Interesting Facts About Off-Price Retailers (i.e. TJ Maxx, Marshalls, etc.)
TJ Maxx Event
This morning I had the pleasure of going to a TJ Maxx event held for bloggers (thanks to @happysquid), where we went on a “behind-the-scenes” tour and listened to Allison Deyette, a fashion consultant, talk about latest trends for the fall.
(below: the backroom where 10,000 pieces are processed every week)
Ring-a-ding: What I Got
I received a $50 gift card at the event, which I used to buy a pearl and silver filgree ring for $25. This ring caught my eye because I’ve been wanting to get a cocktail ring that’s noticeable but understated. Many other stores carried pretty rings, but they were either too dainty or too bling-y or flashy (or, you know, too expensive). I love pearls, and I like the slightly vintage look of this ring. It’s apparently handmade in Israal by a company called Sea-Noy.
TJ Maxx had such a wonderful jewelry section, I haven’t expected that. I’ll have to go back sometime to use what’s leftover on my gift card.
Interesting Facts About Off-Price Retailers
Most of the bloggers there came from the beauty / fashion space, which was obvious, because they were all very stylishly dressed. As I was representing the personal finance space, I figured I could be forgiven for wearing something a bit less edgy. 
The fashion talks were very interesting – according to Allison, a feminine purple blouse is THE accessory to have for Fall. But what I found more interesting were the little tidbits about sourcing and buying in the off-price world:
- TJ Maxx buyers travel 40 weeks out of the year to speak to vendors all over the world.
- Off-price retailers engage in “opportunistic” buying, i.e. when forecasting mistakes, canceled orders, or overproduction result in more items that a full-priced retailer can buy, an off-price will come in and buy the merchandise at vastly discounted prices.
- Most of the merchandise at off-price retailers are in-season, and are released at the same time as full-priced merchandise at department stores. (i.e., you can find a dress at Nordstroms and the same dress at TJ Maxx in the same week.)
- Off-price retailers have a fast turnaround time of as short as 2-3 weeks from the time a shipment is ordered to the time that the products are delivered, processed, and shown on the floor.
- Department stores have the option of shipping back merchandise they don’t sell, but off-price retailers’ purchases are final.
My Thoughts
I imagine designers are of two minds on off-price retailers. On the one hand, excess inventory can be moved quickly and there is no danger of returns = (less) money in the bank. Cha-ching! On the other hand, having pieces at such discounted prices do hurt the brand image and readjusts consumer expectations (another reason why designers are now resisting the firesale prices of late 2008 and early 2009).
On my imaginary third hand, the brand image issue may be mitigated because upscale department stores offer more than just a dress or a pair of shoes – it offers the experience of walking into a beautiful store, with great lighting, tasteful displays, and more consistent product offerings. When you purchase a dress from Bloomingdales or an upscale boutique, you’re not just buying the dress. You’re buying an experience.
In this economy, however, I think cold, hard price considerations will overweigh most experiential buying preferences. The retail space as a whole has been badly hit by the recession, but off-price retailers such as TJ Maxx, Marshalls, Ross, and Loehmanns will do better than other retailers through this time.
My Thoughts As A Consumer
Great merchandise for 50%+ off? Sounds great to me.
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17 Responses to “Interesting Facts About Off-Price Retailers (i.e. TJ Maxx, Marshalls, etc.)”
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It sounds like a really interesting event. I never have much luck at Off-Price Retailers, because all the good stuff is gone so quickly and the stores by me are always a disaster.
Thanks for this post! I’ve had a lot of luck finding clothes I love at T.J. Maxx and Marshalls but sometimes I go to the department store because I think I might be missing something. Now I feel more validated in going to the discount store.
Two thoughts:
a) Ooh, that sounds like a really cool experience! Thanks for sharing!
b) Crapola. I look jaundiced in purple.
Were you a marketing major? You sound like one. Lol. My marketing professor talked like this post. Good post!
sounds interesting, wonder what the advantage of a designer selling to TJ Maxx or Marshall’s is over Nordstom Rack, Off 5th, etc.
Hi,
This is a great post! I love Loehmanns. I live in Washington, D.C. and we have a Loehmanns in Northwest Washington and it always has nice designer pieces. I have purchased all of my work suits, shirts, and accessories from there. You do have to dig and it doesn’t give you the Saks Fifth Ave fill but I love the price tag.
Plus, that same suit that I am wearing was in Saks Fifth Ave for $300 more. I checked because I was curious. No one at work knows how much I paid for it or where I got it. It is just a nice suit and it is my work horse suit too.
Thanks for the great post!
Best wishes,
Janie
Being a fat girl, I’ve rarely had luck with clothing at off-price stores–or anywhere other than Lane Bryant, really. However, most of my purses have come from Ross, Marshalls, and TJ Maxx. Love it.
Love purple!
I’ll buy things at TJ Maxx et al but lately I’ve been trying to buy direct from independent clothing shops/websites.
Interesting post! I just went to Marshall’s on Wednesday and bought of all things…a purple blouse! Glad to hear I’m in fashion even though I didn’t know it.
I have noticed tags cut out at stores like Ross and TJ MAxx, I wonder if it is to hide the designer and hence not hurt the brand’s image? I’ve found some great stuff at those stores, but shopping there takes so much energy. You have to be prepared to wade through piles and piles of clothes to find the hidden gem. It sounds like a fun experience, but I bet I’d look downright frumpy amongst the fashionista set!
I just had a great discount experience at Marshalls. I’ve been searching for a nice handbag for a while now. I was prepared to plunk down semi-major coinage (for me, that is) on a nice, all-leather bag that will stand up to wear and tear. Most of my handbags come from Target or clearance sales at stores like Nine West. They all tend to fall apart if I used them nonstop for about 2 months and then look all tired and crappy. So I was ready to make an investment. A friend suggested B. Makowsky bags, as they are classic with a trendy edge and very well made. I went to Macy’s but the price tags were scary. I’ve never spent that much on one accessory before! While only half-heartedly looking through some bags at Marshalls I found a glorious B. Makowsky bag for $90 – it retailed for almost $300! BRILLIANT. Plus I completely adore the way it looks. I am still doing a mental jig over my mad discount shopping skillz!
good information. So, now what happens to the products they can’t sell, (Ross, TJM, Marshalls) ? Where does it go to?
Do they keep it until it sells or they also sell it to smaller stores at lower discounted prices? How does that go?
Actually, they donate the leftovers to charity. You won't find many other places doing that!