Thursday, February 28, 2019

The Outlet Trap

Interesting little video questions the future of outlet stores.  The Kavalier argues they dilute  brands while destroying the retail industry.   Coach is cited as one example.  Will we continue to see a proliferation of outlet malls such as the one in Pearl or will manufacturers turn away from the retail crack?


13 comments:

Anonymous said...

That makes sense. I’ve heard this theory before and I agree. My only question is...is the same true for Amazon? I’ve bought an item from a retail store and then turned around and bought the same item from Amazon. I believe the quality of the product that I bought off Amazon was less. Anyone know of that could be true?

Anonymous said...

As long as governments keep coming up with tax schemes to build malls, we'll keep getting malls whether we need them or not.

Anonymous said...

it depends...don't forget about the developer pimps out there tryin' to keep they retail gurlz in line.

Anonymous said...

He's right to an extent.

He focused on there here and now with retail, made great points.

But the economy is another factor.

I worked retail probably as long as he's been alive. Yes, Amazon, Wal-Mart, and Target are factors, yes the sales promos/formulas killed a lot of retail companies. But when people are depending on credit and not cash to purchase discretionary goods - that's a major problem.

If you want capitalism to survive, you want these outlet stores to survive, start focusing on Americans discretionary spending.

Anonymous said...

The consumptive model is the problem. Start focusing Americans on solvency and savings.

Anonymous said...

Totally agree. Luxury, quality, brands cease to carry the same prominence when every lady in a Chrysler 300 can carry Coach, Michael Kors, D&B, etc. Outlet stores used to sell true factory blemishes, but now its a retail store to peddle their lesser quality stuff. Polo used to be the preppy icon staple, now hardly anyone wears it as compared to pre-outlet store days.

A Gimmick By Any Other Name.. said...

Who cares? All that matters is Jerry Lane is going to get me some real good discounts on the world's best diamonds.

Anonymous said...

Who is Jerry Lane?

Anonymous said...

The consumptive model is the problem. Start focusing Americans on solvency and savings.

Consumption is the problem? How the hell you think our economy blew up and made it this point? It wasn't off sheer happenstance.

Anonymous said...


Remember when Wal*Mart landed? All the talk was how it would kill small stores, yes, it killed the badly run, managed and financed stores but it did not kill all retail. Then target would kill better stores with all it upscale branded stuff, did not happen except badly run, managed and financed operations. Now Amazon will kill everything, maybe but doubtful.

As a retired retail business consultant the family owned stores need to stop and take a deep breath. Going forward will be hard. As PoGo said "we have seen the enemy and he is us". To survive its about turns, margins, inventory (a little not a lot). We were able to take a chain of stores from $8 Million to $10.5 million in 18 months with less inventory and more profits in the chains history. Turns baby turns.

The last numbers I saw had brick and mortar stores control about 80 percent of all retail worldwide and Amazon and others have the rest.

The guy has some great points about discount outlets. Take a trip to Belk and check out racks full of merchandise, if you pay full price you are the sucker they are looking for. The grand old department stores are just posers but in truth are all major discount stores.

The qualifier that separates discount stores from department stores is high end cosmetics nothing more.

Anonymous said...

So many people need a perceived deal. Just ask J.C. Penney. Their core customer expected their coupon discounts. Some brilliant new CEO or COO decided that the sales were over and that they would promote everyday low prices. Did not work for their consumer base and expectations.
8:39 is correct. The outlet model is not an outlet at all any more. It is lesser quality goods produced just for the outlet store with a brand name sewn in. If you want a low price trend, you may as well get it at Target or Walmart. If it is the label you desire, shop the real store and their 30-40+% sales. Online - stores are also offering online shopping and shipping. Amazon is building stores. The playing field will level out with those listening to consumer demands surviving.

Anonymous said...

Jerry Lane is Jerry Lake with a typo. You know perfectly well who he is. He's the guy who orders you those brown diamonds for your friend-girl with the vision problem.

Anonymous said...

Frankly, it was too stressful trying to process that little greaseball's overly-fast lower class East Coast mumbling, with the old Holiday Inn lobby music drowning him out. I could only take about three minutes of that.

But what idiot even bothers with outlet malls? They're full of overpriced DRECK. You can get a better deal, on better merchandise, when a nice store is having a good sale.

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