An outlet mall is a shopping center that consists of a group of stores, usually located outside of a town or city, where manufacturers sell their merchandise directly to the public. These stores offer products at reduced prices compared to regular stores due to being overstock, closeout, factory seconds, or lower-quality versions manufactured specifically for outlets. Traditionally, a factory outlet was a store attached to a factory or warehouse, sometimes allowing customers to watch the production process. However, in modern usage, outlet stores are typically manufacturer-branded stores such as Gap or Bon Worth grouped together in outlet malls.
Outlet stores have become popular due to the affordable prices and everyday bargains they offer. Nowadays, outlets have taken on a life of their own, and most manufacturers have dedicated lower-priced lines for outlet stores. Manufacturers now make goods specifically for outlet stores due to the booming industry. There are almost 500 outlet malls in the U.S. compared to just over 100 in 1988.
Outlet stores can offer an affordable way to score quality retail items from name brands. However, outlets are typically built in inconvenient locations that require prospective customers to travel outside of their local area. The reason outlets are located in far-flung places is because real estate and rent are cheaper further away from populated areas.