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Shopping Guide

What Is Outlet Shopping?

The definitive answer to the difference between outlet and retail, and how you can score the best deals by understanding where the products actually come from.

By VisitOutlets Editorial Team · Updated 2026-07-18

A stylish woman, smiling, holding several shopping bags from luxury brands in a chic urban setting.

The Basics: Outlet vs. Retail

Before we dive deep, let's define the two main terms. Understanding this difference is the key to successful outlet shopping. A retail store offers the brand's latest, full-price collection, embodying the most current trends. An outlet store, in contrast, is a channel for brands to sell merchandise at permanently reduced prices. This distinction is crucial for managing your expectations and maximizing your savings.

Retail Store

This is the 'normal' store as you know it on the high street or in a large department store. Here you will find the newest collections of a brand, straight from the catwalk. The prices are set at the full Manufacturer's Suggested Retail Price (MSRP).

Outlet Store

An outlet store sells products from a brand at a reduced price. These stores are often located in special outlet centers outside of city centers. The discounts are available year-round, not just during seasonal sales.

Where does the merchandise in an outlet come from?

This is the most frequently asked question, and the answer is layered. The products in an outlet store usually come from three sources, and knowing them helps you identify the best bargains:

  • Made-for-Outlet (Factory-Made): A significant portion of the products (often 80-90%) is produced specifically for the outlet. These items resemble the retail collection but are often made with slightly more affordable materials or a simplified design to justify a lower price. This is not 'inferior quality', but a different product line designed to offer value.
  • Excess Inventory (Overstock): These are products from the regular retail stores of previous seasons that were not sold. These are the 'real' gems you are looking for: the exact same product, but for a fraction of the price. This is where you can find true luxury for less.
  • Samples and Irregulars: A small percentage may consist of samples (prototypes), returned items, or products with minor, often unnoticeable, manufacturing flaws ('seconds'). These can offer the deepest discounts if you're willing to inspect them carefully.

Is outlet shopping worth it?

Absolutely! If you know what to look for, you can find fantastic deals. Here are the main advantages:

  • Price & Value: The most obvious benefit. You can buy premium and luxury brands for a price that is much closer to your budget, offering incredible value for money.
  • Brand Accessibility: Brands that are normally out of reach suddenly become affordable, allowing you to own high-quality items without the high-end price tag.
  • The 'Thrill of the Hunt': For many, it's the sport of finding that one unique item for a great price. It provides a rush you won't easily find in a regular store.

The key is to go with the right expectations. You may not find the very latest item from this season's runway, but you can score timeless classics and high-quality basics that will last for years. Ready to put your new knowledge to the test?

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Frequently Asked Questions about Outlet Shopping

'Made-for-outlet' (or factory-made) items are specifically produced for outlet stores. Brands use slightly different designs or more cost-effective materials to offer them at a lower price point from the start. They are not fakes, but a distinct product line.

It can be tricky. Look at the labels. Some brands use different tags, logos (e.g., a different color or an extra symbol), or model numbers for their outlet-specific lines. Also, comparing the quality of the material and stitching to what you know from the retail store can be a clue.

Mostly, yes. However, be critical of the "original price." For 'made-for-outlet' items, this original price may have never been charged in a retail store. The real value is what you are willing to pay for the item, not the discount percentage.

A 'factory outlet' was originally a single store attached to a factory. An 'outlet center' (or outlet mall) is a collection of many different brand outlet stores in one location, creating a complete shopping destination. Today, the terms are often used interchangeably.

There are several reasons. Firstly, land is cheaper, allowing for larger stores and ample parking. Secondly, it prevents direct competition with the brand's full-price retail stores in the city centers.

No. The majority (often over 80%) is 'made-for-outlet'. The items from previous seasons are the 'excess inventory', which are often the most sought-after deals but make up a smaller part of the total stock.

No. High-end luxury brands are very selective about their outlet presence. They are typically only found in the more premium outlet centers, like those operated by The Bicester Collection or McArthurGlen.

Yes. Outlet centers are often outdoors, set up like a village, which can be a more pleasant experience on a sunny day. The focus is purely on shopping, with less emphasis on entertainment like cinemas that you might find in a regular mall.

Outlets are fantastic for timeless basics. Think of classic leather handbags, quality denim jeans, basic t-shirts, and sportswear. These items are less trend-sensitive, so it matters less if they are from a previous season.

The term comes from the idea of factories having an 'outlet' to sell their overstock, imperfect items, or samples directly to the public, bypassing the traditional retail chain.