| Outlet Malls Definition - Definitions for the Clothing & Apparel Industry | |||||||||||
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An outlet
mall (or
outlet
centre)
is a type of
shopping
mall, in
which
manufacturers
sell their
products
directly to
the public
through
their own
branded
stores.
Other stores
in outlet
malls are
operated by
retailers
selling
returned
goods and
discontinued
products,
often at
heavily
reduced
prices.
Clothing,
sporting
goods,
electrical
products,
cosmetics,
and toys are
among the
types of
items sold
at outlet
malls.
Outlet malls first appeared in the United States as a development of the traditional factory outlet: a store attached to a factory or warehouse, selling surplus stock at discounted prices. An outlet mall places several such outlets under one roof in a convenient location, usually an "out-of-town" site. The out-of-town site minimises overhead costs. And they may be legally necessary as conventional retailers may have contractual restrictions on the manufacturer on the location of the factory outlets so as to minimise competition with the traditional retailer. Therefore, factory outlets are usually located at least 20 kilometers outside of major cities, and consumers must account for gasoline costs and driving time when calculating their net savings. Outlet malls have since spread to the European Union and to many other parts of the world. During the early 2000s, the U.K. company McArthurGlen opened the first outlet malls in Italy (Milan and Rome) and Portugal (Lisbon).
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