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Most major retailers had a few outlet stores scattered around the country. Many were located far outside metropolitan areas, often in nearly unmarked and not-so-glamorous strip malls. These outlets were purposely placed in out-of-the-way places so they would not compete with the retail stores.
Somewhere along the line that all changed. Computerized inventory management helped retailers better manage their inventory. This reduced the amount of excess inventory that would end up being sold at outlets. Finally, retailers realized that there was a market for their brands, at a lower price point. One source is called made-for-factory merchandise. Outlet stores are stocked with goods manufactured specifically for the outlet stores. The retailers are making lower cost and lower quality knockoffs of their own full-price merchandise using different fabric, stitching, buttons and zippers.
Another type of outlet merchandise is private label.
Most people do not realize this. Neiman Marcus Last Call Studio is upfront about selling almost entirely factory-made and private label merchandise. When you look at an outlet store price tag what does it mean?
How much money are we really saving? To some extent that depends on where you live, since some states have laws about what can appear on a price tag. Marshalls and TJ Maxx These stores actually approximate what an outlet store used be. They do carry actual discounted designer goods but with more than 2, stores they have to be selling other merchandise as well. An outlet mall is a shopping center in which most of the individual tenants are owner-operated outlets. What that means is that some of the stores in an outlet mall are actually regular retail stores.
When an outlet mall is being developed, the developers require tenants, through their leases, to sell a certain percentage of merchandise at a discount compared with retail-store prices. This means that at some outlet stores only a small percent of the merchandise is being sold at a discount to full-retail. Find free movies, concerts, lectures, plus discounts on entertainment and events in Chicago. Entertainment and Arts. Find free days at museums, plus free and discount special events and Chicago attraction discounts.
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