Visser, Jacobus2026-05-222026-05-221991https://hdl.handle.net/10566/22827Since the beginning of the nineteen-eighties factory shops in the clothing industry in the Cape Peninsula have had an increasing influence on the retail trade. Originally factory shops were mainly used by factories to sell damaged goods at the end of the season. On account of the (particularly) short product life cycle of their merchandise, clothing factories started to use factory shops more and more to sell quality clothes (e.g. overproduction, canceled orders, etc.) of a current season directly to the consumer. This approach brought about conflicts in the distribution channel as the traditional responsibilities and values of each channel member were rearranged. The clothing industry in South Africa in general, and in the Cape Peninsula, in particular, is controlled by 6 retailers. The forward integration by clothing factories (i.e. through establishing their factory outlets), inter alia, challenging the status quo as the leadership of the distribution channel had been questioned. Based on certain theories on distribution channel development and distribution channel entry, this study concentrated on determining the scope of factory shops, as well as on "establishing reasons for their development. Although environmental variables (e.g. inflation, backward vertical integration by retailers, economic conditions, etc.) have had a significant impact on the establishment of factory shops, clothing factories also realized the existence of excellent opportunities for profit maximization under adverse economic conditions. Primarily, it was the small who rose against factory threatened; in addition, independent clothing retailers shops as their existence was the leading position of large retailers came under threat. Several theories on the evolution of distribution channels make provision for the entry of factory shops.enClothing industryFactory shopsSupermarketsDamaged goodsDistribution channelsThesis