Off price, also known as off-price retailing, refers to retailers that sell brand name or designer merchandise at discounts typically between 20-60% below department stores’ prices. Some examples include TJ Maxx, Marshalls and Ross.
Key characteristics of off-price retailers include:
- Inventory constantly changes based on what brands are willing to liquidate
- Items may be last season or slightly irregular to allow for deep discounts
- Treasure hunt atmosphere as customers don’t know what they’ll find
- Prices are preset by brands and products can’t be easily reordered
Compared to outlets, off-price retailers have less direct ties to brands and acquire overstock inventory more opportunistically. This business model allows providing luxury or premium brands at affordable prices without compromising on style or quality.
The unpredictable selection fosters impulse buys and repeat visiting. Pricing below typical full-price stores drives volume and introduces customers to new brands. Off-price shopping has grown popular for its convenient discounts.