The ongoing Retail slowdown has made retailers think twice about their High Street and Mall strategy. Retailers are seeing lower footfalls and hence their plans to enhance the factory outlets. United Colors of Benetton – UCB is all set to open 10-12 outlets to flush out unsold inventory.
The difference between in-house sale and factory outlets is that the latter serve as an outlet to liquidate excess stock, seconds as well as out of fashion inventory. Brands don’t want to do a year round sale and hence the concept of factory outlets. These are usually located on the outskirts of metros.
Prestige Constructions which runs the Forum Mall is all set to open a Value Mall in Whitefield, Bangalore to cater to factory and other discount retailers. Tommy Hilfiger and Puma are likely tennants in this mall in addition to other brands. International retail practices data suggest that their will be one factory outlet for every 6 regular store. Brand Factory from Future Group is one such facility to flush out excess of Future Group’s Retail inventory, especially from Central Mall.