Why Is Saks OFF 5TH So Cheap? – A Closer Look

Saks OFF 5TH is the outlet store version of the high-end Saks Fifth Avenue department store chain. As an off-price retailer, Saks OFF 5TH is able to offer designer brands at discounted prices compared to typical retail stores.

There are several key reasons why the prices at Saks OFF 5TH are so affordable.

Reasons For Saks OFF 5TH Being So Cheap

  • Discount Retail Model
Saks OFF 5TH

Saks OFF 5TH operates on a discount retail model rather than a traditional department store model.

As an off-price retailer, Saks OFF 5TH buys excess inventory, overstock merchandise, and discontinued products from designers and department stores like its parent company Saks Fifth Avenue.

Buying surplus merchandise at a discount allows Saks OFF 5TH to pass the savings on to consumers.

This discounted inventory is a major way that the store is able to keep prices low.

Saks OFF 5TH also keeps operational costs down with no-frills store designs and streamlined staffing to maintain reduced prices. You won’t find expansive high-end displays or commission-based sales associates at Saks OFF 5TH like you would at a typical luxury department store.

This cost-saving retail format allows Saks OFF 5TH to focus budgets on acquiring merchandise for less instead.

  • Direct-to-Consumer Brands

In addition to buying overstock merchandise from top fashion houses, Saks OFF 5TH designs and produces its own direct-to-consumer label brands exclusively sold in its stores. Vertical integration with 19 owned brands gives Saks OFF 5TH reliable access to affordable merchandise.

Creating its own labels – like The Fifth Label, Vanderbilt, and Saks East – eliminates third-party markups from luxury designers that drive up costs. Owning production also grants Saks OFF 5TH flexibility in tweaking apparel designs for optimal cost management.

With no middlemen between production costs and retail prices, Saks OFF 5TH can invest savings directly into keeping label brand prices reduced year-round.

  • Strategic Product Pricing
Saks Off Fifth CLEARANCE

Saks OFF 5TH employs value-focused pricing strategies that balance affordable costs with reliable designer brand recognition.

The outlet sets initial item prices with customer perception and expected savings in mind.

Tactical markdowns happen at scheduled intervals if needed to spur sales.

Regular prices for a typical jacket or handbag aim for 40-60% off typical retail. Some goods discounted up to 80% create a baseline perception of abundant bargain deals. These especially lowered sale items give customers an anchor price point indicating the store’s discounted set prices are still a steal.

Strategic graduation of price slashes avoids marking extremely popular items too low too quickly. Slowly phasing discounts allows Saks OFF 5TH to maximize profits while maintaining an overall value reputation. Calculated pricing adjustments rather than one-time clearances let Saks OFF 5TH consistently deliver deals shoppers crave.

  • Frequent Promotions and Rewards

In addition to everyday low prices, Saks OFF 5TH utilizes promotions like percent-off discounts, flash sales, and seasonal coupons to spur customer excitement. Sitewide sales offering an extra 10-25% off or $25 off $100 provide an incentive for customers to grab those buy-now markdowns and impulse indulgences guilt-free.

Limited-time flash sale events make bargain hunting even more enticing, with prices slashed for short intervals on select high-demand items that drive traffic. Occasional free shipping promotions also remove online checkout friction when deal hunting from home.

For its VIP shoppers, the SaksFirst loyalty program boosts value through earned reward points, exclusive offers, and free delivery upgrades. VIP sale previews give reward members early access to shop the best deals first. These member-only perks enhance baseline pricing discounts to deliver maximal savings for loyal customers.

Saks OFF 5TH Vs. The Competition

Discounts at Saks OFF 5TH

As an off-price luxury retailer, Saks OFF 5TH occupies a unique niche between discount stores and high-end department stores. Here is how Saks OFF 5TH stacks up against 5 major competitors in the retail space when it comes to pricing, brands, shopping experience and more.

  • Nordstrom Rack

Nordstrom Rack offers similar savings as Saks OFF 5TH with discounts up to 70% off retail prices across top brands. As the outlet for upscale retailer Nordstrom, Nordstrom Rack stocks surplus merchandise directly from its parent’s inventory.

Both stores provide designer deals, but Nordstrom Rack edges out with greater brand diversity spanning luxury, contemporary, and basic levels. Its lively store layouts also showcase goods better for browsing than Saks OFF 5TH’s sparse outlets.

However, Saks OFF 5TH curates deals on higher-end designer labels that Nordstrom Rack doesn’t always capture.

  • Last Call by Neiman Marcus

Owned by luxury department store Neiman Marcus, Last Call provides steep savings on an elevated lineup of designer labels from its full-price sister company. Prices can be slashed up to 65% on an exclusive array of high-end designers that rivals Saks OFF 5TH’s offerings.

However, Last Call has far fewer outlet locations than Saks OFF 5TH making deals harder to access outside major metros. Last Call also lacks a competitive loyalty program. For less dig-deep discounts though among luxury goods, Last Call edges out Saks OFF 5TH with steeper price cuts.

  • TJ Maxx

With over 1,200 locations, TJ Maxx offers unmatched accessibility and convenience for discount designer deals that Saks OFF 5TH can’t touch. TJ Maxx deals span an extensive range from luxury to basics priced 20-60% below typical retail on par with Saks OFF 5TH sales.

However, price points are generally lower and stock is more inconsistent week-to-week at TJ Maxx compared to Saks OFF 5TH’s reliable designer offerings. Still, for shoppers wanting affordable mixed-brand deals conveniently, TJ Maxx is a comparable bargain retailer to Saks OFF 5TH.

  • Century 21

As a NYC institution, this off-pricer offered big-name designer steals for savvy Big Apple shoppers with deals up to 80% off retail. Price points matched up identically to Saks OFF 5TH, catering to aspirational mid-tier luxury shoppers.

However, Century 21 couldn’t weather pandemic shutdowns and the 60-year old chain filed bankruptcy and closed all locations in 2020. Saks OFF 5TH now stands uncontested for brick-and-mortar discount luxury in America’s biggest style capital.

  • Walmart

Retail giant Walmart seems an unlikely competitor to a luxury retailer like Saks OFF 5TH. But Walmart’s heavy push into ecommerce now extends its signature low pricing to aspirational shoppers wanting style savings.

Partnering with brands like Scoop NYC and Sofia Jeans, Walmart.com positions itself as a lifestyle destination while keeping prices at just 20-30% off typical retail. These discounts beat Saks OFF 5TH’s pricing only on non-designer goods though – when it comes to discounted name brands, Saks OFF 5TH still dominates Walmart.

But for ultra-affordable casualwear, Walmart gives Saks OFF 5TH discount competition online.

Frequently Asked Questions (FAQ)

Is Saks off 5TH real or fake?

Saks OFF 5TH is 100% real. It is a legitimate luxury retailer and the outlet brand of high-end department store Saks Fifth Avenue, not an illegitimate counterfeit company. Saks OFF 5TH operates over 120 store locations across North America along with an official e-commerce site at saksoff5th.com to provide authentic designer goods at discounted prices.

Is Saks off 5TH lower quality?

No – Saks OFF 5TH sells the same high-caliber products from luxury designers that specialty and department stores offer. As the Saks Fifth Avenue outlet, merchandise sold at Saks OFF 5TH must pass the same brand standards and authentication procedures before being stocked in stores or online. Items may be leftover overstock, discontinued, or irregular surplus, but never counterfeits or factory second rejects of inferior craftsmanship than the Saks Fifth Avenue mother brand. Savvy shoppers can score designer deals without sacrificing authenticity or durability shopping at Saks OFF 5TH.

What is the difference between Saks Fifth and Saks Off Fifth?

Saks OFF 5TH is the discount outlet version of upscale department store Saks Fifth Avenue. Saks Fifth Avenue operates luxury-level retail selling designer apparel, handbags, shoes, accessories, beauty and home goods from exclusive premium brands at typical suggested retail prices.
Comparatively, Saks OFF 5TH offers a more budget-friendly range of the same high-end merchandise and labels as Saks Fifth Avenue but at reduced prices between 30-60% below typical retail. Savings come from buying overstock inventory, past-season leftovers, and other closeout merchandise at a discount from Saks Fifth Avenue or direct from vendors. Designer authenticity and product quality are consistent across both stores, but Saks OFF 5TH delivery deeper discounts by cutting back on premium shopping experiences.

Does Saks Fifth Avenue sell real stuff?

Yes, the merchandise at Saks Fifth Avenue is 100% authentic from legitimate luxury designers. As an established high-end department store, Saks Fifth Avenue has an over 175-year reputation and partnerships across elite fashion brands to provide guaranteed genuine goods. Saks invests heavily in supplier relationships and authentication practices to ensure the quality and exclusivity expected from premium Saks shopping. Both Saks Fifth Avenue and its outlet Saks OFF 5TH sell only real, verified designer merchandise – never imitations or counterfeits. Shoppers can trust items bought at Saks Fifth Avenue stores and websites will be expertly authenticated originals.

Closing Remarks

In summary, Saks OFF 5TH provides designer brands at budget prices through its discounted retail model, direct sourcing, strategic pricing adjustments, promotions and loyalty rewards.

By acquiring merchandise below retail costs, minimizing operational expenses, optimizing pricing strategies and spotlighting coupon deals, Saks OFF 5TH maintains incredible savings compared to traditional luxury retailers.

Affordability is no compromise on style or quality though – value prices are just a smart side effect of Saks OFF 5TH’s customer-minded commerce approach.

Clayton S. Johnson

Well, I am Clayton who writes, manages, and does overall stuff for this website. I live somewhere in Stone Mountain, Georgia, and used to have a full-time job. But the pandemic taught me to do more do with my life. So, I quit my job and travel a lot! Since I have tons of time now, I write about all the stuff I have done, used, and have first-hand experiences.

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