by Dana Dabagova
Published
Outlet and full price work together when they have different, stated roles: full price builds desire and relationships around the current season, outlet recruits new clients and clears stock without devaluing the brand. That takes rules on assortment, timing, pricing and client ownership.
Why the two channels clash
Conflict starts when the same product reaches outlet too soon, when stores are too close to each other, or when sales targets push both channels to fight for the same client.
Four rules that work
- Assortment: define what goes to outlet, how many weeks after the season ends and in what quantities.
- Price: set a minimum, stable gap from full price and limit extra discounts decided in store.
- Service: outlet has its own, faster standards, still recognisable as the same brand.
- Clients: decide how clients captured in outlet are invited to discover full price, and who looks after them.
Outlet as the front door
For many clients outlet is their first contact with the brand. If they are welcomed well and their details are collected with care, some of them can become full-price clients. That step has to be designed: it does not happen by itself.
What to measure
- Share of outlet clients who later buy at full price.
- Combined margin of both channels in the same area, not of the single store.
- Days of stock ageing before the move to outlet.
- Actual average outlet discount against the planned one.
Related questions
Should both channels report to one person?
It helps a great deal. When full price and outlet answer to the same person, decisions on stock, prices and clients are made looking at the combined result rather than one channel's.
Related service: Retail performance and store turnaround