Outlet Versus Department Store: What’s the Better Buy?

Published on August 3, 2025

by Tara Parker-Pope

When it comes to shopping for clothing, there are plenty of options to choose from – especially when it comes to finding the best deals. Two popular options are outlet and department stores. Both offer various brands and styles, but which one is the better buy? In this article, we’ll delve into the differences between outlet and department stores and determine which is the better option for your shopping needs.Outlet Versus Department Store: What’s the Better Buy?

The History of Outlet and Department Stores

In order to understand the differences between outlet and department stores, it’s important to know their origins. Department stores have been around since the mid-19th century, offering a wide range of merchandise under one roof. Some of the first department stores in the United States include Macy’s and Bloomingdale’s.

On the other hand, outlets are a more recent addition to the retail industry. They originated in the 1930s but didn’t gain popularity until the 1970s, when consumers started seeking out cheaper alternatives to department stores. Today, outlet stores have become a thriving sector of the retail market, with brands specifically creating outlet-only merchandise.

The Differences Between Outlet and Department Stores

Product Selection

One of the main differences between outlet and department stores is the products they offer. Department stores carry a wide variety of merchandise, including full-priced and designer items. On the other hand, outlets tend to offer last season and overstocked merchandise at discounted prices.

While you may see some designer items at an outlet store, they’re usually from past collections and may have minor imperfections. Department stores, on the other hand, carry current collections and full-priced merchandise.

Pricing

As mentioned earlier, outlet stores primarily carry discounted merchandise while department stores carry full-priced items. Outlet stores typically have lower prices than department stores, offering discounts of up to 70% off. This is because outlets purchase merchandise in bulk and at discounted prices from manufacturers and then pass on those savings to customers.

Department stores, on the other hand, have a wider range of products and may not always offer discounted prices. However, they may have seasonal sales where you can find great deals on designer items.

Quality

With outlet stores selling discounted and past-season merchandise, some may question the quality of the products. However, outlet merchandise is usually still of good quality and may just have minor imperfections that are not noticeable to the average consumer. In fact, some outlets even carry merchandise that is specifically created for outlet stores, meaning the quality may not differ from that of department store merchandise.

Department stores, on the other hand, carry full-priced items which may come with a higher price tag but are usually of good quality. These items are typically from current collections and have gone through stricter quality control measures.

The Verdict: Outlet vs. Department Store

So, which one is the better buy – outlet or department store? The answer depends on your shopping needs. If you’re looking to find on-trend and current items, department stores are the way to go. However, if you’re on a budget and don’t mind last season’s merchandise, outlet stores offer great discounts on designer and branded items.

One thing to keep in mind is that not all outlet stores carry discounted or overstocked merchandise. Some may only carry items specifically created for outlets, meaning you may not find discounted designer items at every outlet store. Therefore, it’s important to do some research and compare prices before making a purchase.

In Conclusion

In conclusion, both outlet and department stores have their own advantages and it ultimately comes down to personal preference. Whether you’re looking for the latest trends or discounted merchandise, both options offer a wide selection of products. So next time you’re in need of a wardrobe update, you can make a more informed decision on where to shop – outlet or department store?