Do You Really Save At Outlet Malls?

Despite the recession, new outlet stores continue to stage ribbon cuttings and grand openings. And today's budget-strapped shoppers are flocking to them. Sally Williams, who shops at outlets, said, "We just saved $80 on our purchases."

Outlet malls claim huge savings compared with retail stores. Michele Rothstein with Premium Outlets said, "On average, our shoppers can expect savings of 25 to 60 percent."

But bargain shopper Stephanie Dolch isn't so sure. She said she finds much better deals at discount storers like TJ Maxx, consignment shops, and thrift stores like Goodwill. "Everywhere I go to shop, I pay 75 to 85 percent off. I won't shop full price." Dolch said if you take the time to hunt, you can find brand names like Ralph Lauren, Ann Taylor, and Talbots at secondhand stores for $10 or less.

Of course many of us don't have time to sort though the Goodwill racks. So consumer reporter John Matarese took a hidden camera to some popular outlet stores including Ralph Lauren, Levis, and Columbia. Then he compared prices with discount retailer TJ Maxx and some department stores. The Ralph Lauren outlet featured button down Polo shirts for $39 about $20 less than retail. But at TJ Maxx, we found racks of what appeared to be the identical Lauren dress shirt for just $29, $10 less. The Levis outlet featured Levis 505 jeans marked down from $44 to $34. But Matarese found Levis 505 on sale at Macy's for just $29. The Columbia outlet had adult parkas with zip out linings for $99, while TJ Maxx had similar Columbia's for $79.

Meantime, department stores like Macy's and Nordstrom are fighting back with their own store brands, that look just like the big names for less than half. However, some outlet deals can't be beat: The Nike outlet featured Jordan shoes for $79. At Dick's Sporting Goods, they start at $89 and go well over $100.

The bottom line is outlets can save you money. Consumer Reports magazine said outlets average 25 to 35% below retail. But these days, with so many stores slashing prices, if you have the time and are willing to hunt, you may find better deals somewhere else.

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