Factory stores are also known as outlet stores, discount stores, or clearance stores. Outlet stores are retail stores that offer discounted prices on merchandise, mainly because they sell overstocked or discontinued items. Discount stores offer products at a lower price point compared to regular retail stores as they have fewer overhead costs. Clearance stores focus on selling merchandise close to the end of its lifecycle, which enables them to offer deep discounts to customers. Other synonyms for factory stores include bargain shops, wholesale stores, and surplus stores. These types of stores are popular among shoppers looking for great deals on branded or designer products.