Why Off-Price Retailers Are Thriving Today
At a time when traditional department and specialty stores are floundering, off-price retailers have emerged—and their business is booming. In new research released by The NPD Group, a global industry analysis and advisory services company, roughly two-thirds of consumers who shop for clothes do so at off-price retailers.
Their purchases at these off-price outlets represent 75% of all apparel purchases – across all retail channels. An off-price retailer can be defined as a retailer who provides high quality goods at significant discounts, every day. Two of the largest American off-price retailers, TJX (owner of T.J. Maxx and Marshalls) and Ross, each reported second quarter 2016 sales increases of 7%, whereas their traditional “full-price” counterpart Macy’s Inc. reported decreased sales of 4% for the same period. Ross is slated to open a total of 90 new stores in 2016, while Macy’s recently announced plans to close 100 full-line Macy’s locations.
To understand why off-price retailers are thriving, read the full thought leadership piece by downloading the document below.
- This article was written by Altina Pocesta, a Senior in our New York practice and published in the October 2016 edition of the Ledger.
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