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- Outlet stores exist for several reasons123:
- To get rid of factory seconds or outdated merchandise at discounted prices.
- To offer attractive prices in locations far from central shopping districts.
- To manage inventory.
- To engage in price discrimination through consumer self-selection.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Why do outlet stores exist? The answer may seem obvious to most shoppers—they are places where companies get rid of factory seconds or outdated merchandise at fire-sale prices.hbswk.hbs.edu/item/why-do-outlet-stores-existOutlet stores offer attractive prices in locations far from central shopping districts. The main perspectives on why outlet stores exist can be broadly classified into inventory management, geographic segmentation, and price discrimination through consumer self-selection.www.hbs.edu/faculty/Pages/item.aspx?num=51775The growth of outlet mall popularity can be attributed to several factors:
- Improved accessibility across the country due to better transportation networks;
- Increase in consumer spending power;
www.outletshoppers.com/the-history-of-outlet-malls/ - People also ask
Donald K. Ngwe explains why outlets still exist. Created in the 1930s, outlet stores allowed retailers to dispose of unpopular items at fire-sale prices. Today, outlets seem outmoded and unnecessary--stores have bargain racks, after all. See more
One leading product manufacturer in the fashion apparel and accessories category agreed to provide Ngwe with consumer data in return for a detailed analysis of its customers. Behind … See more
"By virtue of going to an outlet, you are revealing something about yourself to the seller," says Ngwe. "By the fact that you drove there, the [retailer is] going to offer you a lower-quality … See more
At HBS, Ngwe plans to continue to looking into the pricing, investigating what it says both about companies' selling strategy and about their customers' buying preferences. His latest research … See more
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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 th…
Wikipedia · Text under CC-BY-SA license- Estimated Reading Time: 5 mins
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