The introduction of outlets

What is an outlet store

An outlet store, factory outlet or factory store is a brick-and-mortar or online store where manufacturers sell their merchandise directly to the public.

Products at outlet stores are usually sold at reduced prices compared to regular stores due to being overstock, closeout, returned, factory seconds, or lower-quality versions manufactured specifically for outlets.

Origins — the 1930s

Outlets first appeared in the eastern United States in the 1930s. Factory stores started to offer damaged or excess goods to employees at a low price.

Growth — the 1980s and 1990s

Throughout the 1980s and 1990s, outlet centres grew rapidly in the United States. A typical outlet centre in the U.S. is opened with between 100,000 and 200,000 square feet (about 1 to 2 hectares) of retail space. This can gradually increase to 500,000 to 600,000 square feet (around 5 hectares). The average outlet centre has an area of 216,000 square feet. In 2003, outlet malls in the U.S. generated $15 billion in revenue from 260 stores.

The number of U.S. outlet centres increased from 113 in 1988 to 276 in 1991, to 325 in 1997 and to 472 in 2013.

Outlets are now representative of brand discount and cost performance in the consumer products industry.

Outlets today

Premium outlets in the U.S. own more than 200 brand factory stores, and customers from all over the world shop in different outlet centres. For brands, outlets clear inventory without eroding mainline pricing; for customers, they are the most reliable route to authentic product at a discount.

That is the supply COOLUX brings to China: outlet warehouse stock, verified and traceable, priced at outlet level.