Blu Dot, the Minneapolis-based manufacturer of modern furniture, said Thursday that its new outlet store will open July 18.

The store will sell closeouts, samples and scratch-and-dent merchandise at a discount, including sofas, sectionals, chairs and dining room and bedroom sets. It will also feature current, full-priced items.

The retailer is dropping its popular warehouse sales and replacing them with an outlet store.

"As our needs for warehouse space grew, there wasn't enough capacity for warehouse sales anymore," Medora Danz, a company vice president, said.

With limited storage space for warehouse items and a big hassle factor in holding the sale, an outlet was the obvious alternative, she said.

The store will be at the current location of the company offices at 1323 Tyler St. NE. in Minneapolis and open only from 10 a.m. to 4 p.m. Saturdays and 11 a.m. to 3 p.m. Sundays.

The warehouse in Rogers, where the sales were held before, will move to Otsego.

Blu Dot designs all of its furniture in Minnesota, but some of it is manufactured overseas.

The company is known by designers and customers for its clean modern design at prices significantly lower than European styles.

Part of the 10,000-square-foot outlet will be a dedicated showroom to highlight many of the hundreds of products Blu Dot sells. All will be available for sale at full price for instant pickup or shipment.