Outlet stores could soon be giving its high-end retailers a run for its money. How so? Well according to a new report by Bloomberg Industries, outlet stores are well on the way to outnumbering traditional full-priced retail locations.
Check out some of these statistics. Some 60 percent of Saks locations are now outlets, and all but two of the 15 stores opening in the next two years will be discount centers. Nordstrom meanwhile, has 127 “Rack” outlets with plans to open another 17 by the end of the year. In fact, Nordstrom Rack locations sell 40 percent more than the company’s traditional locations, according to the Bloomberg analysis.
It’s great news for shoppers buying on a budget, but it’s also a part of retailers’ marketing strategy. “It’s predominantly an entirely different customer for these companies,” says Bloomberg Analyst Poonam Goyal. “They know they can’t afford the full-line stuff, but they still desire the brand…It really took the recession for them to see the opportunity there.”
Bargain on shopaholics! More outlet stores are coming your way.
Source & Photo: Businessweek
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