Factory Outlets

Goals

To understand why people purchase clothes at factory outlets (also known as outlet stores, or factory shops). This research would be used to show that factory outlets will experience increased demand in the future.

Early Findings

  • According to a report by Dave Ramsey, as of February 2014, there were over 12,796 outlet locations in the United States. Through bargain shopping, these outlets generated between $31 billion to $42 billion in sales.
  • Ramsey mentions that outlet shopping is a pastime in America that is not losing traction. An increasing number of outlet stores are "moving closer to major metropolitan areas and catering to their urban clientele".
  • Value Retail News reported that the average discounts offered by factory stores is 38%.
  • A study by Consumer Reports discovered that most goods at outlet stores were "3% to 72% cheaper than retail locations".
  • Postoast also mentions that factory outlets are usually cheaper compared to retail stores, showrooms, or malls. These items are cheaper at factory outlets even though they are manufactured by the same brand.
  • Some reasons responsible for cheaper pricing at factory outlets include clearance of stock, labeling defects, slight design fluctuations, and oversupply.

Proposed next steps:

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