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Why TJ Maxx and Marshalls sometimes hide the name of their designers from online shoppers

Jul 15, 2020, 01:21 IST
Business Insider
When you click the box, Rachel Zoe appears.TJ Maxx
  • Shoppers may notice that designer names are hidden for certain items on the TJ Maxx and Marshalls websites.
  • While off-price stores like TJ Maxx and Marshalls are a helpful avenue for brands to offload their inventory, some designers don't want it to be known how deeply they are discounting their goods.
  • "If any of the discounted stuff gets picked up in a search engine then it compromises that brand's ability to sell at full price everywhere," Morgan Stanley's Kimberly Greenberger said.
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Shoppers looking online for deals at TJ Maxx and Marshalls have likely noticed something on those websites: not all items have their designer listed.

For certain items, a box prompts shoppers to click to reveal what brand it is from.

Kimberly Greenberger, managing director at Morgan Stanley, told Business Insider's Mary Hanbury in 2018 there's a simple reason for this. Some brands don't want it to be known that they're selling their products at a discount.

"If any of the discounted stuff gets picked up in a search engine then it compromises that brand's ability to sell at full price everywhere," Greenberger said.

The off-price channel is helpful for brands that need to offload inventory. In stores, shoppers encounter a "treasure hunt" kind of experience that has them finding designer deals hidden among the racks. But that equation becomes tricky online, where brand names and prices are searchable.

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"The brands don't want it online," Greenberger said.

The jumpsuit is by Rebecca Minkoff, and the jacket is by Theory.Marshalls

In part because of this dynamic, off-price retail has not traditionally been a strong online business. When TJ Maxx and Marshalls parent TJX Companies shut all of its stores in response to the coronavirus pandemic, it shut down its e-commerce operations, too.

Both sites continue to limit the number of orders that can be placed online each day.

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