116 3rd St SE
Cedar Rapids, Iowa 52401
One huge retailer ignores the internet: And its strategy is working
Bloomberg News
Dec. 27, 2016 9:00 am
When Kimberly Dulude steps into a TJ Maxx store near her job at the Massachusetts Institute of Technology, she likes to begin perusing a clearance aisle in the back.
Then she works her way up to shoes. Beauty is next, and so on until she gets to the front.
The 29-year-old does buy items online all the time - just not from TJ Maxx. The store, she said, provides the thrill of the hunt.
'I kid you not, I could spend hours in there,” Dulude said.
There's been much talk this holiday season about the dominance of e-commerce. Cyber Monday set a record for online sales, racking up $3.45 billion, according to Adobe Digital Insights. The National Retail Federation said more people shopped online throughout Black Friday weekend than in physical stores.
But there are some stores bucking the trend. Take TJ Maxx and Marshalls, owned by parent company TJX Cos. They're a rarity in the retail universe - stores that don't care about online sales because their businesses are based on the real-life retail experience.
Inventory shifts regularly, so no visit is the same - the promise of discovering great items on the cheap is what draws shoppers inside.
Companies such as Framingham, Mass.-based TJX and competitors Ross Stores Inc. and Burlington Stores Inc. have a team of buyers that pick up excess items on the wholesale market - anything from cashmere sweaters to copper mugs.
TJX alone works with more than 18,000 vendors, including manufacturers and retailers, to scoop up stylish stuff in bulk and resell it at a steal. With more than 2,500 U.S. stores, the company also is adept at tailoring merchandise being offered to local trends.
A representative for TJX declined to comment on the company's strategy.
It's working. Shares have more than doubled over the past five years and revenue is up more than 30 percent during the same time period. TJX's 10 brands hauled in nearly $31 billion in sales last year.
Bloomberg Shopping carts sit in the parking lot outside a TJ Maxx store in Peoria, Ill.

Daily Newsletters