An off-price retailer is a retailer that buys goods at prices below regular wholesale prices and sells them at prices below regular retail prices. These retailers are not part of the traditional distribution chain, but rather take advantage of surplus, out-of-stock items, or minor defects in goods.
The main examples in this category are factory outlets (operated by the manufacturer), independent off-price retailers (e.g. TJ Maxx), and club stores (e.g. Costco, Sam’s Club). Their business model is based on high turnover and providing a “good deal” to the consumer.
