Premium outlets sell brand-name goods at lower prices than department stores, but charge higher rent to the brands that occupy them

A premium outlet is a shopping center where established brands like Coach, Nike, Ralph Lauren, and Saks OFF 5TH operate their own stores and sell inventory at discounts. The difference between a premium outlet and a regular outlet mall is the tenant mix and the real estate model. Premium outlets are typically newer, better-maintained properties in more desirable locations — often near affluent suburbs or tourist destinations. They attract higher foot traffic and charge brands significantly more in rent, which is why the brands can afford to stock them with current-season merchandise rather than only overstock and past-season items.

Premium outlets are owned and operated by real estate companies, most commonly Simon Property Group, Taubman Centers, or Brookfield Properties. These companies lease space to brands, who then decide what inventory to send there. The brands benefit from the location and traffic; the property owner benefits from the rent. You benefit from lower prices on goods that are often newer than what you'd find in a regular outlet mall, though the discounts are typically smaller — usually 25 to 40 percent off retail rather than 50 to 70 percent.

Key Takeaways

  • Premium outlets are located in high-traffic areas near wealthy suburbs or tourist zones and are maintained to a higher standard than regular outlet malls.
  • Brands in premium outlets pay higher rent to the property owner, which means they stock newer merchandise and offer smaller discounts than regular outlets.
  • The major property owners are Simon Property Group, Taubman Centers, and Brookfield Properties, though each outlet operates independently.
  • Premium outlets typically offer 25 to 40 percent discounts off retail prices, compared to 50 to 70 percent at regular outlet malls.

How premium outlet locations are chosen

Premium outlets are built in specific geographic markets where the property owner believes they can attract both high-income shoppers and tourists. Common locations include areas near major metropolitan areas, along interstate corridors with heavy traffic, and in destination vacation regions. For example, premium outlets often appear near ski resorts, beach towns, or major cities where visitors have disposable income and time to shop.

The property owner conducts market research before building or converting a property into a premium outlet. They look at household income in the surrounding area, proximity to hotels and attractions, and whether anchor brands are willing to lease space. Once a location is chosen, the owner signs long-term leases with brands — typically 10 to 15 years — and the brands commit to opening stores there. The property owner then maintains the common areas, parking, landscaping, and exterior appearance to a standard that matches the brands' image.

Which brands operate in premium outlets

Premium outlets stock brands that have strong retail presence and brand recognition. These include luxury and contemporary brands like Coach, Michael Kors, Burberry, Gucci, Prada, and Saks OFF 5TH (the outlet division of Saks Fifth Avenue). Athletic and lifestyle brands like Nike, Adidas, and The North Face also operate premium outlet locations. Department store outlet divisions like Nordstrom Rack and Macy's Backstage appear in many premium outlets as well.

Not every brand operates in every premium outlet. A brand decides which locations make sense based on the surrounding market and the rent the property owner is charging. A luxury brand might only open in premium outlets in wealthy areas or tourist destinations, while a sportswear brand might have a wider presence. When you visit a premium outlet, the specific brands available depend on which ones the property owner was able to sign leases with and which ones remain profitable in that location.

Merchandise and pricing in premium outlets versus regular outlets

The merchandise in a premium outlet is typically newer and closer to current retail inventory than what you find in a regular outlet mall. Because brands pay higher rent, they send more current-season stock to premium outlets to justify the cost. You might find last season's styles or overstock, but you are more likely to see items that are still selling in full-price retail stores, just at a discount.

Pricing reflects this difference. Premium outlet discounts typically range from 25 to 40 percent off the original retail price. A regular outlet mall might offer 50 to 70 percent discounts because the brands are paying lower rent and can afford to stock only clearance and overstock merchandise. The trade-off is that premium outlet prices are higher, but the merchandise is newer and the shopping environment is more polished. A regular outlet offers deeper discounts but older inventory and a more utilitarian shopping experience.

The physical environment and amenities

Premium outlets are designed and maintained to feel more like upscale shopping destinations than discount warehouses. The buildings are typically newer or recently renovated, with clean storefronts, wide walkways, and professional landscaping. Parking is abundant and free. Many premium outlets include restaurants, cafes, or food courts, and some have entertainment options like movie theaters or children's play areas.

Regular outlet malls, by contrast, often have an older or more basic appearance. The focus is on function rather than aesthetics. The difference is intentional: premium outlets charge brands higher rent partly because the property owner invests in maintaining an environment that attracts affluent shoppers and tourists who expect a certain standard. That investment is passed on to you in the form of higher prices, but also in a more pleasant shopping experience.

How to find premium outlets near you

The easiest way to find a premium outlet is to visit the website of the major property owners. Simon Property Group operates The Mills and Premium Outlets locations and lists them on simon.com. Taubman Centers operates The Taubman Company properties and lists them on taubman.com. Brookfield Properties operates Outlet Collection locations and lists them on brookfieldproperties.com. Each site has a location finder where you can search by state or city.

You can also search online for "premium outlets near me" or "outlet malls near me" and cross-reference the results with the property owner websites to confirm which are premium versus regular outlets. Many premium outlets have their own websites with store directories, hours, and information about current promotions. Tourist information websites for major cities and vacation destinations often list premium outlets as well, since they are a draw for visitors.

Frequently Asked Questions

Are premium outlets worth visiting if I live far away?

That depends on how far and what you plan to buy. If you are already traveling to the area for another reason — a vacation, visiting family, or passing through on a road trip — a premium outlet can be worth a stop. If you are driving specifically to shop, calculate whether the gas and time cost is worth the discount you will receive. For most people, a premium outlet is worth visiting only if it is within 30 to 45 minutes of home or on the way to somewhere else.

Do premium outlets have the same return policies as regular retail stores?

Return policies vary by brand and by location. Some brands operate their outlet stores with the same return policy as their full-price retail stores; others have stricter policies for outlet merchandise. Check the specific brand's return policy before you buy. Many outlet stores post their return policy at the register or on their website, and you can also ask a sales associate.

Can I find the same brands at a regular outlet mall?

Some brands operate in both premium and regular outlets, but not all. A luxury brand like Gucci or Prada is more likely to appear only in premium outlets because the rent is higher and the location is more upscale. A sportswear or contemporary brand might have locations in both types of outlets. If you are looking for a specific brand, check the store directory on the outlet's website or call ahead to confirm they have a location there.

Are prices the same at all premium outlet locations of the same brand?

Prices are typically the same across all locations of the same brand, but inventory varies. A Coach store in one premium outlet might have different styles and sizes in stock than a Coach store in another premium outlet. Sales and promotions may also vary by location. If you are looking for a specific item, call the store ahead of time or check their website to see if they have it in stock.