- The word "outlet" originally referred to normal retail stores, but it has now come to be used to describe stores where manufacturers and makers/wholesalers can sell off their dead stock. Such stores first began to appear in the United States a little over a decade ago when there was a serious worldwide consumer recession and excess stock was a problem. In outlet retailing, goods such as own-brand merchandise from previous seasons, seconds and samples are sold at discount prices. Outlets (which originally meant factory outlets) appeal to the price consciousness of consumers, and are increasing sales.
- The most well-known large outlet stores in Japan are the "Rhythm Outlet Store" in Saitama Prefecture and the factory outlets in "Tsurumi Hana Port Blossom" in Tsurumi Ward, Osaka City. Outlet stores are now also being planned for Yokohama.
- All the following points relate to the outlet stores in Tsurumi. 40 outlet stores have now moved into Tsurumi, and although there is considerable store changeover, there are no empty stores at present and stores selling famous brands such as Nike, Reebok, Benetton, Eddie Bauer, Edwin and Asics have opened. Many of the stores are American-owned. On weekdays, stores are open between 11am-8pm and attract around 4,000 customers per day. At weekends, opening hours are 10am-8pm and there are approximately 20,000 customers per day. The total number of customers in a year is approximately 3 million. Over 70% of customers currently come by car, and at weekends the 1,200-car parking lot is full. An extension to the subway system opening on August 29 this year means the stores will be just 5 minutes on foot from the nearest station, and so further increases in the number of customers are anticipated.
- The discounts offered vary from store to store, but range between 30-70%. Rather than making profits, the aim is to convert stock into cash. Each item has a label showing varying categories of merchandise (out of line, second class, sample and non-catalog item), and a tick in the appropriate box indicates which category the item belongs to. A cursory inspection indicates that by far the majority are out of lines. Basically speaking, the previous year's products are on sale at low prices, but no refunds are given.
- Casual wear and footwear (particularly sports shoes) are popular items suitable for outlet stores. Mens wear is popular, possibly because men are less concerned about wearing last year's fashions and second quality, but womens wear is somewhat less so as women seem to prefer buying the most fashionable clothing at specialist stores and department stores.
- Sales are aimed at couples in the 25-35 age group with comparatively small children, but customers in their teens and early twenties are also common.
- Until the Tsurumi outlet center was established in March 1995, there was fierce opposition from local specialist sports shops and wholesale groups, and some famous stores were unable to join. Mizuno, for example, gave up trying to open a store there, and instead founded a subsidiary called M.N.C. to clear stock. Some other companies created second brands so that they could open stores.
- The disadvantage of outlet stores is that they may not have enough the sizes and colors to satisfy customer. Depending on the season, goods may also be in short supply, and outlet stores may use clearance goods from "proper" (original) stores to make up for these shortages. Goods are apparently never made especially for outlet stores.
- Customers feel the Tsurumi outlet center is a safe and reliable place to go shopping. Sales are increasing year after year, and annual sales for this year are hoped to total JY6.5 billion for all stores.
- Sale periods at proper (original) stores are particularly difficult times for outlet stores. "Outlet sales" are held at these times four times a year. As no further cuts in prices can be made, outlet stores instead increase the quantity of merchandise and range of sizes, and offer better quality goods. During the sale period, outlet stores attempt to attract customers by distributing advertising leaflets all over the place and placing five-column advertisements in the national press.
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