Dive Brief:

• More and more retailers are using off-price outlet stores to capture customers that don't like to pay full sticker price, and as a result rents at those malls are going up.

• Competition is also getting hot, and “factory outlets are under pressure” as a result, according to Wells Fargo analyst Paul Lejuez.

• Heavy discounting outside factory outlet malls may be softening demand, too, making it less likely that shoppers will trek out to the discount areas.

Dive Insight:

This is an area to watch closely. Discount pressures, pricing strategies, and competition from the likes of Amazon and fast-fashion companies have become an everyday issue in retail. Outlet malls continue to be a dependable source of revenue for retailers, which now use them to not just off-load extra inventory but to also stock outlet-specific products. But as rents rise and things get crowded, that could change.