Outlet store

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The Nebraska Crossing Outlets Mall (Gretna, Nebraska, 2004) NebraskaCrossing.jpg
The Nebraska Crossing Outlets Mall (Gretna, Nebraska, 2004)

An outlet store, factory outlet or factory store is a brick and mortar or online store where manufacturers sell their merchandise directly to the public. Products at outlet stores are usually sold at reduced prices compared to regular stores due to being overstock, closeout, factory seconds, or lower-quality versions manufactured specifically for outlets. Traditionally, a factory outlet was a store attached to a factory or warehouse, sometimes allowing customers to watch the production process, such as in the original L.L. Bean store. In modern usage, outlet stores are typically manufacturer-branded stores such as Gap or Bon Worth grouped together in outlet malls. The invention of the factory outlet store is often credited to Harold Alfond, founder of the Dexter Shoe Company. [1]

Contents

History

Merrimack Premium Outlets in New Hampshire in 2012 Merrimack Premium Outlet Mall stores.jpg
Merrimack Premium Outlets in New Hampshire in 2012

Outlets first appeared in the eastern United States in the 1930s. Factory stores started to offer damaged or excess goods to employees at a low price. After some time, the audience expanded to include non-employees. [2] In 1936, Anderson-Little (a men's clothing brand) opened an outlet store independent of its existing factories. Until the 1970s, the primary purpose of outlet stores was to dispose of excess or damaged goods.[ citation needed ]

In 1970, Vanity Fair opened the first multi-store factory outlet center in Reading, Pennsylvania. [3] Outlet stores enabled manufacturers to directly enter the retail field themselves and capture more of the profit associated with their brand names. [3] Very few outlet centers were built within major cities, in order to minimize disruption to manufacturers' existing relationships with department stores and other chain stores which had traditionally sold their merchandise. [3] To avoid "retaliation" against manufacturers from such retailers, outlet centers were often positioned at least 20 to 30 miles from the nearest department store, along major highways between metropolitan areas or in resort or recreational areas. [3]

Throughout the 1980s and 1990s, outlet centers grew rapidly in the United States. A typical outlet center in the U.S. is opened with between 100,000 and 200,000 square feet (about 1 to 2 hectares) of retail space. This can gradually increase to 500,000 to 600,000 feet (around 5 hectares). The average outlet center has an area of 216,000 square feet. [2] In 2003, outlet malls in the U.S. generated $15 billion in revenue from 260 stores.

The number of U.S. outlet centers increased from 113 in 1988 to 276 in 1991 and to 325 in 1997 [2] and 472 in 2013. [4]

Outlet malls are not an exclusively American phenomenon. In Canada, the Dixie Outlet Mall dates from the late 1980s, and was followed by Vaughan Mills in 1999, and Toronto Premium Outlets in 2013. In Europe, retailer BAA McArthurGlen has opened 13 malls with over 1,200 stores and 3 million square feet (about 30 hectares) of retail space; describing itself as an "outlet village", Bicester Village, on the edge of the town of Bicester in Oxfordshire in England, is a regular stop for bus-tours of foreign tourists, especially from China. Stores have also been emerging in Japan since the mid to late 1990s. [2]

Similarly in Vietnam in recent years, the trend of outlet shopping in general and outlet shoes in particular has been growing and becoming a new trend. Therefore, more and more outlet stores are opened not only by the brand itself but also by other private entities [5] to meet the above demand.

Difference between outlet and regular stores

A majority of the products sold by clothing and accessory manufacturers at outlet stores are specifically manufactured for outlets using lower-quality materials and manufacturing processes than their higher-priced products sold in regular stores. [6] [7]

Outlet stores often have more stringent return policies than regular stores, and manufacturers will typically not allow returns or exchanges for products purchased at outlets stores at their regular stores. [8]

Related Research Articles

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<span class="mw-page-title-main">Nordstrom</span> American luxury department store chain

Nordstrom, Inc. is an American luxury department store chain headquartered in Seattle, Washington, and founded by John W. Nordstrom and Carl F. Wallin in 1901. The original Wallin & Nordstrom store operated exclusively as a shoe store, and a second Nordstrom's shoe store opened in 1923. The growing Nordstrom Best chain began selling clothing in 1963, and became the Nordstrom full-line retailer that presently exists by 1971. The company founded its off-price Nordstrom Rack division in 1973, and grew both full-line and off-price divisions throughout the United States in the following years. The full-line division competes with department stores including Bloomingdale's, Macy's, Neiman Marcus, and Saks Fifth Avenue, while the off-price division competes with retailers including the TJX Companies and Ross Stores. Previous expansions beyond the contiguous United States include Puerto Rico (2015–2020) and Canada (2014–2023).

<span class="mw-page-title-main">Variety store</span> Retail store that sells a wide range of inexpensive household goods

A variety store is a retail store that sells general merchandise, such as apparel, auto parts, dry goods, toys, hardware, furniture, and a selection of groceries. It usually sells them at discounted prices, sometimes at one or several fixed price points, such as one dollar, or historically, five and ten cents. Variety stores, as a category, are different from general merchandise superstores, hypermarkets, warehouse clubs, grocery stores, or department stores.

<span class="mw-page-title-main">JCPenney</span> American department store chain

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<span class="mw-page-title-main">Harold Alfond</span> American businessman

Harold Alfond was an American businessman who founded the Dexter Shoe Company and established the first factory outlet store.

A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.

<span class="mw-page-title-main">Big-box store</span> Physically large retail establishment

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<span class="mw-page-title-main">Sawgrass Mills</span> Shopping mall in Florida, United States

Sawgrass Mills is a shopping mall in Sunrise, Florida owned by Simon Property Group. With 2,370,610 square feet (220,237 m2) of retail selling space, it is the eleventh largest mall in the United States, the largest single story outlet mall in the U.S., the largest shopping mall in Broward County, the second largest mall in Florida and the Miami metropolitan area after the Aventura Mall, and the third largest shopping mall in the southeastern United States.

Famous Footwear is a nationwide chain of retail stores in the United States dealing in branded footwear, generally at prices discounted from manufacturer's suggested prices. The chain is a division of the St. Louis–based Caleres and had more than 1,125 stores in 2010.

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Steve & Barry's was an American retail clothing chain, featuring casual clothing, footwear and accessories. Headquartered in Port Washington, New York, the chain operated 276 stores in 39 states before liquidating throughout 2008 and 2009.

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<span class="mw-page-title-main">Vanity (clothing)</span> American specialty chain of fashion retailers

Vanity, also known as Vanity Shops, was an American specialty chain of fashion retailers that sold apparel and accessories targeted to fashion-conscious young females, online and in stores. The company was headquartered in Fargo, North Dakota. The fashion retailer's clothing items ranged in size from zero to 17 with pants inseam lengths of up to 37 inches (940 mm). Vanity filed for bankruptcy and closed its stores in 2017.

<span class="mw-page-title-main">Settlers Green</span> Outlet shopping center in North Conway, New Hampshire, United States

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Sears Hometown and Outlet Stores Inc. was an American retail company that sold home appliances, lawn and garden equipment, apparel, mattresses, sporting goods, and tools. The company had four subsidiary store formats: Sears Hometown, Sears Outlet, Sears Hardware and Appliance, and Sears Home Appliance Showrooms. Sears Hometown and Outlet Stores is based in Hoffman Estates, Illinois. Sears Hometown and Outlet Stores was founded in April 2012. The company was a spun off from Sears Holdings in 2012. By May 2019, Sears Hometown and Outlet Stores and its independent dealers and independent franchisees operated a total of 639 stores across 49 states as well as in Puerto Rico and Bermuda. On June 3, 2019, it was announced that Transform Holdco would acquire Sears Hometown and Outlet Stores. As per the deal, Sears Hometown needed to divest its Sears Outlet division to gain approval. The company ceased to exist on October 23, 2019, when Franchise Group acquired the Sears Outlet division and Transform Holdco acquired the rest of the company.

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<span class="mw-page-title-main">The Outlets at Montehiedra</span> Shopping mall located in San Juan, Puerto Rico

The Outlets At Montehiedra, formerly known as the Montehiedra Town Center, is an enclosed shopping mall in San Juan, Puerto Rico. Anchor stores for the mall are a Marshalls MegaStore, Tiendas Capri, Old Navy, and a Home Depot as an out parcel. The former Kmart, which served as an anchor to the mall from the very beginning which closed in 2021, has found replacement by a Ralph's Food Warehouse and a TJ Maxx. The mall also features a 14-screen Caribbean Cinemas.

References

  1. Pérez-Peña, Richard (2007-11-17). "Harold Alfond, Donor and Shoe Factory Owner, Dies at 93". The New York Times. ISSN   0362-4331 . Retrieved 2021-09-12.
  2. 1 2 3 4 "A Survey of Outlet Mall Retailing: Past, Present and Future". insead.edu. Archived from the original on 2016-03-03. Retrieved 2012-06-15.
  3. 1 2 3 4 Hartshorn, Truman Asa (1992). Interpreting the City: An Urban Geography (2nd ed.). New York: John Wiley & Sons. p. 374. ISBN   978-0-471-88750-8 . Retrieved 25 July 2023.
  4. rvl. "All Outlet Shopping Malls and Centres in the USA (All states)". factoryoutletstores.info.
  5. Truong Quoc Dat. "vietnam outlet shoes". giayoutletvietnam.info.
  6. Chao, Mary. "Q&A: The differences between an outlet and mall store". Democrat and Chronicle. Retrieved 2023-01-22.
  7. "Retail vs. outlet store: Can you tell which outfit costs more?". TODAY.com. Retrieved 2023-01-22.
  8. "Outlet shopping: The deal is in the details". Consumer Advice. 2019-07-10. Retrieved 2023-01-22.