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Outlets Keep Luxury Stores Afloat

No frills, but great prices, greet customers at outlets, which are a growth sector

By Harry Kimball,  Newser Staff

Posted Sep 24, 2008 5:25 PM CDT
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(Newser) – In a stagnant economy, luxury retailers are opening off-price outlet stores at a faster clip, drawing in customers with sale prices they’d never see at a flagship, BusinessWeek reports. Including such names as Saks, Nordstrom and Coach, a trend is emerging: While visits and sales at boutique stores are down, outlet or factory locations are busier, and customers are spending more per visit.

“Only stores that scream value are getting consumers in,” one analyst said. The outlet market is so energetic that Saks, at its Off Fifth stores, is offering deep discounts on merchandise still on display at its main locations. And Nordstrom, which recorded a second-quarter loss of 6%, saw sales at its outlets up more than 6%. Outlets are much cheaper to run than swanky boutiques, assuring a good deal on both sides of the transaction.

A Nordstrom store in Denver.
A Nordstrom store in Denver.   (AP Photo)
Women inspect shoes at Saks Fifth Avenue's newly opened designer shoe floor in New York. Shoppers often hit the flagship to case products, and head to outlets to buy them.
Women inspect shoes at Saks Fifth Avenue's newly opened designer shoe floor in New York. Shoppers often hit the flagship to case products, and head to outlets to buy them.   (AP Photo)
A Saks Fifth Avenue store in Boston.
A Saks Fifth Avenue store in Boston.   (AP Photo)
Activity at a Nordstrom store in Seattle.
Activity at a Nordstrom store in Seattle.   (AP Photo)
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Outlet malls see an uptick in business, too
Press-Enterprise

So, who's got the best outlets?
Forbes

A year ago, same-store sales illustrated a quandry
MarketWatch

 
luxury goods • retail sales • clothing • Saks • Nordstrom • financial crisis • retail outlet • Coach

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