MILLBURN, N.J. ( Stockpickr) -- Outlet shopping is a big business, benefiting both the consumer and the retailer for a variety of reasons.For example, at outlet stores, consumers seeking to "trade up" to luxury brands can do so without having to pay up. Retailers can also segregate merchandise from their regular-priced stores for clearance and discount without jeopardizing or cannibalizing their regularly priced goods >>3 Cheap Dow Stocks Poised to Rebound in 2012 Outlets tend to be located in or near vacation and resort towns. When on vacation, consumers are not as budget-conscious and are less fiscally disciplined. They also tend to make spur-of-the-moment purchases. Finally, outlets have extensive store variety with something to offer every member of the family and people of all ages and tastes. With the holiday shopping season just around the corner, let's take a look at several stocks that benefit from outlet sales -- as well as two to avoid. Tanger Factory Outlet Centers Recently, I wrote highlighted five REIT stocks. One subsector of real estate investment trusts, retail, is divided further into shopping centers, regional malls and free-standing malls (commonly referred to as strip malls). Typically, outlet shopping centers tend to be free-standing.