Outlet shopping refers to the process of shopping at retail outlets, which are stores that sell brand name merchandise at discounted prices. An outlet store may be situated by itself, but is most often located amongst other outlets as part of an outlet mall, to facilitate outlet shopping. Outlets are often located at a distance from the retailer’s main wholesale accounts and just outside of major cities, in order to keep overhead prices and retailer competition at a minimum. Items most commonly found on an outlet shopping excursion include clothing, fashion accessories, electronics, sporting goods, toys, and cosmetics.

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An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be brick and mortar or online. Traditionally, a factory outlet was a store attached to a factory or warehouse. Often these stores are grouped together in outlet malls. The invention of the retail outlet store is often credited to Harold Alfond, founder of the Dexter Shoe Company.[citation needed]

"Professional" outlet store shoppers[vague] report variances in quality and price when comparing true factory stores with general outlet stores. The latter may have higher instances of manufacturers' "overruns" and unmarked seconds and blemished merchandise. Factory stores usually mark any seconds and blemished merchandise as such, and tend to offer newer models. Stores that carry only one brand of goods are often not factory stores.

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