Burlingame, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Coherent Market Insights published a report, titled, “Off Price Retail Market, By Product Category (Apparel and Footwear, Home Goods, Electronics, Beauty and Cosmetics), By Distribution Channel (Brick-and-Mortar Stores, Online Retail), By End User (Consumer, Business-to-Business (B2B)), By Price Range (Low-end, Mid-range, High-end), By Demographics (Men, Women, Children), - Size, Share, Outlook, and Opportunity Analysis, 2023 – 2030.” According to Coherent Market Insights, global off price retail market is estimated to be valued at $315.78 billion in 2022 and is expected to exhibit a CAGR of 8.5% during the forecast period (2023-2030).
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Analysts’ Views on Global Off Price Retail Market
Off price is the selling of branded or designer items to consumers at significantly lower prices than full-price stores. Off price retail is the store that sell high-quality goods at low prices, as they offer significant discounts over the retail price. The off price retail model relies on the purchase of over-produced, or additional, branded goods at the lower price, thus being able to sell to consumers at a discount compared to other retail stores. These include factory outlets owned and/or operated by entrepreneurs or by divisions of larger retail corporations. Off price retail benefits both consumers, who get access to discounted items, and manufacturers and retailers who can clear excess inventory and recover some revenue that might have been lost otherwise.
Key Trends and Analysis of the Global Off Price Retail Market:
Integration of online and offline channels is one of the key trends expected to augment the growth of the global off price retail market. For instance, the integration of online and offline channels has become a prevailing trend in the retail industry, and off-price retailers are no exception. Several off price retailers around the world are implementing omni-channel strategies and investing in e-commerce platforms to provide a seamless shopping experience. Omnichannel retail is a business model in which all existing channels become completely integrated to offer customers a seamless shopping experience. This in turn allows customers worldwide to access off-price deals both in-store and online, providing convenience and flexibility.
Global Off Price Retail Market – Drivers
Growing demand for branded products to drive market growth
Nowadays, people prefer to buy branded and/or designer items from well-known brands. The main reasons behind this phenomenon are the credibility of well-known brands and the desire of people to show their status. Modern consumers are looking for ways to get the best value for their money. The appeal of buying high-quality products at discounted prices attracts a wide range of customers. In April 2023, Nordstrom, Inc. announced plans to open a new 25,000-square-foot off-price retail store in Elk Grove, California (US), which focuses on delivering customers a more convenient and interconnected experience across its stores and digital platforms.
Off Price Retail Market Report Coverage
| Report Coverage | Details | |||
| Base Year: | 2022 | Market Size in 2023: | US$ 315.78 Bn | |
| Historical Data for: | 2018 to 2021 | Forecast Period: | 2023 - 2030 | |
| Forecast Period 2023 to 2030 CAGR: | 8.5% | 2030 Value Projection: | US$ 558.97 Bn | |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: | TJX Companies Inc., Ross Stores Inc., Burlington Stores Inc., Nordstrom Rack (Nordstrom Inc.), Marshalls (TJX Companies Inc.), DSW (Designer Brands Inc.), Macy's Backstage (Macy's Inc.), Century 21 Department Store, Saks OFF 5TH (Hudson's Bay Company), Stein Mart Inc., Sierra Trading Post (The TJX Companies Inc.), Off Broadway Shoe Warehouse, Gordmans (Stage Stores Inc.), Bealls Outlet (Bealls Inc.), Gabriel Brothers Inc. | |||
| Growth Drivers: |
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| Restraints & Challenges: |
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Increasing consumer awareness to augment the market growth
Consumers are aware that off-price retail stores offer well-known brands and designer products at lower prices compared to traditional retail stores. Consumers are aware that they can find products or items from recognized brands at a lower cost. Consumers who wish to buy products/items from well-known brands may find the off-price retail an attractive way to access these brands at lower prices. Moreover, consumers are aware that off-price retailers often carry limited quantities of each product or item. This scarcity can drive a sense of urgency and excitement among consumers. This in turn is expected to propel the growth of the market.
Global Off Price Retail Market – Restrain
Supply chain challenges to hamper the market growth
One of the key factors expected to hamper growth of the global off price retail market is the supply chain challenges and excessive inventory. For instance, off-price retailers heavily rely on acquiring excess inventory, overstock, or discontinued products or items. Any disruption in the supply chain, such as production delays, distribution issues, and decreased availability of excess inventory, can impact their ability to offer a consistent variety of products to customers. Moreover, the availability of discounted merchandise can be unpredictable, leading to fluctuations in the types of products that off-price retailers can offer. This inconsistency might make it harder to build a loyal customer base that knows what to expect when shopping at these stores.
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Global Off Price Retail Market – Opportunities
Increasing number of off price retail stores is expected to provide significant growth opportunities for players in the global off price retail market. With the increasing awareness among people about off price retail, the number of off price retail stores is also increasing with the rapid pace. In May 2023, Macy’s announced the expansion of its off-price division, Macy’s Backstage, with ten new locations. The expansion will grow Macy’s Backstage to 319 locations, 310 of them inside Macy’s department stores, and 9 freestanding stores. All new locations are scheduled to open within two months. The move comes as the off-price segment is showing added strength as consumers become more cost-conscious due to inflation or economic uncertainty.
Global Off Price Retail Market - Key Developments
In September 2022, Gap, Inc.’s Athleta brand teamed up with ThredUP and Shop Premium Outlets to pilot a new resale program and expand further into off-price sector. Both initiatives are designed to help Athleta reach new customers and boost loyalty as it continues to expand its growing stake in the activewear and intimates segments.
Key Market Takeaways:
Global off price retail market is expected to exhibit a CAGR of 8.5% over the forecast period. The global off price retail market is growing rapidly in response to the changing fashion trends, changing consumer behavior, and rapid growth of e-commerce.
On the basis of Product Category: Apparel and Footwear Segment is expected to dominate the market during the forecast period and this is attributed to the increasing demand for or sales of apparel and footwear across the globe.
On the basis of Distribution Channel: Online Retail Segment is expected to dominate the market during the forecast period and this is attributed to the rapid growth of e-commerce or increasing number of e-commerce platforms.
On the basis of End User: Consumer Segment is expected to dominate the market during the forecast period and this is attributed to the increasing consumer awareness.
On the basis of Price Range: Low-End Segment is expected to dominate the market during the forecast period and this is attributed to the increasing demand for branded products.
On the basis of Demographics: Women Segment is expected to dominate the market during the forecast period and this is attributed to the growing trend of online shopping.
On the basis of Geography, North America is expected to hold a dominant position over the forecast period due to growing demand for branded products, increasing consumer awareness, and increasing number of off price retail stores in the region.
Competitive Landscape:
Key players operating in the global off price retail market include TJX Companies Inc., Ross Stores Inc., Burlington Stores Inc., Nordstrom Rack (Nordstrom Inc.), Marshalls (TJX Companies Inc.), DSW (Designer Brands Inc.), Macy's Backstage (Macy's Inc.), Century 21 Department Store, Saks OFF 5TH (Hudson's Bay Company), Stein Mart Inc., Sierra Trading Post (The TJX Companies Inc.), Off Broadway Shoe Warehouse, Gordmans (Stage Stores Inc.), Bealls Outlet (Bealls Inc.), Gabriel Brothers Inc., among others.
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Detailed Segmentation:
- Global Off Price Retail Market, By Product Category
- Apparel and Footwear
- Home Goods
- Electronics
- Beauty and Cosmetics
- Global Off Price Retail Market, By Distribution Channel
- Brick-and-Mortar Stores
- Online Retail
- Global Off Price Retail Market, By Price Range
- Low-end
- Mid-range
- High-end
- Global Off Price Retail Market, By Demographics
- Men
- Women
- Children
- Global Off Price Retail Market, By End User
- Consumer
- Business-to-Business (B2B)
- Global Off Price Retail Market, By Region
- North America
- By Country:
- U.S.
- Canada
- By Country:
- Latin America
- By Country:
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- By Country:
- Europe
- By Country:
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- By Country:
- Asia Pacific
- By Country
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
- By Country
- Middle East
- By Country:
- GCC Countries
- Israel
- Rest of Middle East
- By Country:
- Africa
- By Country/Region:
- South Africa
- Central Africa
- North Africa
- By Country/Region:
- North America
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