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What is Off-Price Fashion?

22 June 2022

Off-price retail is growing faster than any retail sector. But what is off-price fashion? In this guide, we’ll explain to you what off-price retail is and how it can benefit your brand.


Off-price is selling branded or designer stock to customers at a discounted price that is typically significantly lower than full-price stores. 

The fastest-growing sector within the retail industry, off-price is invaluable in helping brands manage their excess industry. Excess inventory that has been unable to be sold via full-price channels has become hugely problematic for brands; along with being incredibly wasteful, it is not financially viable. In order to have proper cash flow and run a successful business, they need to find a new channel to sell this excess inventory. 

Excess inventory can occur for a variety of reasons, from the unpredictable nature of consumer demand to cancelled orders, seasonal products, overproduction, and manufacturing errors. Historically brands and manufacturers alike have been stuck with this excess inventory storing it for long periods of time in warehouses or disposing of it in non-environmentally effective ways—either way, causing a substantial loss in profit.

This is where off-price wholesalers come in B2B Wholesale distributors will then acquire this excess stock from a variety of brands and designers, taking their unwanted goods at a heavily discounted price. As off-price retailers buy these goods at a highly discounted price, they are able to pass this discount onto the customer and still turn a profit. This means that anything you get from an off-price store will always be significantly cheaper than any boutiques, department stores, and other full-price retailers.

Off-price is hugely beneficial for all parties involved:

Off-price gives brands an opportunity to move excess revenue, access new markets and maintain a healthy cash flow. As excess inventory ties up cash and costs money to store in warehouses or to dispose of, it is also a financial burden for brands. Off-price offers not only offer brands a financially beneficial solution but a more eco-friendly one too. With the growing concerns from consumers over the environment, brands are under increasing pressure to take action to combat waste and every level. Off-price is an attractive solution that rehomes excess inventory, extends the product lifecycle and ensures they do not go to landfills or are disposed of in unsustainable ways. 

Off-price gives consumers the ability to access premium brands at a fraction of the price. This potentially gives them browse bargains all year round, and the excitement of bargain hunting. Off-price can be likened to a treasure hunt, you don’t know which luxury gem you’re going to find each time. It also gives conscious shoppers the ability to know that by shopping at off-price retailers they’re shopping in a more eco-friendly manner and saving items from landfills.

Off-price retailers
While stocking your shop with off-price can come with a level of unpredictability, the benefits far outweigh this. Off-price retailers are able to make their stores attractive to customers with heavily discounted prices while also being able to turn a decent profit. Plus, once a customer realises that they can get a bargain, they’ll keep coming back.

Want to find out how Take Off can help you maximise your profits through dedicated services and exclusive offers while contributing to saving our planet? Get in contact with us today.