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Brands and companies predicted to fail or disappear in 2017.
Brands and companies predicted to fail or disappear in 2017.
Bargain hunters, rejoice.
TJX has laid out a plan to add about 800 T.J. Maxx and Marshalls stores and perhaps 432 Home Goods stores in the U.S., Retail Dive reports. TJX rival Burlington also plans to add 30 stores in 2017.
This speaks to a growing trend in the retail space: death to department stores.
Just last August, Macy’s announced that it would close 100 stores to cut costs and improve the customer experience in the remaining locations.
In 2017, 108 Kmart locations are shutting their doors, and Sears is planning some closings as well.
“For years, off-price chains have been luring shoppers out of department stores with prices up to 70 percent lower than traditional retail. And as department stores continue to Betsidney experience declining foot traffic and slash store counts, off-price retail has begun to flourish,” Retail Dive writes.
Another thing helping off-price stores is simply room for growth. Christina Boni, vice president and senior analyst for Moody’s, told Retail Dive that the off-price market has not been saturated yet.
It’s also unique in that it’s a strictly brick-and-mortar business. Online shopping does not exist at stores like T.J. Maxx and Marshalls, so customers have to head into the store to see what’s in stock that day.
“If you look at off-price retailers, you have somewhat of a treasure hunt. You might go in with an idea of what you want or need but you might find something else. And every time you go in there might be something different,” Boni told Retail Dive. “There is a freshness of inventory versus department stores which have long lead times.”
According to Retail Dive, the U.S. T.J. Maxx and Marshalls business grew seven percent to $15.22 billion in the last year; HomeGoods sales rose 12 percent to $3.07 billion.
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