GROVE CITY -- A bag from the Liz Claiborne shop in hand, Millie Cottrell walked to a bench outside Prime Outlets at Grove City to meet her husband, Ed.

He had shopped two days earlier at the Black & Decker Factory Outlet store. The North Carolina residents like the mall, like outlets in general and consider themselves careful shoppers.

However, when they were asked exactly where the outlet stores got their merchandise, they weren't sure.

"Oh, shoot," said Millie Cottrell. "Good question."

Perhaps it doesn't matter where all that merchandise sold at 20 percent, 50 percent, even 70 percent off came from. But the truth is that the acres of clothing, books and other stuff at outlet malls may not fit the original definition of outlet goods.

Sure, there are the traditional last-season leftovers and irregulars.

But there are also a whole lot of items made just for the outlets, which may mean the items are lower quality than the chain's standard lines.

Coach Accessories estimates that 65 percent of the leather bags, purses and wallets in its 74 outlet stores are made specifically for the outlets. The rest are from discontinued styles or irregular goods.

Flatware maker Oneida Ltd. says its 64 outlet stores stock many closeout items and returns, but they also stock first-run merchandise and items such as giftware and linens made just for the outlets.

Polo Ralph Lauren Corp. runs more than 125 U.S. outlet stores under several names, including Polo Jeans Co. and Club Monaco. The stores last year bought 15 percent of their goods from the parent company, 54 percent from its licensing partners and 31 percent from unrelated suppliers.

Ordering new merchandise to fill outlet stores isn't new. "It's been a common practice for a long time," said Lois Huff, senior vice president with RetailForward, a consulting firm in Columbus, Ohio.

The fact is that with the explosion of outlet malls in recent decades, there aren't enough leftovers to fill them. If a retailer could fill a chain of outlets with closeouts, "it would be an indication you definitely aren't doing something correctly," she said.

A recent trip to The Children's Place store at Ross Park Mall found the same cotton rompers splashed with pink and yellow flowers available at Grove City, and at the same two-for-$12 price. Both stores sported red-and-white Monster Sale signs and tables full of deeply discounted red-white-and-blue T-shirts and swimsuits.

On the other hand, a rack of white embroidered baby dresses marked down from $16.50 to $9.99 and then $4.99 were only at the outlet store.

There are ways to identify where outlet merchandise came from. A 1998 Consumer Reports piece suggested looking for items whose sewn-in label has been cut or marked. Usually, those came from a traditional store and weren't just made for the outlets.

Some places, like Saks Fifth Avenue's Off Fifth outlets, purposely leave the original price tags on items showing all the markdowns along the line. "It was always very obvious which was which," said Saks spokeswoman Lori Rhodes.

Huff doesn't think the mix of goods is a big issue for most consumers. They aren't necessarily looking for the down-and-dirty experience of the original outlets, which were frequently no-frills places next to a manufacturer's warehouse. Shoppers who go to outlet malls want a good deal on the brands they like and the experience of finding lots of discounts on the same day in the same place, she said.

That's what the Cottrells wanted when they stopped at Grove City on their way south. But Millie Cottrell pointed out that a good department store sale can often beat an outlet deal.

Analysts agree that ongoing sales at traditional malls and an influx of discount stores have cut into outlet business.

Not all retailers and manufacturers have outlets. Some clear out slow-moving merchandise by selling odd lots to off-price chains. Those who operate outlets do it because they can often get a better price for slow-moving merchandise, plus they reach a different audience.

Shoppers may find that goods specifically made for the outlets are slightly different from those in the full-price stores. As Consumer Reports pointed out, the maker may have omitted some niceties such as safety sticking around the sleeves or an extra button on the cuffs.

Cottrell studies the styles and construction of the items before she buys. "Lots of times I don't think it's first quality," she said.

Consumers may be willing to accept slightly lower-quality items if they can get the style they want at a discount. "Why do people buy knockoff Gucci bags?" asked Huff. "They know they're knockoffs," because the real thing would sell for much more. "They're getting the brand look they want at the right price."

The Better Business Bureau advises outlet shoppers to ask about the age of merchandise and if items can be returned at the full-line branches. A clerk at The Children's Place in Grove City volunteered that purchases there could be returned at any of the company's stores.

There are still finds at the outlets, said Huff. Even merchandise made just for those stores often sells at a discount. "The consumer is not getting ripped off," she said. "They're still getting a very strong value."

A Borders bookstore outlet at Grove City was offering the children's book "A Treasury of Fairy Tales" for $4.99. The same book can be found at Borders on McKnight Road for $14.98.

For their part, retailers need to be careful that what they put in their outlet stores reflects the image they work so hard to project in their main operations, said Huff.

Over the past year, Saks Fifth Avenue, the luxury department store, has been trying to make its merchandise more upscale at its outlet division, Off Fifth.

About 25 percent of the clothing has always come from Saks stores. After being marked down there three times, the goods are sent to the outlets to make room for the next season's styles. Another portion of the clothes come from Saks' suppliers.

But some lines in the outlets were never sold at Saks and aren't even considered luxury goods. "What our customers told us was they want Saks Fifth Avenue merchandise," said Suzanne Johnson, president of Off Fifth.

The company is slowly weeding out the non-Saks brands and already sales are improving, she said. By fall, the only styles Off Fifth outlets will carry will have some Saks connection. "If they haven't shopped at Off Fifth in a while, they should take a trip," said Johnson, "because our merchandise is better than it has ever been."