T.J.Maxx Net Sales Increased 6% In The Fourth Quarter.

According to the world clothing shoes and hats net, recently, the US specializes in selling retail companies with low discount products.

The 2017 quarter of fiscal year fourth and the annual financial bulletin were released. Since the financial crisis in 2008, the company's same store sales have maintained 32 quarters of growth, reaching the level that other department stores can not reach.

This is a fantastic company. It probably owns the most "dreamy" business model of retail department stores.

In the fourth quarter of fiscal year 2017, T.J.Maxx net sales increased by 6% to $9 billion 500 million, compared with the same quarter sales increased by 3% compared with the fourth quarter of last year, and the diluted earnings per share were $1.03. Last year, the figure was $0.99, exceeding the 1 US dollar estimated by ZX and Thomson Reuters.

In the 2017 fiscal year ended January 28, 2017, the company's net sales amounted to $33 billion 200 million, an increase of 7% over the same period last year, an increase of 5% compared with the same store sales, an adjusted earnings per share of $3.53, an increase of 6% over the previous year's 3.33 US dollars.

It is worth mentioning that, according to the financial report, T.J.Maxx's sales revenue basically came from offline stores, online only 1%, and in 2016, the company did not shut down any store under the line.

So beautiful report card, of course, after the explosion of its rival Messi department store and Dillard department store, the two department store sales fell 3.5% and 6% respectively.

Comparing Messi's department store with T.J.Maxx's performance in recent years, T.J.Maxx's two department stores are growing at the same time.

But Messi's department store is on the edge of the storm. Selling rumors have never been broken.

In the earnings report, T.J.MaxxCEO and CEO ErnieHerrman used "great" and "pride" to describe the company's performance in the past year.

Indeed, T.J.Maxx should be proud of his performance, ten years ago.

The scale of revenue is two times more than that of T.J.Maxx, and now T.J.Maxx is turning over its rivals.

What company is T.J.Maxx?

Perhaps many domestic friends do not know what company it is. Let me introduce it briefly. T.J.Maxx is a department store specializing in the sale of discount products. It was founded in 1976, and includes three major retail stores, including T.J.Maxx, Marshalls and HomeSense.

Discount department stores and discount products are very objective, usually on the basis of the original price of the 1-6 discount.

Although the price is low, the brand inside is absolutely not low, you can see many luxury goods and light extravagant products.

At present, the company has more than 3800 stores in the world, mainly in the United States, Canada and Europe, but not to Asia.

In the coming year, the group plans to expand and add 1800 new stores, with rival Messi planning to open only 30.

This is a "miracle" in the store's retail stores.

In an article by Fortune, many analysts said that T.J.Maxx is like the unsolved mystery of the US retail market, which has stood for many years.

What "fantasy" business model has achieved T.J.Maxx

From the 2017 earnings report, it can be seen from the performance, passenger volume and number of shops, T.J.Maxx is not like the retail department store in the winter, completely crush its competitors.

It's amazing how T.J.Maxx did it. Actually, many analysts or competitors are studying the business mode of T.J.Maxx, but this company is still mysterious. Xiaobian is not that big. We can see through this amazing company and provide some thoughts.

Downtown outlets

From the commodity level of this department store, it is very similar to orlies.

But in site selection, it is definitely much better than orlies.

Many T.J.Maxx shops are in the center of the city. When I was studying, there were two T.J.Maxx discount stores in the center of the city.

Compared with the outlets in the suburbs, T.J.Maxx usually chooses shops in the advantageous location to ensure adequate passenger flow.

The overall feeling of T.J.Maxx is ground gas. I visited several times, the shopping area is very large, there is no gorgeous decoration, everything is placed in different areas according to the category, a bit like a hypermarket.

There is a sense of "treasure hunt" in it.

Some people think that T.J.Maxx is successful because it satisfies consumers' three shopping psychology: the product price is acceptable, the product is famous brand and valuable, and the shopping mall has excellent location.

The investment bank Cowen&Co conducted a small survey of 2137 women who spent more than 100 thousand dollars in annual consumption, and 28% of them visited T.J.Maxx regularly.

T.J.Maxx gives value to shopping experience rather than simply cheap.

Buy a T-shirt, of course, WAL-MART is the cheapest part of a few dollars, but in T.J.Maxx, you may spend $400 to buy the StellaMcCartney skirt at the original price of 1300 dollars.

Discount brand names usually give people a sense of making money and losing money.

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Selling "new" discount products

A lot of people around me go to the outlets to feel that the big ones have sold hundreds of years ago and bullied me to buy bargains.

T.J.Maxx is not very willing to do such a thing, the company is selling new discount items.

A lot of old stock is not a good thing for department stores, so T.J.Maxx is more willing to buy goods quickly and sell quickly.

According to the world clothing and shoe net, T.J.Maxx handled digestion inventory for 55 days, which is 1 months shorter than the 85 days of other companies.

T.J.Maxx usually sells goods before payment to suppliers.

In the United States, every Monday, three and five, T.J.Maxx will have a lot of new products, so many products will not be replenished after they are sold out.

This kind of quick new and fast selling, although the cost is relatively high (because of the need to pay the cost of goods mailing), but it can keep the fresh sense of goods in the store, and discuss the customer's replacement.

Customers will not like to see what they bought last week. They are on sale this week. Instead, they prefer to see that their purchases are sold out quickly, which proves that they are lucky and have a good eye.

T.J.Maxx will never sell the rest of the goods, only the most fresh ones. It's a bit like correcting the customers' shopping. Don't wait for the discount you buy. Now is the best opportunity.

This sense of urgency usually makes people unconsciously cut their hands.

Commodity supply chain

T.J.Maxx has always been a mystery in the supply chain.

How can there be a steady stream of low-priced high-end goods? How can it be renewed three times a week? If it is a wrong way, such as fake goods, people will not pay the bill.

So where did T.J.Maxx get these products?

Since this is a trade secret, we can only make some guesses based on external analysis.

According to Fortune, when a lot of department stores are trading with some product manufacturers, there will be some cancelling orders or returning some merchandise. T.J.Maxx is looking for opportunities in these cancelled orders.

According to people familiar with the matter, T.J.Maxx has obtained many products in this way.

In addition, there is also a view that some brand manufacturers are willing to produce more than one quarter of the new products. T.J.Maxx will take these surplus products, which is why T.J.Maxx products can keep up with the trend and do not sell outdated goods.

But think carefully about the same kind of products produced by the same manufacturer at the same time, some of which are sold at department stores at the original price, and some are discounted in T.J.Maxx, which is a bit unfair.

Once consumers are discovered, the word of mouth of manufacturers will go down. T.J.Maxx and its cooperation will be wasted.

Xiaobian is thinking about the reasons why these sales can keep growing for T.J.Maxx8 years. These may be part of the company's "dream business model", but feel that the company still has many unsolved mysteries.

The best thing is to grasp the psychological needs of consumers, and at the same time have a strong supply chain that can support its operation.

Without knowing these advantages, they can also support how far T.J.Maxx goes.

In addition, electricity supplier sales accounted for only 1%, which is not something to be happy about.

More interesting reports, please pay attention to the world clothing shoes and hats net.