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Definition

Factory outlet

Definition (1):

A factory outlet is a shop or store selling factory-made products directly to the customers for less than present retail prices. Factory outlet malls have become one of the hottest growth areas in retailing.

Definition (2):

The factory outlet is a retail store that sells products directly from the plant to the final consumer at greatly discounted prices.

Definition (3):

A factory outlet is also called a factory shop. It is a store where producers sell their products directly to the public at a highly discounted price. A factory shop center is a producer-owned store selling the stock of that firm directly to the public. This stock at a factory shop may either be discounted or first-quality merchandise, damaged, end-of-line, irregulars, and canceled, out-of-date orders at very low prices.

Conventionally, these stores were brick and mortar stores beside the warehouse or factory but currently along with the former mode of function, outlet centers are presented as outlet malls and online stores. The causes of the highly discounted price at these outlet centers are the elimination of retailer costs and distributor costs, the nominal defects which can be visible in the product, clearing up the surplus stock, and the like.

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