TJX Companies (NYSE: TJX) is known for their discounted and off-price department stores, most notably, TJ Maxx and Marshalls. This business strategy hopes to shield the company from cyclical downturns as their cheaper clothes and home products are more affordable for the average consumer.
What Differentiates TJX?
Operations are relatively simple to understand. The company prides themselves on discounted goods, up to 60% lower than department/specialty store prices. They do this by purchasing goods (ranging from apparel, home goods, accessories and more) from other vendors. These vendors, whether a well-known brand or boutique store, sell to TJX when they overproduce or overbuy their inventory. TJX will negotiate prices for each product they purchase, enabling them to sell brand name products at such discounted prices.
