Overview: Off-price retailers are discounted retailers who offer quality products at a reduced price. They provide a vast variety of off-season, overstock fashion from a wide range of brands. These retailers include stores such as TJ Maxx, Marshalls, Burlington Coat Factory and Ross, all of which buy their merchandise from thousands of different vendors in order to get the best price and the best variety of product. For example, Forbes contributing writer posted, “TJX sources its products from over 16,000 vendors in 60 countries, while Ross works with 7,900. This reach gives both companies major bargaining power as well as a diversified portfolio of suppliers that insulates them from hiccups in relationships with individual vendors” (Petro, …show more content…
As mentioned above many Department stores have been taking their cue from the off-price retailing handbook. Big companies such as Macy’s, Nordstrom, Saks, and Kohl’s have been focusing a portion of their business to the off-price market. There is now Macy’s Backstage, Nordstrom Rack, Saks off 5th, and many more joining in. While it will take a long time for these competitors to even come close to reaching the top three off-price retailers, this is only the beginning of Department stores encroaching on the off-price market. Another challenge for off-price retailers is the e-commerce side of the business. Off-price has been very slow to jump on the bandwagon and many online retailers have already made their mark. Amazon, Overstock.com, HauteLook, Gilt, and RueLaLa are just a few of the many who have made online bargain hunting easy. Since brick-and-mortar off-price retailers are only just starting to emerge into e-commerce, they have a long way to go to make a stake in the online shopping …show more content…
(2016, July 26). Macy's, Nordstrom, Others Fight For Identity In An Off-Price Retail World. Retrieved from http://www.forbes.com/sites/retailwire/2016/07/26/macys-nordstrom-others-fight-for-identity-in-an-off-price-retail-world/#587509297995 Bailey, S. | May 31, 2016 9:52 am EDT, S. (2016, May 31). What Drove Burlington Stores' Higher Margins in 1Q16? Retrieved from http://marketrealist.com/2016/05/drove-burlington-stores-higher-margins-1q16/ Moody's: US off-price apparel and home retailers continue their rapid growth. (2015, June 30). Retrieved from https://www.moodys.com/research/Moodys-US-off-price-apparel-and-home-retailers-continue-their--PR_329147?WT.mc_id=AM~RmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z~20150630_PR_329147 Pedro, G. (2015, May 13). TJX/Ross Vs. Nordstrom/Macy's -- Investing In Off-Price Vs. Specialty Retailers. Retrieved from