For years, shoppers have flocked to discount stores like T.J. Maxx for deals on their favorite designer brands. Now, due to the pandemic, the global supply chain delays, and shortages, stores are forced to either raise prices or lose products completely. TJX companies are suffering from both.
Ernie Herrman, CEO of all TJX companies including T.J. Maxx, Marshalls, and HomeGoods, released a statement about raising prices on designer brands. He stated, “Our strategy to surgically raise retail [prices] on select items is well underway, and we believe it is working very effectively.” Herrman claims their slight adjustments in price received “very good success,” and stores did not receive any negative feedback from customers. He did not specify which brands in particular increased in price.
The reasons for these price increases include the fact that there are less products on shelves due to the supply chain crisis, as well as a higher demand of products from customers because of the holiday season. For retailers, they also need to make up the money they’ve lost to paying workers higher wages because of the worker shortage.
However, not only do retailers have to deal with changing their prices to meet customer demands, they also have designer brands pulling their products from their stores. Under Armour, Ralph Lauren, Carter’s, Steve Madden, and Levi’s are among the most popular brands that will no longer give their clothing to discount stores for discounted prices. This is due to the fact that the designer brands themselves do not have the inventory to give away for a discount because they are selling well enough on their own websites and in their own stores. High end brands have wished for years to pull away from discount retailers anyway because they believe discounts hurt their image and their pricing power over their customers.
Currently, there is no exact date for when these brands will leave T.J. Maxx and other discount retailers or when prices will increase again, so stock up while you can.