What characterizes an off-price retailer?

An off-price retailer is defined by its business model of offering a varied and inconsistent assortment of brand-name merchandise at significantly lower prices than traditional retailers. This model allows them to attract cost-conscious consumers who are seeking quality products without paying full retail price. Off-price retailers typically purchase surplus, discontinued, or excess inventory from manufacturers or other retailers at a discount, which they then pass on to consumers in the form of lower prices.

Because these retailers often deal in changing inventory, shoppers may find different brands and product types with each visit. This inconsistent selection is a hallmark of the category, distinguishing off-price retailers from standard retailers that usually maintain a consistent assortment. Therefore, this unique approach to inventory and pricing directly captures the essence of what characterizes an off-price retailer, making the correct choice an accurate reflection of their defining characteristics.