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Tuesday, April 29, 2003

Buy Prada at the outlet store

There's a new trend in outlet malls. Higher prices for higher-end labels. Some 20 such outlet stores -- brands such as Prada, Dolce & Gabbana etc. -- have opened since 2000 according to this Wall Street Journal story (subscription required). So while lower priced brands like Calvin Klein are not doing so great in outlet malls (a $14 billion industry) and a few are even pulling out, these new brands are moving in!

For shoppers, the newcomers mean the appearance of heavily discounted, albeit still quite expensive, designer clothes on the racks at regional outlet malls. A pink coat dress runs $1,200 at Chanel's outlet store, a relative bargain when compared with the original $3,200 price tag. A Gucci cashmere-and-silk men's turtleneck is $399, more than 50% below the original price. A tan silk pencil skirt, also Gucci, is on offer for $139, down from $460. Christian Dior is charging $1,200 for an evening dress with a black ruffled neckline, marked down from $4,000.

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