Outlet malls are no longer as popular as they once were. Well-known American brands like Kate Spade, Ralph Lauren, and Coach once depended on outlet stores as a major source of revenue. They were particularly popular among tourists visiting the United States.
However, as Bloomberg reports, the strengthening dollar has made these shops less enticing to foreigners. And perhaps more importantly, these outlets have diluted these once-prestige brands. Consumers have been trained to only purchase products that have been heavily discounted. This strategy has backfired; many of these fashion labels are no longer coveted by consumers and many are doing poorly.
According to real estate company Cushman & Wakefield, outlet malls have grown 33% over the last 10 years, but many companies are now pulling back and halting their outlet mall growth.