Here's how TJ Maxx keeps its prices so low
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's buyers search year-round for products.
TJ Maxx gets its inventory from a few different sources, including boutique labels, designer brands, and up-and-coming labels.
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.
When manufacturers overproduce items, TJ Maxx takes advantage and negotiates to get lower prices for the excess inventory.
It does the same when department stores overbuy.
The diversity in TJ Maxx's buying methods helps the retailer pass savings on to customers. It buys orders that department stores canceled ...
... surplus products from manufacturers ...
... and closeout deals at the end of a season.
Many of the designer products it sells are from past seasons, so they can be bought and sold for less.
TJ Maxx also passes along savings by keeping its store design no-frills.
By spending less on its store design, it can sell its products for less.
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