Outlet store facts for kids
An outlet store is a special kind of shop where companies sell their products directly to you. You can find these stores in a physical building or online. The cool thing about outlet stores is that their products are often sold at lower prices than in regular shops.
Why are they cheaper? Sometimes, the products are extra items (called overstock). Other times, they might be items from a sale that ended (closeout). Some items might have small flaws (factory seconds). Also, some products are made just for outlet stores, often using slightly different materials.
Long ago, a factory outlet was usually right next to the factory or warehouse where the products were made. Sometimes, you could even watch the products being made! Today, outlet stores are usually grouped together in big shopping centers called outlet malls. Famous brands like Gap often have their own outlet stores. Many people say that Harold Alfond, who started the Dexter Shoe Company, came up with the idea of the factory outlet store.
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How Outlet Stores Started
Outlet stores first appeared in the eastern part of the United States in the 1930s. At first, these factory stores sold items that were damaged or extra to their own employees at a very low price. Over time, they started selling to people who didn't work for the company too.
In 1936, a men's clothing brand called Anderson-Little opened an outlet store. This store was not attached to their factory. Until the 1970s, the main reason for outlet stores was to sell off extra or slightly damaged goods.
Growth of Outlet Malls
In 1974, a company called Vanity Fair opened the very first shopping center with many different outlet stores. This was in Reading, Pennsylvania. Throughout the 1980s and 1990s, outlet malls grew very quickly across the United States.
A typical outlet mall in the U.S. usually starts with a retail space of about 100,000 to 200,000 square feet. That's about 1 to 2 hectares. These malls can grow much larger, sometimes reaching 500,000 to 600,000 square feet (around 5 hectares). The average size of an outlet mall is about 216,000 square feet. In 2003, outlet malls in the U.S. made $15 billion in sales from 260 stores.
The number of outlet malls in the U.S. kept growing. There were 113 in 1988, then 276 in 1991, and 325 in 1997. By 2013, there were 472 outlet malls!
Outlet Stores Around the World
Outlet malls are not just in America. In Canada, the Dixie Outlet Mall opened in the late 1980s. Later, Vaughan Mills opened in 1999, and Toronto Premium Outlets in 2013.
In Europe, a company called BAA McArthurGlen has opened 13 malls. These malls have over 1,200 stores and about 3 million square feet (around 30 hectares) of shopping space. One famous "outlet village" is Bicester Village in England. It's a popular stop for tourists, especially from China. Outlet stores have also become popular in Japan since the mid-1990s.
Recently, in Vietnam, shopping at outlet stores, especially for shoes, has become a new trend. Because of this, more and more outlet stores are opening. Some are opened by the brands themselves, and others by different companies to meet the demand.
Outlet vs. Regular Stores
There are some key differences between outlet stores and regular stores.
Many clothing and accessory brands make products specifically for their outlet stores. These items might use slightly lower-quality materials or different ways of making them compared to the higher-priced products sold in their regular stores.
Also, outlet stores often have stricter rules about returns. This means it might be harder to return or exchange something you buy there. Usually, you cannot return or exchange products bought at an outlet store at a brand's regular store.
See also
In Spanish: Outlet para niños
