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TJ Maxx is thriving.
TJ Maxx's parent company, TJX Companies, reported on November 20 that comparable sales were up 9% at TJ Maxx and Marshalls in the most recent fiscal quarter. It was the 17th consecutive quarter that customer traffic was up at the stores.
The off-price retailer has been benefiting from a disappearing middle class and a higher demand for budget options — two factors that have been hurting department stores like JCPenney and Sears .
Many shoppers have become accustomed to heavy discounting in the past decade.
"The value-seeking mindset is an interesting one as it is often assumed that it is most prevalent during times of economic difficulty. However, our data shows that it is now an underlying constant in terms of what consumers look for when shopping," Neil Saunders, managing director of GlobalData Retail, wrote in a note to investors in August .
TJ Maxx has also been able to avoid the ill effects of declining foot traffic to shopping malls.Most TJ Maxx stores are located in suburban strip malls rather than enclosed shopping malls, so the discount chain is less likely to be affected by the declining foot traffic that has hurt malls and the retailers that depend on them.
Like other off-price retailers, TJ Maxx is know for offering a treasure-hunt experience in stores, which is difficult to replicate online.
We recently visited TJ Maxx and saw why the store is doing so well:
I went to TJ Maxx in Manhattan's Financial District.
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Business Insider/Jessica Tyler
At the front of the store was a table with makeup and beauty products. I didn't recognize any of the brand names.
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Business Insider/Jessica Tyler
The displays in the front of the store had signs reading "high end designers without the high prices."
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Business Insider/Jessica Tyler
The women's clothing was to the right of the entrance. Shopping at TJ Maxx generally feels like a treasure hunt.
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Business Insider/Jessica Tyler
All of the different styles and brands the stores offer are mixed in together, so you never know what you might find.
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Business Insider/Jessica Tyler
The beauty products were next to the women's clothing. This section was also set up to be a bit of a treasure hunt.
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Business Insider/Jessica Tyler
It's very different from shopping for makeup at any other store because nothing is organized by brand.
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Business Insider/Jessica Tyler
TJ Maxx carries perfumes from brands like Bvlgari and Marc Jacobs. Most designer perfumes are priced under $75.
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Business Insider/Jessica Tyler
There were tons of designer handbags for under $50 as well.
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Business Insider/Jessica Tyler
The men's clothing was set up very similarly to the women's clothing.
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Business Insider/Jessica Tyler
On top of the already low prices, there's a clearance section with men's and women's clothing and accessories.
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Business Insider/Jessica Tyler
TJ Maxx had a big toy section on the first floor. It was a bit of a mess, but it carried a big variety of products.
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Business Insider/Jessica Tyler
Behind the toys were shoes. TJ Maxx carries brands like Nike, Adidas, Ugg, and Sperry at discounted prices.
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Business Insider/Jessica Tyler
Downstairs was even more of a treasure hunt. I found everything you might need to stock a kitchen ...
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Business Insider/Jessica Tyler
... and a lot of random home products.
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Business Insider/Jessica Tyler
It was also filled with holiday decor and seasonal products when I visited.
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Business Insider/Jessica Tyler
TJ Maxx had a few aisles with coffee, tea, snacks, supplements, and spices. Almost everything cost less than $10.
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Business Insider/Jessica Tyler
There were more snacks and chocolates by the register as well. The lines were short, but there were a lot of people there shopping. TJ Maxx accepts returns on purchases for up to 30 days with a receipt.
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Business Insider/Jessica Tyler
Source: TJ Maxx
TJ Maxx is inexpensive to shop at, and it's set up in such a way that you never knew what you might find. It's clear why it's so popular with today's shoppers.
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Business Insider/Jessica Tyler
See Also:
SEE ALSO: Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why.