Why Discount Retail Stores are Winning
Retail Stores

It’s no secret that retailers such as Ross Stores, Burlington, Tuesday Morning, and The TJX Companies, Inc. are all prospering in today’s economy. TJX reported a 16 percent increase in sales at the end of the fourth quarter 2018, which ended Feb. 2, 2018. So what do these retailers have in common that is driving up their sales? It’s not secret sauce, but rather a combination of winning methods that keep the dollars rolling and the customers coming back for more.

Discount retailers are known to place small batch orders and distribute them among their nationwide stores. This way, they are not stuck with a surplus of inventory and reap the benefits of department and specialty stores overstocked merchandise through a simple strategy that keeps both the discount stores and the department stores happy. These discount retailers have mastered the method of buying name brand merchandise at a reduced price from these department and specialty stores that need to offload items to make room for their new lines coming through the door. Obviously by getting name brand items at a fraction of the MSRP price, they are able to keep their pricing competitive, which also keeps their customers happy.

By ordering small batch orders, they are continuously rotating merchandise through their stores and motivating their treasure-hunting customers to keep coming back for more. They have mastered the buying process to get items on their shelves quickly, and no two stores have exactly the same things. Customers find the experience rewarding to be able to walk through the store and find items they didn’t even know they needed. This rich user experience is not easily replicated online.

In today’s market, customers want a good price, a good product and a good outcome. While it may seem difficult to please on all levels, these discount retailers have not only been successful, they’ve thrived well beyond any competition to provide all three needs in every visit customers make to their stores.

Kara Demmien is a project designer with LDG’s national Retail Design Division and co-leads the firm’s Williamsport, PA office. The group serves clients with stores nationwide. Contact her at kdemmien@larsondesigngroup.com.

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