Why are outlet stores cheaper?

This is a radio sound clip from NPR - National Public Radio on Outlet stores, especially in this time of economic recession. http://www.npr.org/templates/story/story.php?storyId=97750547 From the radio broadcast, outlet stores originally were"outlets" of factorys, of material that wasnt quite at the standard of what they sold in normal stores. Now, most of the items are of good quality but still value priced, and often times you wont find what you would normally find in a department store. This article gives a good evaluation on outlet stores, including input from CONSUMER REPORTS Magazine. http://www.komonews.com/news/archive/4185896.html If you are looking at this long after the post...I apologize if the links don't work. Hopefully someone will take more time to find a more permanent article.