Retail Store Vs. Outlet: What’s the Difference?

Can you buy a J. Crew sweater for half price—simply by shopping at the outlet version of the store? The answer is yes and no.

Like most outlets, J. Crew Factory sells clothes that were created specifically for the outlet. The vibe and overall style are very similar to the apparel sold in the retail store, so the sweater will definitely give off that preppy-chic, J. Crew aesthetic. But J. Crew Factory is actually an entirely different brand under the same parent company. The quality won’t be on par with what you might get at the J. Crew store. On the other hand, you can find some serious bargains in the sale and clearance racks.

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Do All Outlets Carry the Same Products As the Original Brand?

Some outlets do carry products that are the real deal originals. They’re lower priced because they were overstocked items from last season, pre-owned/refurbished/returned products, or open-box versions of goods. In those cases, you might have to hunt a little harder through the merchandise, but you might find a hidden gem (i.e., a high-quality item at a low price).

You used to have to travel to outlet malls to find affordable versions of name brand goods. These days, most retailers have online outlets that make comparison shopping easy. So if you’re on a budget, you have more shopping options than ever before. Here’s a quick primer on some of your favorite stores and their outlet versions, so you can know when you’re getting a just decent deal — and when you’re getting a real steal.

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Outlet Stores That Are Actually Sister Brands

When you visit an outlet mall, most of the stores you encounter are probably like J. Crew Factory. Their merchandise consists of more affordable versions of flagship store styles, but they’re created specifically for the outlets. They are tagged differently than items sold in retail stores.

• At the Banana Republic Outlet, you’ll see three diamonds under the brand name on the tag.
• At the Gap Outlet, you’ll see three squares under the brand name on the tag.
• At the Ann Taylor Outlet and Ann Taylor Loft Outlet, look for the word “factory” under the brand name on the tag.
• At the J. Crew Factory, you’ll see two diamonds under the brand name on the tag.
• At the Ralph Lauren outlets, you’ll see tags with one of these three brands: The Chaps, Lauren by Ralph Lauren and Polo Ralph Lauren.

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Your Ultimate Outlet Shopping Guide

Coach Factory Outlet

Original or Outlet-Specific Products: Both

Coach Factory Outlets carry some original Coach handbags, but most are created specifically for the outlet (and sell for about half the price). You can generally tell which is which by the inventory. If there are many bags available in a certain style, it was probably made for the outlet. Just a few available? It could be an overstocked item from a past season at a Coach retail store. The giveaway is on the price tag. A made-for-the-outlet bag will have a tag that reads “comparable value,” while the retail bag price tag says “MSRP.”

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Best Buy Outlet

Original or Outlet-Specific Products: Original

If you’re looking for a Macbook Air or a flatscreen TV and don’t want to pay full price, you might start at a Best Buy Outlet. All of the consumer electronics are original merchandise that are now either on clearance, pre-owned, refurbished, or “open box.” That means they could be in pristine condition, but they might also have minor damage or missing accessories. You’ll find deals for half off or more, since the pricing reflects the condition. 

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Nike Clearance Store and Nike Outlet

Original or Outlet-Specific Products: Both

There are over 200 Nike Outlet stores, where you can buy shoes, apparel and accessories that are made specifically for the outlet. Here you’ll find better prices but lower quality.  That said, there is another option if you want to buy original Nikes for less. You can also check out the clearance section at Nike.com. Just keep in mind you’ll probably have to settle for last season’s styles. There are also some brick and mortar stores selling original Nike shoes on clearance throughout the country. They’re located in Tempe, AZ, Concord, NC, Florida City, FL, Grapevine, TX, Gurnee, IL, Johnson Creek, WI, Las Vegas, NV, Orlando, FL, and Woodbridge, VA.

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Nordstrom Rack

Original or Outlet-Specific Products: Both

Nordstrom Rack sells both overstock merchandise that was originally available in Nordstrom’s department store, and it also sells some items made specifically for the outlet. Because of its connection to Nordstrom, the outlet can buy merchandise from the brands Nordstrom carries for up to 70% off. Then it passes the savings on to consumers. That means you can pick up makeup like Philosophy, Urban Decay and MAC Cosmetics for up to 50% off.

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Saks Off Fifth

Original or Outlet-Specific Products: Original

Saks Off 5th sells the excess inventory of apparel, shoes, handbags, and accessories that were originally sold at Saks Fifth Avenue’s flagship stores during previous seasons. While it sells its goods for 30% – 80% off, keep in mind that these are luxury goods. So even with the discount, the prices may still seem high!

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Amazon Outlet

Original or Outlet-Specific Products: Original

The products at the Amazon Outlet aren’t second-tier quality, either. They’re simply overstock merchandise, discontinued items or goods that are now on sale to make room on the shelves. It spans all departments, and you can search the site as you would on regular Amazon — by department, price, customer review or percentage off. The only difference is that every single item is on sale!

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REI Outlet

Original or Outlet-Specific Products: Original

REI Outlet is an online store where customers can find last year’s original merchandise and end-of-season closeouts for reduced prices. On average, you can save 20% – 40% off original prices on clothes, shoes and outdoor gear.

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