What is a Factory Outlet?
The definition of a Factory Outlet
Recently we have seen a huge growth in the number of Factory Outlets in Australia and in fact internationally, so much so that it has now become a trend to use the term 'outlet' on promotional material and advertising.
A Factory Outlet is a manufacturer-owned store selling that firm's closeouts, discontinued merchandise, irregulars, cancelled orders, and, sometimes, in-season, first-quality merchandise.
Having said that, in more recent times, some manufacturers have consolidated into mega companies that own many labels and sell via Factory Outlets that offer many brands. Alternatively we find companies that provide Factory Outlet distribution for several manufacturers.
Definition of Factory Outlet Centre
Outlets centre are Shopping centre that groups more retailers in one location and where most of the centre tenants are the manufacturers of the brand name product they sell. The majority of stores offer all year discounts ranging from 25 % to 75 %.
All merchandise sold is stock surplus to the high street or special buys and is typically sold through stores run by the brands themselves. Merchandise includes fashion, home wares, electrical goods, cosmetics, toys, books, CDs and videos.
The concept allows retailers an opportunity to sell surplus stock direct to the public via a branded shop. Brand equity is safeguarded, while market share and brand awareness increase.