Sunday, August 09, 2009

Hey, Smart Shopper

ALTERNET.ORG has a very interesting article, just in time for the back-to-school shopping blitz, written by Ellen Rupel Shell of the Penguin Press, titled "How Outlet Malls Have Convinced Shoppers into Thinking They're Getting a Sweet Deal". Worth the read.

It's not just a North American phenomenon:

Outlet malls are big in Europe, Japan, and Hong Kong. They exist in Turkey, Dubai, and South Africa. If there is one deep in the Amazon rain forest, and another just south of the North Pole, it would not surprise me. The New York Times once reported that outlet malls were not only the fastest growing segment of the retail industry but one of the fastest growing segments of the travel industry. 

Their distant locations are no accident:

In a very real sense, outlets are the anti-convenience store. Visiting the outlets demands an investment in time, deliberation, and energy beyond what we invest in most other leisure activities. And because the effort required to reach and shop at them is substantial, even extraordinary, the experience of going to the outlet is elevated in our minds to "special occasion" status. A trip to the outlet mall is not passive, not simply a matter of popping in to pick up a few things. We have to work to get there, piling up hefty "sunk costs." All that time! All that gas! "I gave up my entire Sunday afternoon and even missed the game to come here!" Psychologically speaking, all this and more must be repaid in the form of purchases made. In making that long trip we are actually engaged in a transfer of power away from ourselves to the outlet itself. The mall has extracted a price, and in demanding repayment, we are in fact taxing ourselves. Our expectations are raised at the same time that our guard is lowered, and in making this bargain we are willing to forgo many things that we once demanded from a satisfying shopping experience: variety, serendipity, aspiration -- and fun.

And they're designed to be uncomfortable:

Outlet malls, too, minimize amenities to discourage wasteful lingering. You are not likely to stumble on a fashion show, listen to a chamber orchestra, or enjoy a gourmet meal at an outlet center. But that doesn't mean you won't spend a lot of time dispersing your paycheck. On average, shoppers spend nearly 80 percent more money at a bare bones outlet mall than they would at a fully loaded regional mall. A popular rationale for this seeming paradox, in addition to the inconvenience hypothesis, is that outlet shoppers spend more to save more on things they really need.

But the savings aren't there to be had. Caveat emptor, baby, caveat emptor. To find out why and how, go visit the page.

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