T.J. Maxx is an off-price retailer, which it operates by offering brand name merchandise 20 -60% below department store prices, by purchasing merchandise when other retail stores close, or have overruns, or unexpected changes in demand and pass these savings on to their customers. The 33-billion-dollar plus company has been successful due to low cost structure, strong vendor relationships and flexible business model.
As a consumer of goods, customers return to TJ Maxx due to the cost savings that they are unable to obtain at the department stores. Globalization is the essence of earnings growth at T.J. Maxx due to its success in Europe. Kowitt (2014) noted that retailers in the United States struggle in Europe, but T.J. Maxx excelled by hiring European buyers to buy European products instead of trying to force American
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After searching the company’s website, T.J. Maxx has almost 3,000,000 followers on Facebook. The store offers monthly gift cards for being (hash tag) #Maxxinista by encouraging customers to show their style and other unexpected finds through several social media outlets. This and other initiatives that sponsor involvement have been creating a sense of community. There are other campaigns that involve live one to one interaction with shoppers, which allows a community of “Maxxinistas” to have a “Shopportunity” to provide a community of knowledge that T.J. Maxx will undoubtedly use to make continuous improvements in the shopping experience. Not sure what the future holds, but the company’s positioning for more global expansion and to continue innovating and creating other opportunities to remain viable in the 21st century by delivering value to its customers and enhancing their customer loyalty programs (offer customers special contests and sweepstakes, early access shopping, extended return policies and tips on new