15 fashionistas hit the campus buildings of T.J. Maxx and Marshalls in Boston today, along with one not-as-fashionable Mom Blogger (me) for a corporate blogger retreat. OK, I have to start by confessing that I am a card carrying member. Of their Visa that is, and for the past fifteen years: thanks to monthly $20 merchandise coupons. So I guess that makes me a passionista?! So with that biased perspective in mind, I arrived at the sprawling modern red-brick and sleek glass campus of TJX headquarters.
So what does Marshalls and T.J.Maxx most want us Moms to know? Here’s what Karen Coppola, Senior VP of Marketing has to say (to the extent my fast typing could keep up with her energetic pace and passion), “We get talked about in the discount bucket of retailers: which can be negative, because while we get associated with great value, people also tend to think cheap goods when they think discount. But in reality we carry the quality and labels of Macy, Nordstrom and Bloomingdales at discount prices. Granted you have to have fashion confidence to shop at our stores: unlike someone dressing you and picking perfect accessories at a boutique or department store. It’s all about discovery of great brands. Most people do not realize we carry amazing brands, and you can find the labels you love to find. Where you find $24.99 blouse at Target, it was manufactured to sell at this price. Whereas our $24.99 blouse was manufactured to sell around $70. We are even very conservative in our compare prices on our tags on the clothing. We want to be believable.” When I asked her how she would describe her brand in one line, Karen offers up: “Quality goods at the best prices on the planet.”
Shares lawyer and skeptical fashion blogger Stephanie Rahlfs of Stiletto Jungle: “I look for high quality goods when I shop, so I had not shopped your stores as I thought it was lower quality goods. And first thing I saw when I went in to the check out the store in anticipation of this blogger retreat was $200 Theory top for $70. Who knew?!”
So the blogger day unfolds with a focus on shifting the brand perception of Marshalls and TJX.
Next up, a PowerPoint presentation by Laura McDowell, Manager of Media Relations and behind-the-scenes of off-price retailing. Some facts I found cool:
- Their stores get 10,000 new items each week. That why the old TJMaxx logo was “Never the same place twice.” This rapidly changing assortment is a key differentiator for them.
- Their buyers shop the world, with over 10,000 merchants in 60 countries. From Italy to Hong Kong to Morocco to Africa to hand-milled soaps in Provence. All merchandise, food and perfumes come direct from vendor. Some fragrances like Holston, which they no longer sell in the department stores, but they work with the vendor to produce the product. It’s all first time to retail. NOT cast-offs (which I must confess I sort of assumed).
- How do they do it? Opportunistic buying. Flexible stores and flexible pricing; a department store just cancelled an order, or I am doing a 80,000 run for Macy’s and can run an extra 20,000 for you. Buyers craft deals directly from the manufacturers, and have huge buying power with over 1,600 stores.
- Moreover, unlike department stores that reserve the right to return unsold merchandise, TJMaxx and Marshall’s own all their merchandise, and as featured in Business Week they pay on time- apparently a rarity in the fashion industry.
- All of which leads to their treasure hunt experience. Who knows what Italian pottery or designer jeans arrived at the stores today. As a result, business has been up since this summer.
Characteristics of their shoppers: 25 to 54 years old, middle to upper middle income, shops high end department ad specialty stores, loves value positive outlook on life, creative, imaginative, open-minded exploratory, classic and trendy. Ummm…I now begin to understand my TJX passionta roots. Sort of a personality mapping test. Wanted a copy of the PowerPoint slide to show my husband of twenty-one years to explain my character roots and demystify my TJX allegiance.
Now comes game time: can you guess the price of this merchandise? One item at a time, with bloggers guessing the price from a Michael Kors evening dress to pearl bracelets to American Eagle sweatshirts. Closest without going over wins the item. And all I can say is that these fashionistas clearly shop a lot and know their prices!
Michale Macmillan, President of T.J.Maxx and Marshall’s stores, then shares in his faint Scottish brogue about 23 years of experience and vision going forward from shoes to beauty. Michael shares, “The key to our company is excess merchandise. We found out that beauty industry throws out merchandise not sold once packaging changes. We’ll buy that, we’re not proud! It’s an opportunity for us. Same product, just different look. From hair to skin care to spa products, with many more to come.” So Look out DSW and Sephora! Michael’s passion: improving client service: from perceived sloppy shopping experience due to disorganization in the store or having to shop with your hands, picking through racks, rather than shopping with your eyes. Also- how better get the right goods to the right stores in the right season, accommodating different shopping preferences from Dallas to Chicago.
Intriguing observation: I was the only blogger there with a laptop. Not fashionable for the fashionista? A Mom tendency to type and twitter as we go? Will have to mull this one over. Any thoughts about why?
We next had a splurge or steal fashion show: could we tell the department store outfit from its virtual twin outfit picked up a TJX.
But wait…there’s more. What I can only dub the “Men of Marshall’s” came wheeling in shoes on dessert platters, laden with the latest shoe fashions. On they were cute. Oh…the shoes I mean, of course! But wait…we net got to play a TJX video game, “Designer Dash” where you zip around a store mock-up to collect designer duds. But you can throw purses at your opponent to stun her, collect the items in her cart and rush to check-out. Having seen way too many video games at home played by my kids, I passed on this one.
Gifts handed out to the bloggers: copy of the book How to Be a Budget Fashionista by Kathryn Finney and connected t-shirt “ Frugal is the New Black, pink cashmere shawl, shoe-shaped chocolates, and $250 merchandise cards to shop at the end of the afternoon at the local TJMaxx and Marshall’s stores.
What happens to merchandise that does not sell? Off to charity.
Insider info: trucks arrive only during weekdays. Markdowns tend to hit on Wednesdays. And avoid the weekends: not fresh merchandise, and only part-time sales associates.
By the way, they just struck a deal today with one of the country’s hottest designer, and bought 300,000 units for the holidays. “Outstanding product!” proclaims Michael. Expect this mystery to arrive in the stores around December 12th. And bring your sense of adventure.
