Quote:
Originally Posted by CitCat
No. TJ Maxx carries Polo, Juicy, Donna Karan, Lulu Guinness, Lacoste, Lilly Pulitzer, you name it. They no longer buy "seconds" or defective merchandise, only overstocks.
For instance, let's say a department store orders thousands of Polo shirts from Ralph Lauren and the manufacturing of those shirts is running behind and the delivery of said shirts isn't on schedule, that department store can refuse delivery of those shirts if the "complete by" date isn't met...so what should the Ralph Lauren company do? Sit on those shirts hoping some other store will take delivery on them at the original wholesale price? That's where TJX company comes into play..they come and buy the shirts at a discount, because now the shirts are considered "past season"...for a huge discount and pass the savings on to the customers. I think a lot of people don't understand that part of the business, and the same goes for Coach...also overstock comes into play. Companies estimate the consumer needs/wants and if they miss the mark on a certain style of bag and don't sell the projected amount of bags made, what else are they going to do with the product? They financially can't hold onto it, so....
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This is definitely true!! They also do get some current stock that fits within the right season.
I think over time people have begun to shop more at places like TJ Maxx than full price dept stores. In fact, I was told this is the reason one of the Lord and Taylor dept stores that I used to shop at occasionally was closed... because they simply cannot compete with growing chains like Maxx. They have responded overall as a chain by adding more and more sales... and again, that's pretty much when I buy there!
The thing is, sometimes you can't have your cake and eat it too. You may want to retain or achieve a high image and "exclusivity" at a high price, but you have to adjust and make the sales... The stores have to do what they have to do to stay in business, but ultimately, I think it all falls back to price. I think a lot of Coach prices are out of line. Even at the factory stores, there is a certain price range the items sell well at. I was told this is the key reason they sometimes shift their high priced retail stock that they get in around to other areas that are more likely to sell it. Last time I was at Reading, I was looking for two bags that I know were there previously, and I was told they did not sell, but were shifted for this reason. I never thought about it before, but it makes sense...it's even hard for them to sell some of their expensive retail bags at some of the outlets. They don't destroy their bags like some manufacturers do, so they have no choice but to shift and sell. Personally, I think they would be better off to stop the price elevation, because then perhaps they would not have to do this as often and more people would buy at retail. Also in time of recession, luxury spending is the first thing to go (the definition of luxury of course varies from person to person!). But as I say this, I also realize that things usually balance out...and at the moment they are profitable. Long term..we'll see!
How Do You Feel About Coach at TJMaxx?
Re: How Do You Feel About Coach at TJMaxx?
