> Compared to the USA, is a contributing factor because things can't be put on discount sale in the EU?

Nonsense. They can.

> In american many things are always on a discount, and there are so many channels through which this discounted merchandise is funneled. Which has to be a major way retails manage excess stock.

Major fashion brands refuse to do any discount at all to avoid damaging the brand. No second hand, no outlets, no rebranding, nothing at all except burning the excess.

> A lot of people don't realize that european retailers are legally disallowed from selling at a discount.

False. They aren't allowed to *falsely* claim that an item is discounted, which happens all the time in the US.