TJX Plans to Stay True to Hands-On Shopping Post COVID-19
E-Commerce is growing at an astounding rate and making brick-and-mortar retailers seem more and more like a thing of the past. What does TJX brand's decision to stay true to hands-on shopping mean for their future?
TJX, the parent company of TJ Maxx, Marshall’s, and Home Goods, claims it doesn’t need to rely on e-commerce. In regard to the company’s plans post-coronavirus, CEO Ernie Herrman was quoted in Forbes magazine, saying, “Strategically, nothing will change. We will not look to e-commerce as our major leverage point to get us through Covid and out the other side.”
Both before the COVID-19 pandemic and now, it is clear that TJX does not see e-commerce as a worthwhile path to pursue. Before the pandemic, TJX’s online revenue accounted for just 2% of their total sales. Compared to other retail stores whose online sales averaged closer to 15%, it’s clear that TJX stores present considerable strength in their brick and mortar settings. In fact, TJX’s websites were actually shut down for two weeks at the end of March, while it seemed every other retailer was scrambling to get their online sales up amid physical store closures. Even now, TJ Maxx’s website limits the number of orders placed per day in order to “get back up and running.”
TJX prides itself on being a bargain-hunting style of retail, where loyal customers explain the experience of excitedly searching through items and finding the best deal as central to the TJX brand. When stores reopened earlier this month, TJ Maxx and Marshall’s had lines out of their doors of eager shoppers looking to feel that sweet high of a major discount after months spent in quarantine. This “treasure-hunt experience” is why TJX executives are leaning away from rather than into the growing land of e-commerce.
While some experts say TJX’s decision to mostly steer clear of online sales will come back around to hurt them later, some say the opposite. The company’s sales are skyrocketing after their grand re-opening. It seems there is a built-up demand for lower priced items as many people try for financial caution during a time of economic crisis.
Photo Credits:
https://www.cincinnati.com/story/news/2019/11/27/t-j-maxx-homegoods-marshalls-sold-products-after-recalls-were-announced/4317120002/
https://seekingalpha.com/article/4073764-buy-tjx-companies-discount-price
https://www.heraldcourier.com/news/large-crowd-greets-marshalls-grand-opening-this-morning/article_4e555208-c8b7-11e4-a459-f3d74e9b807c.html
https://www.forbes.com/sites/stevendennis/2019/10/08/late-to-the-e-commerce-party-what-marshalls-at-home-and-others-got-wrong/#49615d812470
Report: Grace Carlos
At the rise of Covid-19 many of us first questioned the timeline of fashion week and would we see the regular calendar continue - the question weighed over many of us for months! It was refreshing to see design houses and designers across the globe take advantage of the uncertainty and plow into production mode - thus my interest in Jerri Reid New York - The Black Designer based in Brooklyn New York wow’d instagram with his latest collection paying homage to the Black Is King film which debuted earlier this year in July. I was taken aback at quick of a turn round the young designer produced and released his well crafted designs reflecting some of the films most memorable moments.