Comments on: TJX: Pushing New ‘Shopportunities’

By: Ted Mininni

Ted Mininni — Tue, 19 May 2009 15:09:15 +0000

Claire, I appreciate the additional insights. Spoken like a true marketer: positioning and value propositions will never go away. They are very much part of the equation for all brands. How companies work to build their brands in changing and sometimes challenging times is very much part of the conversation, isn’t it? Thank you for weighing in, Claire. I appreciate it.

By: Claire Ratushny

Claire Ratushny — Tue, 19 May 2009 14:41:37 +0000

Ted,
I can share some additional insights into TJX because we have done business with the company in the past. First, unlike most retailers, TJX pays its bills net 30, so manufacturers are eager to ship to them. Second, they can snap up merchandise from canceled orders by major retailers quickly. Third, some designer label merchandise is made specifically for TJ Maxx and Marshall’s due to their volume potential, and the fact they pay their bills in a timely manner. All of these things add up to being positioned as a fashion-forward retailer with a constant flow of fresh, desirable merchandise. If the current advertising works well in bringing new customers into the stores, then the strong assortments and pricing–their value proposition–will either ensure they’ll be back, or fail to win them over. I do think TJX is taking the right approach for their brand and for the times.

By: Ted Mininni

Ted Mininni — Tue, 19 May 2009 14:28:47 +0000

Paul, department store retailers like Macy’s are in a lot of trouble. While competition is intense and fewer dollars are being spent, consumers continue to shun department stores. Service is generally abysmal, unfortunately. Remember that stores like Macy’s built their brands on service and enjoyed great success when they lived up to their brand promise.
With its value proposition now, I believe TJX has a great opportunity to pick up more business and customers than it has ever had. . .a continuous flow of fresh, fashion merchandise, excellent pricing and numerous locations make it very alluring to shoppers.
Thanks for weighing in, Paul. I appreciate it.

By: Paul Barsch

Paul Barsch — Tue, 19 May 2009 14:07:10 +0000

Ted, hmmm, this positioning is probably the right route for off-price retailers but they are facing pretty tough competition from retailers like Macy’s that are offering very aggressive sale prices–sometimes throughout the store. Lots of competition for fewer dollars.

By: Ted Mininni

Ted Mininni — Tue, 19 May 2009 14:04:41 +0000

Good insights, Lewis, and I thank you for sharing them with us. What also occurred to me after writing this post is that retailers have a number of challenges in a tough economy. . .not the least of which is e-tailing. Internet retail sites are constantly making huge inroads vs brick and mortar retailers, further eroding their business. It is going to take a great deal of ingenuity to demonstrate their value, for retailers of every stripe to survive.

By: Lewis Green

Lewis Green — Tue, 19 May 2009 13:52:52 +0000

Ted,
This sounds very much like Target’s marketing strategy some years ago–”to educate them on the concept of off-price and why it’s the better way to shop.” It occurs to me that this strategy is always appropriate for retailers.
Although not off-price, Starbucks, as one example, used this strategy to grow it’s business. Educating consumers to our value, should represent an ongoing Marketing effort, no matter our products, services, and price points.