Merchants walk a fine line with expanded outlet strategy

05/24/2010 | Reuters

A growing number of upscale retailers including Nordstrom and Saks are adding outlet stores as part of a strategy to increase sales by reaching middle-income shoppers whose budgets don't stretch to full-price high-end stores. Some industry watchers wonder whether the strategy could backfire at some point, eating into full-price sales and potentially tarnishing the image of upscale brands.

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