdowns are also added during sales and clearances.

However, the clothing you are purchasing is often of lower quality. Retailers manufacture clothes destined to go to outlet stores. Nordstrom Rack admitted that only 20% of their clothing sold is clearance merchandise coming from their store and website, the rest “is bought expressly for the outlets.” In addition to this, the MRSP on the tags of these lower quality materials doesn’t represent what it would sell for at a regular store.

Consumers are unaffected by this news. Nordstrom Rack has seen modest growth, going from 119 locations to 215 locations in 2 years. While the full-priced Nordstrom brand stagnates, Rack continues to expand.

Although the clothing is of lesser quality, consumers are paying less for it. Although outlets produce cheaper goods, they aren’t going to warn the consumer. It would be detrimental to their mission: to make a profit. Thus, consumers go on, buying more and more brand-name clothes that are cheaply made.

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