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TJ Maxxis thriving as other retailers struggle.
TJ Maxx's parent company, TJX Companies,reported on November 20that comparable sales were up 9% at TJ Maxx and Marshalls in the most recent fiscal quarter. It was the 17th consecutive quarter that customer traffic was up at the stores.
"The value-seeking mindset is an interesting one as it is often assumed that it is most prevalent during times of economic difficulty. However, our data shows that it is now an underlying constant in terms of what consumers look for when shopping," Neil Saunders, managing director of GlobalData Retail,wrote in a note to investors in August.
TJ Maxx is able to keep its prices low using a number of different strategies.
According to the company, much of it comes down to the way TJ Maxx buys its merchandise. It purchases stock from manufacturers that make too much and department stores that overbuy, and it jumps on deals at the end of the season.
Here's how TJ Maxx sells its designer goods at such low prices:
TJ Maxx is an off-price retailer, meaning it sells brand names and designer products for 20-60% less than department stores and other retailers.
TJ Maxx gets its inventory from a few different sources, including boutique labels, designer brands, and up-and-coming labels.
Business Insider/Jessica Tyler
TJ Maxx also has merchandise manufactured exclusively for its stores, which saves the company money and allows it to pass those savings along to shoppers.
Business Insider/Jessica Tyler
When manufacturers overproduce items, TJ Maxx takes advantage and negotiates to get lower prices for the excess inventory.
Business Insider/Jessica Tyler
It does the same when department stores overbuy.
Business Insider/Mary Hanbury
The diversity in TJ Maxx's buying methods helps the retailer pass savings on to customers. It buys orders that department stores canceled ...
Business Insider/Jessica Tyler
... surplus products from manufacturers ...
Business Insider/Jessica Tyler
... and closeout deals at the end of a season.
Business Insider/Jessica Tyler
Many of the designer products it sells are from past seasons, so they can be bought and sold for less.
Business Insider/Mary Hanbury
TJ Maxx also passes along savings by keeping its store design no-frills.
Business Insider/Jessica Tyler
By spending less on its store design, it can sell its products for less.
TJ Maxx sells products at 20% to 60% cheaper than department stores and retailers. It does so by buying surplus inventory from retailers. Recent store closures and a slowdown in consumer spending have given it access to more inventory.
T.J. Maxx's prices are so low because they buy past-season merchandise and even items from canceled orders at other retailers. T.J. Maxx also carries many of their own private labels, including Mercer & Madison, Bella Lux, and If It Were Me, which helps them further boost their bottom line.
(NewsNation Now) — Bad news for bargain shoppers: Designer brands are expected to be pulled from discount chains like T.J. Maxx, Ross and Burlington due to global supply chain issues. Designers like Levi's, Under Armour, Ralph Lauren, Carter's and Steve Madden have decided to sell their clothing at full price.
We take advantage of a wide variety of opportunities, which can include department store cancellations, a manufacturer making up too much product, or a closeout deal when a vendor wants to clear merchandise at the end of a season, as well as lots of other ways to bring our customers tremendous value.
When you shop matters. Most T.J. Maxx Stores do markdowns on Monday mornings, making this the best time of the week to shop if you're looking for a deal. You'll want to take a look around the store for yellow tags on items, showing they're on clearance.
Maxx buys the same item from different vendors (at different prices), or when they miss some of the items during markdowns. As long as the style numbers on the tags match, T.J. Maxx will adjust the price and let you have it for the lowest price.
Maxx stores typically receive new merchandise shipments three to five days a week, but Wednesday is usually the day they mark everything down. Get there in the morning to ensure you'll have access to the most robust selection. If you've ever shopped at a T.J. Maxx, you know that not all of the price tags look the same.
Introduction: My name is Dr. Pierre Goyette, I am a enchanting, powerful, jolly, rich, graceful, colorful, zany person who loves writing and wants to share my knowledge and understanding with you.
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