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Outlet

In retail and business, an outlet is a store, branch, or sales location through which a company sells goods or services directly to customers.

By Ethan Anderson| Reviewed by Olivia Bennett, Standards & Fact-Checking Lead| Updated July 26, 2026|2 min read| Fact-checked

In retail and business, an outlet is a store, branch, or sales location through which a company sells goods or services directly to customers. The term is also used more specifically for outlet stores, which often sell a company’s branded goods at discounted prices. In Canada, the term is used in the same retail sense as in other English-speaking markets, especially for outlet malls and outlet stores that sell branded merchandise directly to consumers.

Retail meaning

In retail, an outlet is a physical or online place where a business sells goods or services directly to consumers. It is often used synonymously with a retail outlet or branch location.

Outlet store

An outlet store usually refers to a shop run by a manufacturer or retailer that sells branded goods at reduced prices. These stores are commonly associated with clearance, excess stock, returns, or lower-priced product lines made for outlets.

Company-owned outlets

In some business and legal contexts, an outlet is a company-owned location operated directly by the franchisor or parent company. This distinguishes it from a franchised outlet owned by an independent operator.

Other meanings

Outside retail, outlet can also mean a passage for liquid or gas, a device for electrical plugs, or a means of expression for feelings or creativity. These meanings are separate from the business use.

Key facts

  • In commerce, an outlet can mean a store or sales point used by a company to serve customers directly.
  • An outlet store is often associated with discounted merchandise, including surplus, closeout, or factory-second goods.
  • Some business references use outlet to mean a company-owned branch rather than an independent retailer.
  • Outlet stores are common in Canada, especially in outlet malls.
  • The word has other non-retail meanings, but the retail sense is common in business contexts.
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Canadian context

The term is used in Canada in the same retail sense as in other English-speaking markets, especially for outlet malls and outlet stores that sell branded merchandise directly to consumers.

Frequently asked questions

What does outlet mean in retail?
In retail, an outlet is a store or sales location where a company sells goods or services directly to customers.
What is an outlet store?
An outlet store is usually a shop run by a manufacturer or retailer that sells branded goods, often at reduced prices.
Are outlet stores always cheaper?
They are often cheaper than regular stores, but pricing and merchandise can vary by brand and location.
What kinds of goods are sold at outlet stores?
Outlet stores may sell surplus stock, returns, closeouts, factory seconds, or products made specifically for outlets.
Is an outlet the same as a retail branch?
In many business contexts, yes. An outlet can mean one store or branch within a company’s retail network.

References

  1. VeriFeehttps://www.verifee.com/glossary/outlet/
    Supports: Retail meaning as a physical location within a merchant’s business network
  2. Cambridge Dictionaryhttps://dictionary.cambridge.org/dictionary/english/outlet
    Supports: General dictionary meanings including retail shop, organization, and other non-retail senses
  3. Cambridge Dictionaryhttps://dictionary.cambridge.org/us/dictionary/english/retail-outlet
    Supports: Definition of retail outlet as a store that sells goods to the public
  4. Climb the Ladderhttps://climbtheladder.com/what-does-outlet-mean-in-shopping-the-real-definition/
    Supports: Outlet-store explanation, discounted prices, and inventory liquidation
  5. AllBusinesshttps://www.allbusiness.com/dictionary-retail-outlet-4964820-1.html
    Supports: Retail outlet definition as a store selling merchandise and/or services directly to the public
  6. Oxford Learner's Dictionarieshttps://www.oxfordlearnersdictionaries.com/definition/english/outlet
    Supports: Retail shop meaning, discounted-price store meaning, and other senses
  7. The Free Dictionaryhttps://www.thefreedictionary.com/outlets
    Supports: Commerce meaning, store selling goods of a particular producer, and other meanings
  8. Longman Dictionary of Contemporary Englishhttps://www.ldoceonline.com/Business+basics-topic/outlet
    Supports: Business sense of outlet as a shop or organization through which products are sold, including outlet stores