Why Outlet Stores Are the Hottest Thing in High-End Retail

High-end department stores are slumming … sort of. At pricey apparel retailers such as Neiman Marcus and Bloomingdales, outlet stores may soon outnumber traditional locations, according to a new report by Bloomberg Industries. In fact, they already do at Saks and Nordstrom. Some 60 percent of Saks locations are now outlets, and all but two of the 15 stores it plans to open in the next two years will be discount centers. Nordstrom meanwhile has 127 "Rack" outlets and plans to open another 17 by the end of the year.