What is the difference between outlet and store

Many retailers, such as Nordstrom, operate discount retail locations. At stores like this, shoppers find a variety of items. 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. 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. 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. By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses.

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Already have an account? Business Mythbusting: Outlet stores might not be as good a deal as you think A day at the outlets might not mean a day full of deals. Many brands now have lower-quality products produced just for the outlet stores. Social Sharing. Related Stories Marketplace: When is a sale really a sale? This will allow you to compete with major brand-name retailers. Typically, retails can be full service or limited stores. That means suppliers can restock the commodities sold there.

Outlets, on the other hand, generally sell discontinued, damaged, or off-season products—which has confused a lot of shoppers in the past few years. If you decide to shop at an outlet, ensure that you carefully check each item before purchasing it.

Search for any defects in closures and stitching. The location or factory where the commodity was manufactured can give you a major hint, in terms of the quality of the product.

Also, take your time to try the products before purchasing them—especially if you are buying clothing items. Furthermore, ignore the sales tag that indicates the original price. If you are not sure of anything, ask! The sales representatives at outlets will be willing to give you the information you need about the merchandise that you want to buy.

At the end of the day, you will be surprised by what you get the next time you go out for outlet shopping. What you need is to be extra careful to avoid buying products with defects. Your email address will not be published. Follow Me! Skip to content.