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These include:. Items in this final category make up the bulk of the items sold at many of the stores in outlet malls across the United States and Canada. These items may be similar to those found in full-line retail locations but are manufactured with lower-quality material or construction methods to make it possible to sell them at a discounted price. Sometimes, brands create entirely separate lines to sell at outlet locations that are not sold in the retail locations.

Not all stores that sell damaged and excess goods are outlet stores, though. Today, these stores primarily purchase their merchandise from the same suppliers that sell to traditional retailers but may buy it piecemeal or place orders more regularly. The reason why overstock retailers can offer in-season goods at discounted prices is that, unlike traditional retailers, they're not subject to buy-back clauses.

At the end of the season, a department store may be required to sell unsold merchandise back to its original supplier, whereas an overstock store typically has to keep unsold merchandise indefinitely.

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If the merchandise can't be sold on clearance in one store, it may be moved to a different store or donated. A true factory outlet sells the damaged and excess items produced by a specific factory, which doesn't necessarily manufacture goods for only one company.

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Factory outlets that only stock one brand are often outlets of factories owned by those brands. For example, the well-known L. Bean factory in Maine only manufactures L. Bean products. Other factories are owned by third parties and manufacture items for a variety of brands. Outlets make it possible for middle- and lower-income shoppers to access aspirational brands that they'd otherwise be unable to afford.

One of the primary strategies used to encourage shoppers to patronize outlet stores is emphasizing the value of the savings to be had at these stores, even when that means inflating the savings.


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