The reason TJ Maxx is able to offer discounted merchandise
- These are the things that the stores don't want you to know. - We are going to determine if these four stores and the tips that we have been told by Tik Tok are actually a hack or just whack. - 2021 What a time to be alive. - I feel like I'm part of this game. - Clearly. It's whack. Hey guys. Welcome to clevver style - and Welcome to anyone who is very addicted to Tik Tok ,Just like we are - recently we have come across some shopping tips or hacks, if you will, determined to make shopping even easier. And these are the things that the stores don't want you to know. - They don't want you to know - you don't even know - and shopping plus Tik Tok equals obv something we had to investigate here at Clevver. - So basically we're putting on our fashion, detective hats, as we do. And we are going to determine if these four stores and the tips that we have been told by Tik Tok are actually a hack or just whack - The four stores we are shopping at today are Target, TJ Maxx, Walmart and Zara. - and As we're going through these stores and trying out all these hacks, let us know, one if you've tried the hack. And two, if you have a better hack, just drop it down in the comments because we need to know - life hackin baby. (Emphatic music) - Mondays items for babies, children, and electronics, Tuesdays women's clothing and home items. Wednesday's food, health and beauty. Men's clothes, toys, and gardening. Thursday is sporting goods and luggage, Fridays, cosmetics, jewelry, hardware auto, and home improvement. - Certain days have certain sales we're here on a Wednesday. So according to this Tik Tok, food, health and beauty men's clothes, toys, and gardening should all be on sale. We obviously went straight to food. There was the widest variety of things on sale. The coffee was really, really well-priced. If you bought two, they were like 6.50. Remember we got so many drinks. - I got a three-pack of LaCroix for 10 bucks. I know Shanita hates LaCroix like to the fiery pits of hell - Barfed, Barfed all over it. - You know what get outta here good and gather. - On sale, 2.99, same exact price as this trash. - Yeah but does it say three for 10, like that's way more exciting verbage. - Okay, because it's three for nine, saved a dollar - Because they're lame. - It seems like every single type of beverage was on sale. - Yeah Beverages Slapped, food was medium. - One of the Biggest sales I saw was almond butter because Justin, what the F is in your almost butter its expensive, as hell today, It's on sale for 6.79. That's a $1.50 off. It's almost worth it. I will get this. - We went to the refrigerated section and I noticed a bunch of yogurt was on sale. Not the one I usually get. So I was a little bummed out, but I know you lucked out. You got some goodies - I got milk cookies they were Two for five Bucks. - Next we've ventured over into the health and beauty section. We steered away from makeup. Cause we did see makeup was on a different day. So beauty to us meant more like wellness, hair stuff. - Hair stuff we thought maybe. - I noticed a couple of boxes of tampons on sale. They were not necessarily a sale. They were like buy two, get a gift card back. - A hundred percent organic unscented, chlorine, pesticides, and fragrance free, plant based, plant based tampon 2021 what a time to be alive the incentive I think for health and beauty for them, isn't as strong. You know, you have like a year and a half before something can not be used anymore. So I feel like that's why there was a lot more gift card sales. To me, it didn't look like it was on sale. It looked like you were going to get a gift card back for spending money. Here's a target gift card, which is a great incentive. But that to me is not a sale. - Do you guys stink? Not to worry. The native deodorant is on sale. It looks like you saved 99 cents Each. When you buy two, you save a dollar. If native is like a brand you love come on a Wednesday. We went through the men's section. Nothing was on sale, - not a single thing, - not really a let down. Cause like what do we care? So we kept it moving, went straight to the toys section. - We came up in the toy section. - We did - We got some Nerf guns and yes, we will be attacking all of our coworkers with them. - This "nerfnite" Fortnite gun was 36.99 is now 18.49. Look how much fun they're having that could be us. You had to like chase me away from this Barbie section. It was like cheerleader, like, barbie, brats heads. - Yeah the were so creepy. - But they were on sale, I was like, - Yeah And they looked into your soul. Like this. (creepy child laughter) - Legos we're like also on sale. - Dude the Lego sets were so good. The big Lego sets. So like the architecture sets where you can build like the empire state building or the millennium Falcon. And they were like 20 to $40 off. And those are the ones that everyone gets for gifts. So we're coming up on the holidays. Maybe go check it out next time and see if Wednesday is a great day for you to go and get some of those really big Christmas type Toys. - Such good advice. - Thank you. - Thank you. - By the time summer's over in school has started all of target and really every store is like, oh my God, we need to start preparing for all the holidays that are months and months away. So they get rid of all the gardening stuff. So when we went there, it was shoved in a corner, which is really rude, -brass tacks - There was like one bag bag of soil there like six planters. I bought like four of them. There were things on sale, but they didn't even care to put the red tag. This was $30.50 and it's not on sale for 26.99, but it's not red. I have to do some investigations. So overall I'm going to say for the most part, this was Whack because to me, I feel like target has sales all the time. The only thing that really impressed me was the food. And maybe some of the toys stuff. - I thought it was a whack. I like was bored. I was like, this just I'm a target. Like the sales weren't anything worth it to me to even like really dive through, It was just a wacky. - WHACK! - We're going to find your product on the bottom. Normally where the, where the barcodes are, there's going to be something called a batch number, which is this long number right here. So what you do is you're going to go into the cosmetic calculator, select the brand, which mine's olay then you hit done Then you're going to enter in the batch code. Okay? Calculate. This says it was made in 2011. This product is almost 10 years old and they're trying to sell it to you. Don't get scammed. - All right, you are gunna go to this website checkcosmetics.net. And then you enter in the batch number found by the barcode. And it will tell you whether or not it is expired. So we went to TJ. maxx, we really went hard at the cosmetic section obviously. And it was pretty surprising. We saw a ton of brands that we already knew and loved like really expensive brands you find at Sephora and Ulta, This is Bobby Brown bronzing powder, I'm actually-, Bobby Brown is a great brand. I always forget about them. - I have This Mac travel exclusive, mini lipsticks that's like legit they'll tackle you if you try to steal it - we grabbed a bunch. And then we got outside up first, we have the cover FX, powerplay concealer. We bought this for $6 - steal - and we realized very quickly that not every single brand we bought was on the dropdown menu - Cover fx is not one of the brands on here. We probably should check that before we shop for the products but you know learning - Its okay you watch us to learn our lesson - What a teachable moment. - We actually had a few items that were on it. At first we had Mac cosmetics. This was a travel size lipstick pack for five lipsticks. There are a lot of codes on these packages. So when you drop down the Mac like little option, the code is actually for these going to be just a three digit little code at the bottom of each lipstick. - There's also a three digit code on the bottom of this box, as well as at the end, it was manufactured November of 2019. It's general shelf life is 36 months. So three years from that time, meaning that this product is now valid for at least the next 14 months. - Up next Is a product that I just like really resonate with st tropez self-tanner. I've never used this one Gradual tan. - Oh I have. It's actually great. I love it. - I'm very curious because this is something you rub all over your body and I'm curious, I didn't realize stuff like this expires. - The date of manufacturer for this is the 13th of December, 2020. - That's really new. - It has shelf life of 12 months, which means that you have until December of 2021 to get the best results. - the best tan of your life. I don't even know if I really would've like needed any of these things or are they just so cheap that I'm like great, I need to by these - Yes But that's the point, a cosmetics calculator, can tell you, should you get this, or is this expired? So I think that is in and of itself, like a super hack, especially if you're about to drop a bunch of money and think you've got a really good deal only to discover that all that makeup is about to expire in like four days. You know what I'm saying? - Yeah. I thought it was a hack in the sense of the website works. It really did tell you how long it's been on the shelf, how long it's been out. I felt like a lot of the packaging was kind of brittle and torn apart. And when I'm putting something like that on my face, that just feels a little bit on the ickier side for me. So I would have to be diligently in there on that frickin website. - Yeah well, I Think it's definitely going to change the way I shop at TJ. Maxx now - I've been Hacked. - When you go to Walmart and the door's open look up, there's a four digit code. Remember that, now go inside and do your shopping. But self checkout. Now on that screen at the top right corner, there's an option for discount code, click that and enter the code. - Check for a four digit code when entering the store and use that code at self checkout Only there should be a place on the top right corner that says discount code and be sure there are no sale items, but it should give you money off. (Bubbly music) - I don't understand what I'm supposed to be looking for. We've literally been like standing, looking at the ceiling, but the ceiling is just like really industrial. There are no numbers. I feel like I'm part of this game. - People are saying it doesn't work, doesn't work. There is no code. Oh. And then somebody said only managers, supervisors, general managers. (manager)- Ladies, you're not supposed to record in the store, you need to..(unintelligible) - Okay. Thank you. - We got kicked out. We felt really badass about it. No, just kidding. But for real, the supervisor who kicked us out did help us figure this hack out. He basically said, you should have just asked me. And I would've told you that that is a hoax. And we were like, Ooh, but we weren't the only ones that fell for it All right. So obviously now that we know that this is totally fake, one rude and two clearly it's whack. - Whack - If you love shopping at zara then this is the PSA You didn't know you needed - circle means it runs big, triangle means it runs small. Square means true to size - We love Zara, but we have no idea about this hack. And I had always noticed these symbols - we do! and I never thought anything of it. Three different symbols on Zara tags, will show you how the items are supposed to fit. So circle means it runs big triangle means it runs small square means true to size. Anyway, we decided to each try on the same pair of jeans in our size, just to see if that was like a true feeling for each of us, - all of the jeans We tried on fit horribly. They were horrible fitting. - And they were like low rise and cropped. Like what is that combo? But I did find a pair of jeans when I was leaving the store and they had the triangle emoji. And actually I tried them on, in a size down and they fit perfectly. - Out of all of them, the square or the one that is supposed to fit true to size was the most well-fitting pair of jeans. But I don't think that, that was because there was a square. I think it was a coincidence. I think we all know if you're a Zara shopper, their jeans are hard. They fit differently. It's not consistent, but when you find that really good pair of Zara jeans, you're going to fall in love with them. So I would say the best hack you can do at Zara is find the jeans you like and take two sizes into the dressing room. - Yes. But yeah, I still kind of thought it was a hack. I just think we were dealt a bad hand with the jeans we randomly selected, but I'm actually going to take this new knowledge into like my whole future at Zara. Like I will pay attention. - I think This is kind of whack. We tried on three pairs of jeans and not one of them kind of you know, so what are the chances that moving forward the symbols are magically going to start working. - And if you guys have been to Zara and tried any of the other items of clothing, like jackets shirts, please let us know in the comments below if it is a tried and true hack, because I need to know, I need to like go back with like some real confidence. - I need answers. Like, yesterday - I have so much fun shopping actually. Like we had a really fun day. Obviously we like each other, so that's fun. (laughter) But just going out and trying like these tips and hacks and see, I like secret things the same way I feel about secret menus you know, I'm like, oh my God, like - treasure hunt. - It just feels like fun and exciting. So if there are any other hacks, tips, tricks, shopping, things that you feel like, oh, maybe you have figured something out that isn't even a known hack. Let us know in the comments because we volunteer as tribute to do this. - Yes
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The reason TJ Maxx is able to offer discounted merchandise
It's a great time to be a closeout store like TJ Maxx.Traditional brands and retailers are overstocked on clothing, home goods, electronics and other merchandise. In July, they were sitting on $713 billion in inventory, according to the latest data from the Census Bureau.That's a prime opportunity for "off-price" retailers such as TJX -- the parent of TJ Maxx, Marshalls and HomeGoods -- as well as Ross, Burlington and Ollie's Bargain Outlet.These chains have flexible buying models and are able to scoop up unwanted merchandise from suppliers at steep discounts to their initial wholesale price.Unlike brands and stores that lock in their inventory six months to a year in advance, TJX and other off-price chains buy surplus merchandise to sell it right away. They also capitalize on orders that have been canceled or when companies manufacture too many items.And if a designer changes the style or color of a dress, for example, off-price stores are happy to take it and sell it on the cheap.If the price is right, these companies will also buy some merchandise and store it away for future seasons -- a practice known as packaway.By buying goods cheap and controlling costs with limited advertising budgets, off-price stores can sell designer names and mid-range brands anywhere from 20% to 60% below regular retailers' prices.Companies and analysts say the current inventory pileup across retail is the ideal environment for off-price chains.The inventories of Nike, Gap, Kohl's, Target and other companies have ballooned from a year ago. "We effectively have a few seasons landing in the marketplace at the same time," Nike CEO John Donahoe said on a call with analysts last month.Factory closures last year and in 2020 delayed shipments, as did widespread container ship shortages and supply chain backlogs. Inflation also has pinched shoppers' pockets, leading them to pass on discretionary items.Companies now are aggressively marking down their excess goods to stimulate customer demand. They're also packing away some goods to try to sell them in future seasons, diverting more merchandise to their own outlet stores and canceling orders from suppliers.But those strategies won't be enough to clear out the glut. And the beneficiaries of this deluge will be off-price chains."This will all waterflow over into them," said Brett Rose, the CEO of wholesale distributor United National Consumer Suppliers, which works with stores and brands. Rose's company is shipping 40% more volume to off-price chains from the same time a year ago."We are seeing extraordinary off-price buying opportunities in the marketplace," TJX CEO Ernie Herrman said in August.Ollie's Bargain Outlet, a closeout chain with more than 400 stores offering housewares, flooring and outdoor goods, is finding "opportunities like we have not seen for a long time," CEO John Swygert said last month."Canceled orders, excess inventory and supply chain disruptions have led to a broad assortment of products being available," he said.
It's a great time to be a closeout store like TJ Maxx.
Traditional brands and retailers are overstocked on clothing, home goods, electronics and other merchandise. In July, they were sitting on $713 billion in inventory, according to the latest data from the Census Bureau.
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That's a prime opportunity for "off-price" retailers such as TJX -- the parent of TJ Maxx, Marshalls and HomeGoods -- as well as Ross, Burlington and Ollie's Bargain Outlet.
These chains have flexible buying models and are able to scoop up unwanted merchandise from suppliers at steep discounts to their initial wholesale price.
Unlike brands and stores that lock in their inventory six months to a year in advance, TJX and other off-price chains buy surplus merchandise to sell it right away. They also capitalize on orders that have been canceled or when companies manufacture too many items.
Under Armour, Ralph Lauren and Steve Madden are walking away from TJ Maxx. Here's why
And if a designer changes the style or color of a dress, for example, off-price stores are happy to take it and sell it on the cheap.
If the price is right, these companies will also buy some merchandise and store it away for future seasons -- a practice known as packaway.
By buying goods cheap and controlling costs with limited advertising budgets, off-price stores can sell designer names and mid-range brands anywhere from 20% to 60% below regular retailers' prices.
Companies and analysts say the current inventory pileup across retail is the ideal environment for off-price chains.
The inventories of Nike, Gap, Kohl's, Target and other companies have ballooned from a year ago. "We effectively have a few seasons landing in the marketplace at the same time," Nike CEO John Donahoe said on a call with analysts last month.
Factory closures last year and in 2020 delayed shipments, as did widespread container ship shortages and supply chain backlogs. Inflation also has pinched shoppers' pockets, leading them to pass on discretionary items.
TJ Maxx, Marshall's parent company fined $13 million for selling products after being recalled
Companies now are aggressively marking down their excess goods to stimulate customer demand. They're also packing away some goods to try to sell them in future seasons, diverting more merchandise to their own outlet stores and canceling orders from suppliers.
But those strategies won't be enough to clear out the glut. And the beneficiaries of this deluge will be off-price chains.
"This will all waterflow over into them," said Brett Rose, the CEO of wholesale distributor United National Consumer Suppliers, which works with stores and brands. Rose's company is shipping 40% more volume to off-price chains from the same time a year ago.
"We are seeing extraordinary off-price buying opportunities in the marketplace," TJX CEO Ernie Herrman said in August.
Ollie's Bargain Outlet, a closeout chain with more than 400 stores offering housewares, flooring and outdoor goods, is finding "opportunities like we have not seen for a long time," CEO John Swygert said last month.
"Canceled orders, excess inventory and supply chain disruptions have led to a broad assortment of products being available," he said.
As someone deeply immersed in the world of retail and shopping trends, it's evident that the article by Nathaniel Meyersohn, published on CNN Business, delves into the dynamics of closeout stores, particularly focusing on TJ Maxx, and the reasons behind their ability to offer discounted merchandise. The article provides a comprehensive overview of the off-price retail sector and sheds light on how these stores navigate the retail landscape to provide consumers with significant discounts.
The key concepts explored in the article include:
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Overstocked Inventory in Traditional Retailers:
- The article highlights that traditional brands and retailers are grappling with an excess of inventory, amounting to $713 billion in July, based on Census Bureau data.
- This surplus inventory becomes an opportunity for off-price retailers like TJ Maxx, Marshalls, HomeGoods, Ross, Burlington, and Ollie's Bargain Outlet.
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Flexible Buying Models of Off-Price Retailers:
- Off-price retailers have flexible buying models, allowing them to acquire surplus merchandise at steep discounts.
- Unlike traditional retailers that plan inventory well in advance, off-price chains can purchase and sell surplus merchandise immediately.
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Opportunities Arising from Canceled Orders and Style Changes:
- Off-price retailers capitalize on canceled orders and changes in style or color by traditional retailers and designers.
- This flexibility enables them to offer a diverse range of products at discounted prices.
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Packaway Strategy:
- The article mentions the practice of packaway, where off-price retailers buy goods cheaply and store them for future seasons, contributing to their ability to provide ongoing discounts.
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Marked Down Excess Goods in Traditional Retail:
- Traditional retailers are marking down excess goods to stimulate customer demand, leading to an overflow of products that off-price chains can capitalize on.
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Supply Chain Disruptions and Inflation Impact:
- Factory closures, supply chain disruptions, and inflation have contributed to the overstock situation, impacting consumer spending on discretionary items.
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Off-Price Chains as Beneficiaries:
- Off-price chains are positioned as beneficiaries of the current retail environment, with increased opportunities for buying surplus merchandise.
This analysis underscores the strategic advantages and market conditions that enable off-price retailers like TJ Maxx to offer discounted merchandise, providing consumers with a range of products at lower prices. The article serves as a valuable insight into the dynamics of the retail industry and the factors influencing the off-price sector's success.
