If you are an avid shopper then the phrase “outlet mall” should not sound new to you. Come on, huge mall with name brands all at great discounts? Who hasn’t heard of them? A more important question is how do these malls sell name brands such as Nike, Aeropostal, and Armani all at reduced prices? The answer to that question is very simple, and it is one that you will love.
Alright here is a quick description of how the retail industry works. When a brand sells some merchandise, they try to sell as much of the stock as possible, when the new line comes in, they put the leftovers from last year on the clearance rack, something that we are all familiar with. However you can’t keep everything on the clearance rack and eventually the store will sell all its left over stock to the outlet chains which can offer them at greater discounts so the company that makes the clothing can still make some kind of profit on them, even if it is only a few dollars.
