Clothes pass through many hands before they are finally purchased by a customer. A garment maker produces the clothes and sells them to a sales distributor. The distributor then sells the articles to a wholesaler, who in turn sells them to various retail outlets. The customer then buys the clothes from the retailer. Each step of this process results in transaction costs that allow each participant to turn a profit, resulting in much higher prices to consumers. If a wholesaler sells the clothes, some of these intermediaries are eliminated and therefore the cost to the consumer is significantly lower.

Retail chains flipped the concept of wholesale clothing all around. These chains buy in bulk, allowing them to pass their savings on to their customers. In addition, these chains want to turn over stock as quickly as possible. This provides added incentives to buy wholesale. These purchases often receive bonus gifts that accompany the original order.