As anyone that has shopped at TJ Maxx can say, it’s a different kind of shopping experience. It certainly doesn’t offer the glitz and glamour as some well-known department stores and clothing retailers do, but there is something appealing about hunting through various products and stumbling across a couple of great bargains.
And Americans appear to be agreeing with that sentiment, as TJ Maxx is enjoying yet another profitable quarter – for their 30th consecutive quarter no less as TJ Maxx sales grow for continuous progression.
After reporting a 4% rise, TJ Maxx is thriving in a retail climate where some of the biggest names in the business are continuing to struggle. Department stores such as Macy’s, Sears, and Nordstrom are continually suffering from falling sales, along with a host of other retailers, so what are TJ Maxx getting right?
Well for one, they offer great bargains. Retailers have long been programmed to appreciate a good bargain (especially given the economic struggles of past years), with sales and discounts luring in a large component of buyers, and TJ Maxx is offering all of this year-round.
Comparison to Other Retailers
Other businesses have been using a selection of reasons for repeatedly falling sales, from warmer winters to a drop in tourists, but one thing remains clear – while everyone else seems to be struggling, the discount retailer is thriving.
Macys and Nordstrom have made attempts to close the gap.
Macy’s in-store sections that offer off-price products has resulted mostly in chaos and utter mess, which certainly removes the prestige and prominence that the brand once carried.
Their Backstage outlet stores offer cut prices on much of their products, and could be the remedy they need to boost faltering sales, but whether it can be enough to save them in the long-term is anyone’s guess.
Similarly, Nordstrom offers Rack, a discount store offering rates similar to those found in TJ Maxx and others, and it looks to be a promising direction to take. Their sales are said to be one the rise, which isn’t the case with Nordstrom, and now their discount stores could be outnumbering them.
The main issue with this is that is that the brands are almost becoming divided, with one representing an entire different retail experience than the other – this isn’t going to get people back through the doors of Nordstrom stores. The same can be said of Macy’s and their Backstage stores.
TJ Maxx as no such problem, as retailers are well-aware of their brand identity, and seem to appreciate the fact that you know what to expect in terms of a discount retailer offering bargains aplenty and this is one key reason that TJ Maxx sales grow and the company continues to prosper
The fact that more and more impressive brands are finding their way into TJ Maxx stores has only served to help drive consumers through the doors. The prospect of finding a hidden gem remains alluring, and consumers love how they can find lots of big-name and authentic brands, most of which are available at department stores but for much higher prices.
One thing is clear, of the many retailers that are making bold new strategies to help solve their woeful sales, TJ Maxx is not one of them, continuing to thrive where many others are failing.