We all need a hundred products every day. Right from waking to using toothpaste, to getting ready for work, chilling after work, and even winding up after a long day with a cup of tea, every action involves products and services.
So where do we avail all of these from? Stores and online shopping are the only way out. However, for long, the terms outlet and stores have been used interchangeably. Let’s check the concept behind the two and the difference between them.
What is a retail store
A store or shop is a place where goods and services are sold. The physical store that you can visit, have a look at products offered, buy, exchange or return them is a store. And with the advent of technology, online retail too has become a medium for retail brands and suppliers.
Now Retail is the process of selling goods or services through multiple channels of distribution with the aim to earn a profit. It involves well-established supply chains, that involve many people or agencies.
A retailer bridges the supply gap, by providing small orders to a sizeable number of individuals or businesses. A retail store can sell products, goods, and services from various brands under one roof.
There are many types of retail outlets today- departmental stores, supermarkets or hypermarkets, discount shops, convenience stores, specialty stores, etc.
What is an outlet?
Outlets, generally, are stores that sell products from a single brand or a single type of good or service, mostly at a rate that is far lesser than the manufacturer’s suggested retail price.
The word outlet could mean two things- factory outlet or outlet store. Though traditionally, outlets meant more of factory outlets, in recent times, they also can be a part of malls.
Products sold through an outlet, also include an inventory of those which are a part of the discontinued stock.
Differences between an outlet and retail store
1. Supply chain
The key difference between a store and an outlet is that the latter directly sells products from its manufacturer to the customers. It does not involve the services of middlemen.
Secondly, retail means full price. Here goods are sold at a full or even premium price. However, in an outlet store, products are sold at an off-price. This could also translate to goods that are in excess, slow-moving or superannuated.