Statistics On The Growth and Size Of the Retail Outlet Business:

Furniture World Magazine

OUTLET INDUSTRY BACKGROUNDER: Outlet stores are owned and operated by the manufacturer, allowing for discounts due to the elimination of the middleperson. Irregular and damaged merchandise accounts for less than 15 percent of all outlet goods. The majority of merchandise is first-quality and in-season. Outlet stores are different than off-price stores, which sell a variety of quality, name-brand goods at reduced prices. Off-price stores are not owned and operated by the manufacturer and typically buy over-allotments from department stores. Marshall's and T.J. Maxx are examples of offprice stores. Outlet stores are also different than discount stores, which sell inexpensive merchandise at reduced prices due to large quantities purchased. KMart and Wal-Mart are examples of discount stores. The Outlet Industry Manufacturers' outlets rank as the fastest-growing segment of the national retail industry. The outlet industry represents approximately $12.2 billion in total retail sales, which is less than 2% of total non-auto retail sales. 312 outlet centers, with a gross leasable area of 55.4 million square feet, were open as of January 1, 1998. More than 13,000 stores were open in manufacturers' outlet centers as of January 1, 1998. More than 500 retail chains operated in the outlet industry as of January 1, 1998. The average size of a manufacturers' outlet center was 177,564 square feet as of January 1, 1998. Approximately 135,000 people are employed in the outlet industry. Outlet centers/stores nationwide offer excellent value every day of the year. Merchandise at outlets is a combination of current-season factory overruns, last season's styles, seconds and samples. The majority of merchandise at outlets is first-quality. Outlet centers can be found in a variety of architectural styles ranging from themed villages to indoor malls to outdoor strip centers. Source: Value Retail News and J.P. Morgan Outlet Industry Update WHO SHOPS AT PRIME OUTLETS CENTERS? CUSTOMER PROFILE Median household income - $50,844 Percentage of repeat shoppers - 69% Average travel time to reach outlet center - 60 minutes Average length of visit at outlet center - 1 hour, 50 minutes; 45% longer stay than regional mall visits Average number of stores visited - 9.2 stores Average expenditure per visit - 60% higher than regional malls Percentage of shoppers eating and/or drinking at food court - 44% Percentage of shoppers anticipating return visits - 92% Median age of shoppers - 44.3 Median household size - 2.78Percentage of shoppers with children under 18 - 36% Percentage of shoppers who are married - 67% Percentage of shoppers who are tourists/out-of -state visitors -21% Source: Prime Retail Customer Surveys (1997-1998) PRIME OUTLETS SHOPPING TIPS Come Prepared With a Shopping List. Take an inventory of your needs and make a list. Then stick to it. Become familiar with the merchants at the outlet center by calling the Customer Service Center or mall office and requesting that a list of stores, outlet center hours and amenities be sent to you. Shopping for Gifts Starts at Home. Before you leave the house, make a list to bring with you. Include all family members and friends you plan to exchange gifts with, in addition to special recipients such as teachers, mailpersons, beauticians or co-workers. If you're buying clothing, make sure you have proper sizes written down. Plan Your Trip Wisely. Visiting an outlet center can be an all day excursion, so give yourself time to enjoy the experience. Familiarizing yourself with the center before you go or when you first arrive will help you develop a plan of attack and decide which stores to visit first. Pick up a store directory, visit a center's website or call the center's customer service office for information on stores, hours, amenities and any special events or promotions taking place. Establish a Realistic Budget. Determine a spending limit for each person on your [holiday/gift] list. Consider setting aside a portion of the budget for some freedom of choice for when you encounter a great gift item that isn't on your list. Shop For Out-Of-Season Merchandise. The majority of the merchandise carried in outlet centers is first quality and in season. However, shopping during the holiday season for fall or summer goods will present the opportunity to find these items at an even deeper discount. Put Your Name on Store Mailing Lists. Many outlet stores have customer mailing lists at the register. By placing your name on these lists, you'll receive early notification of special [holiday] sales and promotions. Consider Gift Certificates. Everyone has someone on his or her list that is difficult to shop for. Consider either a center wide gift certificate, available at center management offices, or a merchant-specific gift certificate, which can be purchased directly from the store. Shop on a Full Stomach and When Well-Rested. Hunger and fatigue can impair judgement and reduce patience. If you are not able to eat a full meal prior to your holiday excursion, pack a snack for energy or stop by the center's food court or eatery. Utilize Amenities When Shopping With Children. There are many centers that are child-friendly for those parents who enjoy bringing their children with them when they shop. Visit customer service booths where many centers offer complimentary stroller rental and can direct parents to other amenities such as playgrounds and food courts. Plan an Entire Day. Outlet Shopping is Worth the Trip. Outlets are a viable alternative to regional malls and offer consumers true one-stop shopping. Most outlet centers house stores which offer gifts for men, women, and children, as well as the office and home. By taking that extra hour to visit an outlet center, many shoppers find they are able to purchase most of their lists within one trip. Find Out About Center Promotions. Many outlet centers schedule special events and promotions during the year, including sidewalk sales, fashion shows and more. Always check with the mall office or Customer Service Center for details. Be Familiar With Return Policies. Always ask what individual store return policies are, especially if your purchase is a gift. Wear Comfortable Shoes and Clothes. Expect to do a lot of walking so wear comfortable shoes and clothes. Slip-on shoes and loose fitting clothing that can easily be taken on and off will also make it easier when trying on clothes. A neutral-colored top is recommended for trying on clothes with a variety of fabrics, styles and colors. Inspect Garments For Irregularities. While a majority of merchandise in outlet centers is first-quality, some irregular and off-season merchandise can still be found, often at deep discounts. Flaws are usually so minor that they are unnoticeable. Before purchasing, inspect the garment and weigh the discount versus any flaw. Shop Early in the Week. Shop during weekdays, when it's less crowded. Early in the week is also when many outlets receive new shipments. Look for Sale Racks. Shop the back of the store first, where many outlet stores have their sale and clearance racks.