Consumer Watch: Retail sales terminology demystified for reader

Ellen Phillips
Ellen Phillips
photo Ellen Phillips

Q: I am in my 40s and have shopped my entire adult life, yet I still get confused about sale ads and what they mean. I could use some advice about shopping for spring and summer clothing. -- Danielle Dealmaker

Dear Ms. Dealmaker: Terminology certainly can be confusing for customers. To be safe, the Retail Industry Leaders Association via ShopSmart urges consumers to check all store return policies before a purchase and especially on discounted items.

Four main "deals" follow.

1 The clearance section usually contains overstock -- products not sold during the previous season. Additionally, discounted merchandise normally resides in this section. Clearance items are usually deeply discounted to make room for new stuff. The longer they hang around, the deeper the price cut. While this sounds like good news, the store normally doesn't allow returns on clearance items, so make sure you really want the piece.

2 Outlet sections are normally the dumping ground for those items that didn't sell even on clearance. Some also carry returned, refurbished, and slightly defective products.

3 Outlet sites include outlet stores/malls, which many of us (including yours truly) adore! Normally, savings tend to be equal or the same at outlet sections, although some tricksters periodically throw in regularly priced merchandise. For the most part, these places carry overstock, slightly damaged, returned, and outlet-specific items. Because tons of shoppers go to this type of store to bargain shop, retailers have begun to offer these outlet-specific articles -- new items specifically intended for outlet sales. By doing so, the latter builds up offerings that appeal to consumers. For example, many of us couldn't (or wouldn't) buy a Coach handbag at retail price but, on the other hand, Coach outlets do a brisk business with their regular customers and, especially, with those more frugal shoppers.

4 Sale sections are where most of us open our wallets. These are the spots in the store where items are temporarily reduced for a particular promotion. Generally, the sale items are seasonal and popular but don't necessarily hang around for very long. If you see your favorite slacks, for example, on the sale aisles, better grab 'em quickly or they'll return to their regular price before you know it.

Ellen Phillips has written two consumer-oriented books. You may contact her at consumerwatch@timesfreepress.com

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