Outlet Prices Beaten By Retail Markdowns

Published By : 21 May 2015 | Published By : QYRESEARCH

Multiple chains have less expensive apparels in their regular stores. For instance, American Eagle Outfitters Inc. was selling jeans for women for US$29.97 during the 1st weekend of February in Philadelphia, which is 20% less than the similar jeans in its outlets, as stated by the consulting firm named Haynes & Co. The cheapest sweater at retail stores of Ann Taylor in Houston costs US$10 less than the sweaters in its factory stores that cost US$22.50.

In fact, prices at regular stores of American Eagle were far cheaper than those sold at its outlet stores about 43% of the time over that weekend, according to Haynes that has sent researchers to stores in some of the of cities where they compared the maximum, average, and the minimum price for various classes of clothing and apparels. Retail stores of Ann Taylor beat its outlet stores on price about a quarter of the time, according to research report.

The price inversion is not just a matter to find the best deals. If the mainline stores are cutting out their bargain-basement peers, it is a significant indicator of how dependent on discounts the American retailers have become. It also could shed a shadow over the development of outlets, which have been some of the bright spots in the retail as the U.S. economy is trying to overcome the recession. By some accounts, the shoppers are losing interest for the outlets.

Around a third of the consumers who had shopped only at outlet stores in past are now shopping at the regular stores also, according to the transactions by almost one million shoppers that have been tracked by Citi Retail Services, which is a unit of Citigroup providing private-label credit cards to retailers.
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