Off-price retail

Off-price retail sells branded or other goods below their usual market prices. Retailers often buy opportunistically from excess inventory or cancelled orders, so the assortment can change frequently.

Purchasing opportunities may come from overproduction, closeouts, cancelled orders or other surplus stock. The retailer often accepts less predictable ranges and quantities in exchange for an attractive buying cost. It must assess resale demand, product condition and replenishment limits because a profitable lot may not be available again.

For example, a retailer could buy a one-off lot of branded kitchenware shown on a supplier's stock list. Customers receive lower prices, but replacement stock may disappear once that lot sells. An outlet store is one possible discounted format; off-price retail describes a broader sourcing and selling approach.