off-price retailer
Quick Summary
An off-price retailer is a type of discount retailer that purchases merchandise at below-wholesale prices. They then sell these goods for less than standard retail prices. This strategy differs from ordinary discounters, who buy at the market wholesale price and accept lower margins.12
Off-price retailers typically carry a constantly changing selection of overruns, irregular items, and leftover merchandise. They have made significant inroads in the clothing, footwear, and accessories markets.2
Primary examples of off-price retailers include:
* Factory outlets: Owned and operated by manufacturers, these outlets stock surplus, discontinued, or irregular products.
* Independent off-price retailers: These businesses, often run by entrepreneurs or divisions of larger companies, feature a rapidly changing collection of higher-quality merchandise.
* Warehouse clubs: Operating from large, low-cost facilities, these clubs charge an annual membership fee and offer a limited selection of brand-name items at deep discounts.2
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