Unlike secondhand stores, off-price retailers sell unused merchandise acquired from manufacturers and brands that are holding surplus inventory or out-of-season products. The business resembles outlet retailing because both formats sell new products at reduced prices, but their merchandise and operating models differ. Off-price stores, by contrast, carry products from multiple brands in a format similar to a select shop. However, the steep discounts available at off-price stores also highlight the large volume of clothing that remains unsold and risks being discarded. Another Japanese off-price chain, Locust, is operated through a joint investment involving Pal Group Holdings, the company behind the 3COINS retail chain, and a major trading company.