Why are T.J. Maxx and Marshalls often in close proximity to one another?
TJX acquired Marshalls some time ago, and since the stores had been functioning relatively well as competition, TJX decided to keep Marshalls in place and stock it with mostly different inventory (more on that below). What’s the deal? T.J. Maxx and Marshalls are off-price retailers; meaning, they sell at 20-60% less than suggested retail. They can do this because they: 1) skip the frills (mannequins, fixtures, etc.); and 2) can negotiate better prices with designers because they have a “we buy it, we own it” policy where they take responsibility for all inventory purchased (compared to the risk associated with department stores that return stock if it doesn’t sell). Because of this model, they also don’t bother with coupons or special sales; instead focusing on delivering low prices all the time. What’s new? According to TJX, department stores buy seasonally 6-8 times a year, whereas the TJX team buys weekly. This allows them to be flexible, on trend, and delivering new inventory to st
