Tweet
Can you spot the difference? How J.Crew’s factory outlet doesn’t actually sell discounted old stock – but cheap knock offs
Clothes found in outlet stores are simply 'based on' old, full-price stock
J. Crew Factory uses cheaper fabrics to produce lower quality products
By OLIVIA FLEMING
PUBLISHED: 15:28 EST, 19 May 2014 | UPDATED: 16:20 EST, 19 May 2014
It has long been assumed that J. Crew Factory simply sells old, unwanted stock at a heavily discounted price. But these 'deals' might not be what they seem.
Rather, the outlet store is actually selling knock-offs of its own products, creating a separate line of lower-quality goods that look similar to what can be found in the main retail store.
According to Buzzfeed, most outlet items from J. Crew, Gap and even Off 5th are simply 'based on (full-price) products sold in previous seasons'.
Saks Fifth Avenue factory store, Off 5th, even admitted to investors last year that only 10per cent of the outlet merchandise is leftover Saks inventory. With 25per cent of the factory stock made up of private-label goods from brands like Rag and Bone and Alice + Olivia, the rest, 65per cent, is actually merchandise created specifically for Off 5th by 'brand-appropriate' vendors.
Nordstrom Rack, the department store's popular discount store, does this too. The company notes in a press release: 'The Rack carries merchandise from Nordstrom stores and Nordstrom.com, as well as specially-purchased items from many of the top brands sold at Nordstrom.'
To an untrained eye, J. Crew Factory's version looks like it is the same dress, just two seasons old. But in fact, the near identical dress, selling for $74.50, is made from polyester. Items sold at the J. Crew Factory, both online and in store, will often use the same prints as full-priced items, but the fabric can be markedly different.
Take for example, last summer's Punk Floral Print scoop dress, which was made from silk dupioni and retailed at J. Crew for $178. To an untrained eye, J. Crew Factory's version looks like it is the same dress, just two seasons old. But in fact, the near identical dress, selling for $74.50, is made from polyester.
Similarly, J. Crew's well-known linen Carrie Dot dress from last summer ($148) is also available online at J. Crew Factory. However, the outlet dress ($104.50) is made from cotton, and unlike the full-priced version, a mismatched seam can be found at the back.
These 'potentially misleading marketing practices by outlet stores' are now being investigated by the Federal Trade Commission after four members of Congress looked at 'the difficulty in identifying made-for-outlet goods' and the 'deceptive reference pricing.'
And J. Crew isn't alone. Bebe told investors that it sustains its outlets with 65per cent made-for-outlet merchandise, while American Eagle has said it anticipates carrying 75per cent made-for-factory items starting this year. Under Armour said in September that its outlets carry 75per cent made-for-outlet goods, while Coach and high-end luggage maker Tumi have said 85per cent of their outlet goods are made-for-factory.
LearnVest noted in 2011 that as retailers have begun to recognize the profitability of attracting Americans -- and even tourists -- who are looking for a deal, they are now building an industry around outlet shopping that is completely separate from their regular business.
Saks Fifth Avenue factory store, Off 5th, admitted to investors last year that only 10per cent of the outlet merchandise is leftover Saks inventory.
Clothes found in outlet stores are simply 'based on' old, full-price stock
J. Crew Factory uses cheaper fabrics to produce lower quality products
By OLIVIA FLEMING
PUBLISHED: 15:28 EST, 19 May 2014 | UPDATED: 16:20 EST, 19 May 2014
It has long been assumed that J. Crew Factory simply sells old, unwanted stock at a heavily discounted price. But these 'deals' might not be what they seem.
Rather, the outlet store is actually selling knock-offs of its own products, creating a separate line of lower-quality goods that look similar to what can be found in the main retail store.
According to Buzzfeed, most outlet items from J. Crew, Gap and even Off 5th are simply 'based on (full-price) products sold in previous seasons'.
Saks Fifth Avenue factory store, Off 5th, even admitted to investors last year that only 10per cent of the outlet merchandise is leftover Saks inventory. With 25per cent of the factory stock made up of private-label goods from brands like Rag and Bone and Alice + Olivia, the rest, 65per cent, is actually merchandise created specifically for Off 5th by 'brand-appropriate' vendors.
Nordstrom Rack, the department store's popular discount store, does this too. The company notes in a press release: 'The Rack carries merchandise from Nordstrom stores and Nordstrom.com, as well as specially-purchased items from many of the top brands sold at Nordstrom.'
To an untrained eye, J. Crew Factory's version looks like it is the same dress, just two seasons old. But in fact, the near identical dress, selling for $74.50, is made from polyester. Items sold at the J. Crew Factory, both online and in store, will often use the same prints as full-priced items, but the fabric can be markedly different.
Take for example, last summer's Punk Floral Print scoop dress, which was made from silk dupioni and retailed at J. Crew for $178. To an untrained eye, J. Crew Factory's version looks like it is the same dress, just two seasons old. But in fact, the near identical dress, selling for $74.50, is made from polyester.
Similarly, J. Crew's well-known linen Carrie Dot dress from last summer ($148) is also available online at J. Crew Factory. However, the outlet dress ($104.50) is made from cotton, and unlike the full-priced version, a mismatched seam can be found at the back.
These 'potentially misleading marketing practices by outlet stores' are now being investigated by the Federal Trade Commission after four members of Congress looked at 'the difficulty in identifying made-for-outlet goods' and the 'deceptive reference pricing.'
And J. Crew isn't alone. Bebe told investors that it sustains its outlets with 65per cent made-for-outlet merchandise, while American Eagle has said it anticipates carrying 75per cent made-for-factory items starting this year. Under Armour said in September that its outlets carry 75per cent made-for-outlet goods, while Coach and high-end luggage maker Tumi have said 85per cent of their outlet goods are made-for-factory.
LearnVest noted in 2011 that as retailers have begun to recognize the profitability of attracting Americans -- and even tourists -- who are looking for a deal, they are now building an industry around outlet shopping that is completely separate from their regular business.
Saks Fifth Avenue factory store, Off 5th, admitted to investors last year that only 10per cent of the outlet merchandise is leftover Saks inventory.
Read more: http://www.dailymail.co.uk/femail/ar...#ixzz32Cn8ek8z
Follow us: @MailOnline on Twitter | DailyMail on Facebook
Comment