Hello-Hello, happy Wednesday. Here at the Prepatorium we are finally experiencing ‘normal’ August temps, the weather has been more-than-wacky here this summer, perhaps where you are as well?
We begin today with news about several “off-price” or discount retailers. I think many readers will recognize the names: TJ Maxx, Tuesday Morning, Off Fifth, Nordstrom Rack.
First, that TJ Maxx news: in the not-too-distant future you will be able to get ‘the max for the minimum’ online; the company has announced it will be opening an e-commerce site. Visit TJMaxx.com now and this is what you see.
TJ Maxx
As of now the retailer’s online presence remains primarily a store location service. But TJ Maxx made a huge investment last year in a company that already does e-commerce, buying Sierra Trading Post.
Sierra Trading Post
Hopefully things will go better this time around; in 2004 TJ Maxx started selling online, but closed the site after a year. If intrigued by what a TJ Maxx online store could look like, checking TK Maxx could provide some insight. That is the European arm of the company, where online selling has been underway since 2009.
TK Maxx
On the TK Maxx site we see accessories by (left to right) Dolce & Gabbana, Marc Jacobs, and Alexander McQueen, all sold under the “Gold Label Collection” banner.
TK Maxx
One item of note, there are no household or decorating items on the TK Maxx site. Since TJ Maxx also owns Home Goods we’re hopeful that won’t be the case in the US. Will we find things online that we occasionally see at Marshall’s (also owned by the company) and TJ Maxx? I don’t know, it’s possible the Pink Palace could mandate no online sales as part of its agreement with TJ Maxx, to avoid any conflict with its own stores and/or other sites like Rue LaLa.
We move on to Saks Fifth Avenue, now more heavily weighted toward discount shops than regular venues, with 41 Saks Fifth Avenue stores and 67 Off Fifth outlets. Currently Off Fifth doesn’t do any online selling. You can print out coupons to use in-store and find out where stores are, but that’s about it.
Saks Fifth Avenue Off Fifth
Fortunately that will change. Reuters reports that Saks will begin selling some Off 5th merchandise online, hopefully this fall.
Saks Chief Executive Steve Sadove told Reuters that the online selection at Off Fifth would be limited, and focused on better selling items, given the expense of taking quality photos and editorial content.
“Ultimately, what you have to weigh is the cost of putting an item up online against the incremental sales that’ll be generated,” Sadove said. “It’s not free.”
(An aside, Saks was just purchased by the same company that owns Lord and Taylor, Canadian-based Hudson’s Bay.)
Next, Nordstrom’s plans for its off-price Rack stores. Looking at planned store openings for 2013 and 2014 you realize what the retailer sees as a big part of its future.
- Throughout 2013 the company will open 14 new Rack stores, while only opening 1 standard Nordstrom store
- The math is similar for 2014: plans are for 3 regular Nordstrom stores to open while 10 new Racks will be launched.
Nordstrom already sells a minimal amount of its Rack merchandise online, but they plan to expand that offering. Reuters reports the company is spending $1 billion on its internet operations so they can do more online selling.
Barneys launched a discounted online site this spring, Barneys Warehouse. A sampling of recent merchandise includes a John Robshaw pillow, Girls Milly Sweater and Lanvin Bow D’Orsay pump.
Barneys Warehouse
Rounding out the more upscale department stores, Neiman’s Last Call has been offering e-commerce for some time. However, merchandise is limited, nowhere near the selection of what is sold at brick and mortar stores.
That brings us to Tuesday Morning. That discounter is doing exactly the opposite of what TJ Maxx is doing – they have shut down their e-commerce site. Here is what you see when visiting Tuesday Morning online.
Tuesday Morning
More from the Wall Street Journal’s Shelly Banjo:
In a bid to focus on its 850 physical stores, the Dallas-based deep discounter quietly shut down its online shopping site in July. The company said online sales—just 1% of the total—weren’t a top priority…
On its website and Facebook page, Tuesday Morning told shoppers it was getting rid of its Web operations to “return to its roots.” It urged shoppers to “keep an open mind and don’t be too specific for what you’re searching for,” describing closeout shopping as a “treasure hunt.”
Ouch.
One thing to keep in mind when shopping any off-price store, this comes via the Christian Science Monitor:
…about 75% to 80% of Last Call and OFF FIFTH merchandise is made or purchased specifically for the outlet store. An anonymous luxury outlet store buyer told financial planning company Learnvest that many of the items purchased for outlets are of lesser quality than what you would find on the racks of the main stores.
If these items were never a part of the flagship store’s inventory, that tag with the slashed “full price” doesn’t mean much. This faux-sale price tactic has the potential to make shoppers think they are getting a better deal than they actually are…
Until next time, may all of your shopping excursions be filled with fun!