Retail Vs Outlet Shopping Essay

2065 words - 8 pages

"The average outlet shopper spend over two hours at the outlet mall (60 percent longer than at regional miles malls), and the average expenditure per outlet visit per shopper is 79 percent higher than at regional malls” (Couglan and Soberman, 6-7). Retailing dates back all the way back to 6,000 BC, when it was known as the bartering system. It was introduced by
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Mesopotamia tribes, and then adopted by Phoenicians. During this time, money was not yet invented so people would trade goods. When money was invented, bartering slowly transitioned to retailing (Anderson, 1). The concept of outlet stores dates back to over a hundred years ago. Clothing companies first created the idea to offer excess or damage goods to employees at the price discounts. The factory stores then later starting selling to non employees as well. In 1936, Anderson- little (a men's clothing manufacturer) opened to be the first set outlet stores, which were located far from the primary retail stores. This outlet store was for anyone who was looking to purchase goods at a discount (Couglan and Soberman, 4). In today's modern age, outlet stores are now using the concept of getting excess good at a price discount, against the customers. Customer shop at the outlet stores because they are known for a way to save money. Outlets stores are using retail prices for some of their merchandise fully aware that the customers shop at these outlet stores to get discounted prices not retail prices. Retail stores are better to shop at than outlet stores because of the location of the store, quality of their merchandise, and their consistency on keeping up with trends.
Retail stores are better than outlet stores to shop at because of the location of the store. Theo Estes explains how the location of the store is convenient for retail customers (1). Most retail stores are located in commercial areas and cities. They are also usually surrounded by other retail stores in malls and strip malls. This makes it more likely and easier for the customer to shop there, especially since it is close by and there are other retail stores around it. “Store location is a retailer’s most costly and long-term marketing-mix decision. Unlike a bad pricing or promotional decision, a poor store location adversely affects retailer performance for several years (Fox, Postrel, McLaughlin, 3)”. Customers are more likely shop at a store that is convenient for them to get to, unlike most outlet stores that are usually far from commercial
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areas. If a retail location is inconvenient to go to, the customer may not shop there or may shop there less often. Also, when stores are in commercial locations, they are easier to remember
how to get to, unlike outlet stores which are located in rural areas where there may not be buildings to help you remember where it is located. This would result in lower sales for the retailer which could potentially put the retail store out of business. “Location is typically prime...

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