Soon you’ll be ready to reap the rewards of the supply chain demand. Excess merchandise will be on sale at steep discounts to shoppers. Experts suggest shopping at off-price retailers for home goods and fashion needs.
An off-price retailer is a store that sells merchandise at discounted prices. The savings are usually 60 to 65 percent on average for consumers, reaching up to 90% off the initial price of similar products at brand stores.
According to Lorraine Hutchinson, a research analyst for Bank of America Securities, when it comes to the supply chain fiasco, off-price retailers will gain market share.This will translate into bargains and sales for shoppers.
“And that’s where they get the best deals,” Hutchinson says in an interview on “The Exchange” via MSN. “What we can expect as the year goes on for the off pricers is they will start to see some of these elevated supply chain costs toward the back half.”
Expect to see more designer goods, albeit outdated by 2 or 3 seasons, at off-price retailers. “But at the same time they’ll be getting the benefit of the great deals on great branded products from this liable product sitting outside the ports,” Hutchinson says. “I think it creates a really nice sales opportunity, and furthers expansion and market share gains for this particular sub sector within retail.”
Experts are predicting more designer goods at TJX, the retail chain that includes Marshalls, TJ Maxx, and HomeGoods. “The last time a similar dynamic occurred was back in 2008, which was followed by a decade of off-price share gains and [TJ Maxx and Marshalls] outperformance,” says a group of Wells Fargo analysts and Ike Boruchowin an email shared with RetailDive. “If history repeats itself, TJX should be well positioned to take advantage of the new, premium supply of brands entering the market following 2020, given its robust off-price business model, which could drive further market share gains and push merch margins to all-time highs for the company.”
In the last few weeks, buyers have been buying late arrival clothing and other goods. This is while the backlog of inventory from the shipping containers are still being unloaded at ports.
According to the Wall Street Journal, discount stores are packed to the brim with inventory thanks to the shipping delays. Executives say the supply chain strains have left buyers with lots of available merchandise.
While all off-retailer stores are known for their steep deals, bargain hunters can attest it’s best to have a store for each savings. Kendal Perez, a former savings expert at Coupon Sherpa, agrees. “Handbags, shoes, sunglasses, hair products and fragrance are among the top values at T.J. Maxx and Ross,” Perez says in a Go Banking Rates interview. "Cookware, sheets, decorative pillows and accessories are [also] top values for Ross and T.J. Maxx."
Stores to Shop
When it comes to shopping at off price retailers you need a game plan. For example, if you’re on the hunt for luxury merchandise reduced by as much as 92% then the TJX family–that also includes its U.K. counterpart, TK Maxx–is the places to shop. They also carry the same products you’d see at Macy’s and Nordstrom such as Gucci, Moschino, Dolce & Gabbana, and Calvin Klein. Nordstrom Rack and Saks Off 5th carries designer brands for less. The off-price retail stores experts are predicting to have the largest inventory of designer merchandise at steep discounts are TJX, Ross, and Burlington stores. Off price retailers like Kohl’s, DSW, and Neiman Marcus Last Call are great for fashion like shoes, handbags, and accessories.
Fort Lauderdale Locations:
- Nordstrom Rack - 1540 North Federal Highway, Fort Lauderdale, FL 33304
- Macy's - 2314 East Sunrise Boulevard, Fort Lauderdale, FL 33304
- Saks Off 5th - 12801 West Sunrise Boulevard, Sunrise, FL 33323
- Marshalls - 3200 North Federal Highway, Fort Lauderdale, FL 33306
- Ross - 3200 North Federal Highway, Fort Lauderdale, FL 33306
- T.J. Maxx - 1920 Cordova Road, Fort Lauderdale, FL 33316
- HomeGoods - 12670 West Sunrise Boulevard, Sunrise, FL 33323
- Burlington - 6251 West Sample Road, Coral Springs, FL 33067
- Neiman Marcus Last Call - 12801 West Sunrise Boulevard, Sunrise, FL 33323
- Kohl's - 821 South University Drive, Plantation, FL 33324
- DSW - 4401 Lyons Road, Coconut Creek, FL 33073