Jessica Tyler

<p>TJ Maxxis thriving as other retailers struggle.</p>

<p>TJ Maxx's parent company, TJX Companies, <a id="750fbe40-6ca3-39fd-a7da-660dee0f0d00" href="http://investor.tjx.com/phoenix.zhtml?c=118215&amp;p=irol-newsArticle&amp;ID=2377805">  reported on November 20 </a> 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.</p>

<p>The off-price retailer has been <a id="0fcef99f-c045-3a15-a580-a48c2bd67083" href="https://www.businessinsider.com/american-middle-class-disappearing-department-stores-suffer-2018-6?utm_source=intl&amp;utm_medium=ingest">  benefiting from a disappearing middle class </a> and higher demand for budget options — two factors that have been hurting department stores like <a id="11e1560a-9a7d-366e-a05e-8a8b2d34d86e" href="https://www.businessinsider.com/category/jc-penney?utm_source=intl&amp;utm_medium=ingest">  JCPenney </a> and <a id="21f07198-b111-32fc-a44a-5d8db445e834" href="https://www.businessinsider.com/category/sears?utm_source=intl&amp;utm_medium=ingest">  Sears </a> .</p>

<p>Shoppers have largely become accustomed to heavy discounting in the past decade.</p>

<p>"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, <a id="6d477c99-0096-3ede-a40d-f847693a57c9" href="https://www.businessinsider.com/tj-maxx-success-shows-customers-addicted-to-discounts-2018-8?utm_source=intl&amp;utm_medium=ingest">  wrote in a note to investors in August </a> .</p>

<p>TJ Maxx is able to keep its prices low using a number of different strategies.</p>

<p><a id="8348a907-e368-300c-a2af-179292c1ecef" href="https://tjmaxx.tjx.com/store/jump/topic/how-we-do-it/2400087">  According to the company </a> , much of it comes down to the way TJ Maxx buys its merchandise. It purchases stock from manufacturers that make too much and department stores that overbuy, and it jumps on deals at the end of the season.</p>

<p>Here's how TJ Maxx sells its designer goods at such low prices:</p>

<h1> TJ Maxx is an off-price retailer, meaning it sells brand names and designer products for 20-60% less than department stores and other retailers. </h1>

<p>Source: <a id="f34f50ce-027e-325c-a1da-9423b06b3499" href="https://tjmaxx.tjx.com/store/jump/topic/how-we-do-it/2400087">  TJ Maxx </a></p>

<h1> TJ Maxxs buyers search year-round for products. </h1>

<h1> TJ Maxx gets its inventory from a few different sources, including boutique labels, designer brands, and up-and-coming labels. </h1>

<h1> TJ Maxx also has merchandise manufactured exclusively for its stores, which saves the company money and allows it to pass those savings along to shoppers. </h1>

<h1> When manufacturers overproduce items, TJ Maxx takes advantage and negotiates to get lower prices for the excess inventory. </h1>

<h1> It does the same when department stores overbuy. </h1>

<h1> The diversity in TJ Maxxs buying methods helps the retailer pass savings on to customers. It buys orders that department stores canceled ... </h1>

<h1> ... surplus products from manufacturers ... </h1>

<h1> ... and closeout deals at the end of a season. </h1>

<h1> Many of the designer products it sells are from past seasons, so they can be bought and sold for less. </h1>

<h1> TJ Maxx also passes along savings by keeping its store design no-frills. </h1>

<h1> By spending less on its store design, it can sell its products for less. </h1>

<ul><li> <a href="https://www.businessinsider.com/peloton-and-soulcycle-compared-photos-details-2018-3?utm_source=intl&amp;utm_medium=ingest">New data says Peloton now has more customers than rival SoulCycle. We tested workouts from both — here’s the verdict.</a> </li><li> <a href="https://www.businessinsider.com/burger-king-mcdonalds-whopper-deal-weirdest-fast-food-ads-2018-12?utm_source=intl&amp;utm_medium=ingest">Burger King is forcing customers to go to McDonald's for one-cent Whoppers. Here are 7 of the weirdest deals and ads in recent fast-food history.</a> </li><li> <a href="https://www.businessinsider.com/dollar-general-vs-five-below-which-dollar-store-is-better-2018-9?utm_source=intl&amp;utm_medium=ingest">We shopped at Dollar General and Five Below to see which rapidly growing discount store offered a better experience, and the winner was clear</a> </li></ul>

<p><strong> SEE ALSO: <span id="47fad507-b0bc-3639-af0c-ba0132f5b8e5" itemtype="link" itemscope="itemscope">  Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why. </span> </strong></p>

Here's how TJ Maxx keeps its prices so low (TJX)

<p>Dollar stores have been growing like crazy recently, with Dollar General, Dollar Tree, and Five Below all opening tons of new stores in 2018. From 2010 to 2015, <a id="083e73c0-6549-386e-a747-4bea9ecdba0a" href="https://seekingalpha.com/article/4031521-dollar-tree-amazon-proof-company-17-percent-upside">  dollar-store salesgrew </a> from $30.4 billion to $45.3 billion in the United States.</p>

<p><a id="f63807b5-ee02-3911-af02-4dbb7bc5db52" href="https://markets.businessinsider.com/stocks/dltr-stock?utm_source=intl&amp;utm_medium=ingest">  Dollar Tree </a> , which recently acquired the Family Dollar chain, currently has around <a id="0ba2e71b-85b2-37da-a152-abb1348d9d02" href="https://www.businessinsider.com/dollar-tree-dollar-general-compared-pictures-details-2018-3?utm_source=intl&amp;utm_medium=ingest">  14,000 locations </a> . In the third quarter of 2018, Dollar Tree reported <a id="c7e01613-0906-355a-a43b-1f9431a54316" href="https://www.dollartreeinfo.com/news-releases/news-release-details/dollar-tree-inc-reports-results-third-quarter-fiscal-2018">  comparable sales were up 2.3% </a> . Dollar Tree said that in 2019, it plans to open 350 more namesake locations, 200 new Family Dollar locations, and rebrand 200 Family Dollar locations as Dollar Tree stores.</p>

<p>Dollar General currently has around <a id="08635240-0b43-3b51-a407-f66ec4e77c4c" href="https://newscenter.dollargeneral.com/company+facts/fastfacts/">  15,000 locations </a> . It is on track to open 900 new stores in 2018. During acall with investorson Tuesday, the company said it plans to open 975 more stores in 2019.</p>

<p>While not a traditional dollar store in that its products are priced up to $5, <a id="268e19c6-88db-3913-adca-faddb3cda4d4" href="https://markets.businessinsider.com/stocks/five-stock?utm_source=intl&amp;utm_medium=ingest">  Five Below </a> announced its own plans to grow earlier this year. In the third quarter of 2018, Five Below reported comparable <a id="4c2a3370-283b-3bf8-a1d3-79779cf3ab88" href="http://investor.fivebelow.com/financial-information/quarterly-results/default.aspx">  sales grew by 4.8%. </a> It opened 53 new stores this quarter, bringing its store count to 745.</p>

<p>One of those stores that opened was a <a id="3d4e3fe2-9665-37c2-a6c1-a96a88c9c3a5" href="https://www.businessinsider.com/five-below-opens-store-fifth-avenue-photos-2018-11?utm_source=intl&amp;utm_medium=ingest">  flagship location on New York's Fifth Avenue </a> , one of the most expensive shopping destinations in the US.</p>

<p>We compared what it's like to shop at the three rapidly growing stores and found that one offered a far better experience. Here's the verdict:</p>

<h1> We visited Five Below in Queens, New York. </h1>

<h1> Everything in the store cost $5 or less, and there were a few sales being advertised on top of the already low prices. </h1>

<h1> There were wheelbarrows filled with school supplies for $5 or less at the front of the store ... </h1>

<h1> ... and backpacks, notebooks, and other back-to-school essentials throughout the store. </h1>

<h1> Five Below carried a ton of electronics like headphones and phone chargers. </h1>

<h1> An entire section of the store sold toys, games, and craft supplies. </h1>

<h1> Near the toys and games, there was plenty of fitness and sporting equipment. </h1>

<h1> Five Below carried a lot of home decor, which was surprisingly high quality for only $5. </h1>

<h1> It also carried decent quality clothes and shoes for only $5 ... </h1>

<h1> ... and a ton of cosmetic products from drugstore brands and smaller brands. Like the clothing, the cosmetics were surprisingly high-quality for the price. </h1>

<h1> Near the front of the store were essentials like toothbrushes, first-aid supplies, and tissues. </h1>

<h1> Five Below didnt sell any food, but it sold a ton of candy and soda by the register. </h1>

<h1> Dollar Tree was the next store we went to, also in Queens. </h1>

<h1> Seasonal Halloween products were displayed near the entrance. </h1>

<h1> There was a ton of school supplies towards the front of the store, similar to what we found at Five Below. </h1>

<h1> But much of the store was a complete mess. </h1>

<h1> There were a lot of electronics for $1, but the selection wasnt as big as at Five Below. </h1>

<h1> There were toys and games, but it didnt have as big a selection as Five Below, and the aisle was an absolute mess. There were boxes everywhere, toys left on the floor, and pages torn out of coloring books. </h1>

<h1> Dollar Tree sold basic clothing items like socks and plain T-shirts, but it was hard to shop in this particular aisle because of how messy it was. </h1>

<h1> Almost every aisle in the store was equally as messy. </h1>

<h1> It had a small selection of cosmetics, and even though nothing cost more than $1, it didnt offer as much as Five Below. </h1>

<h1> It did, however, offer a lot more essentials than Five Below. It had a big aisle of first-aid supplies, over-the-counter medications, vitamins, and other products you would find at a drugstore. </h1>

<h1> It also carried a lot of canned food and basic baking products, in addition to snacks and frozen foods. Everything was $1. </h1>

<h1> Finally we went to Dollar General, which was down the block from Dollar Tree. </h1>

<h1> The front of the store had a clearance table with seasonal summer products. </h1>

<h1> Dollar General didnt have nearly as many school supplies as the other two stores did ... </h1>

<h1> ... and the electronics it offered were nearly double the price of Dollar Tree and Five Below. </h1>

<h1> It had a handful of toys and games for under $5 ... </h1>

<h1> ... and it had an aisle of inexpensive and seasonal home decor. </h1>

<h1> The makeup section at Dollar General was nearly identical to what you would find at a drugstore, and the prices were about the same as well. </h1>

<h1> Dollar General definitely had the most food out of the three stores, though it was a bit more expensive than Dollar Tree. </h1>

<h1> After visiting all three stores, it seemed that Five Below had the best deals. The biggest drawback was that it didnt sell food, but it was, all in all, much cleaner. It offered the best shopping experience of the three, and the products were higher quality. </h1>

We shopped at 3 of the biggest dollar-store chains in America to see which one offered the best experience, and the winner was clear (FIVE, DLTR, DG)

<p>Dollar stores have been growing like crazy over the past few years.</p>

<p>From 2010 to 2015, <a id="e01e0453-8454-3a88-aeba-dbc6ce6db5a8" href="https://seekingalpha.com/article/4031521-dollar-tree-amazon-proof-company-17-percent-upside">  dollar-store sales </a> <a id="8c0046c7-676d-3346-a15a-c64f17d5d055" href="https://seekingalpha.com/article/4031521-dollar-tree-amazon-proof-company-17-percent-upside">  grew </a> from $30.4 billion to $45.3 billion in the United States. Dollar General, Dollar Tree, and Family Dollar have all announced plans to <a id="71c729b9-d6e5-3dba-a811-b332135aabb3" href="https://www.usatoday.com/story/money/retail/2018/05/15/dollar-stores-dominating-brick-and-mortar-retail/34662801/">  open hundreds of stores </a> this year.</p>

<p>Dollar General currently has around <a id="08635240-0b43-3b51-a407-f66ec4e77c4c" href="https://newscenter.dollargeneral.com/company+facts/fastfacts/">  15,000 locations </a> . This year, it is on track to <a id="78656623-6973-3331-af3b-1471a2584fff" href="https://www.businessinsider.com/dollar-general-opening-stores-photos-details-2018-2?IR=T?utm_source=intl&amp;utm_medium=ingest">  open 900 stores </a> at a rate of about three stores a day, with plans to open a further 975 stores in 2019. In the third quarter of 2018, Dollar General reported same-store sales were up 2.8%.</p>

<p>While not a traditional dollar store in that its products are priced up to $5, <a id="268e19c6-88db-3913-adca-faddb3cda4d4" href="https://markets.businessinsider.com/stocks/five-stock?utm_source=intl&amp;utm_medium=ingest">  Five Below </a> announced its own plans to grow earlier this year. Five Below reported comparable <a id="e9733975-54eb-3483-aabe-9c24bb286329" href="http://investor.fivebelow.com/financial-information/quarterly-results/default.aspx">  sales grew by 4.8% </a> in the third quarter, and it opened 53 new stores, bringing its total count to 745.</p>

<p>One of the stores that opened was a <a id="3d4e3fe2-9665-37c2-a6c1-a96a88c9c3a5" href="https://www.businessinsider.com/five-below-opens-store-fifth-avenue-photos-2018-11?utm_source=intl&amp;utm_medium=ingest">  flagship location on New York's Fifth Avenue </a> , one of the most expensive shopping destinations in the US.</p>

<p>We compared what it's like to shop at the two rapidly growing dollar stores and found that one offered a far better experience. Here's the verdict:</p>

<h1> The Dollar General we visited was in Queens, New York. </h1>

<h1> In the front of the store was a table with seasonal summer products that were 40% off. </h1>

<h1> Also near the front of the store was a small shelf with phone chargers that cost between $5 and 15. </h1>

<h1> The aisles nearest to the entrance were filled with chips and candy anywhere from $1 to $5. </h1>

<h1> It also carried sodas and energy drinks ... </h1>

<h1> ... spices, condiments, pasta, cereal, and other basic food products. There was a decent variety of different brands and sizes, including its own private-label Clover Valley brand. </h1>

<h1> There was a small aisle with drugstore makeup brands like Maybelline and Covergirl, ranging anywhere from $3 to $10 for most products. There were a ton of products crammed into the small space. </h1>

<h1> There was a small shelf of $3 books in the back corner of the store, but there wasnt a ton to choose from. </h1>

<h1> There were a few aisles of home decor and seasonal Halloween and Christmas products, most of which cost $3 or less, but it was pretty messy. There were a lot of empty shelves towards the back of the store. </h1>

<h1> It also had a small selection of toys ... </h1>

<h1> ... lots of cleaning supplies, storage bins, and other home products ... </h1>

<h1> Even though most things in the store were pretty inexpensive as is, there was an entire aisle of products that cost exactly $1. </h1>

<h1> The store also had a clearance section, though it was a bit of a mess. </h1>

<h1> By the register were magazines, candy, gum, and other small products. The store had a pretty big variety of products, and even though it was a bit disorganized, youd definitely be able to find most things you need for under $15. </h1>

<h1> The Five Below we went to was also in Queens. </h1>

<h1> Even though everything in the store already cost $5 or less, many products were 50% off. </h1>

<h1> Near the front of the store were wheelbarrows filled with school supplies. Dollar General had some school supplies, but not nearly as many as Five Below. </h1>

<h1> Five Below carried electronics like headphones and phone chargers, and everything cost under $5. </h1>

<h1> Five Below didnt carry any food like Dollar General did, but the front of the store was like a small candy store. There was also a small cooler selling drinks like Red Bull and soda for under $5. </h1>

<h1> There were a ton of cosmetics products from drugstore brands and smaller brands alike. There was a surprising amount of all-natural and cruelty-free brands, which are typically more expensive. </h1>

<h1> There was a wall of $5 clothes and shoes, selling simple styles like black boots, plain tank tops, and pajamas that you might also find at a store like Target. The styles were all very basic, and the quality was better than youd expect on a $5 pair of shoes. </h1>

<h1> The middle of the store had books for $5 or less, and it carried a much bigger selection than Dollar General. </h1>

<h1> Five Below didnt have seasonal products out yet when we visited, but it did have a lot of home decor products for around the same price as Dollar General. </h1>

<h1> ... and craft supplies. While it had a lot more toys, games, and arts and crafts supplies, it didnt have as many cleaning supplies or pet products as Dollar General. </h1>

<h1> Even though Dollar General had more in terms of food and other necessities, the products that the stores did have in common were higher quality and less expensive at Five Below than Dollar General, and the store was also cleaner, brighter, and more pleasant to shop in, making it the clear winner. </h1>

<ul><li> <a href="https://www.businessinsider.com/tj-maxx-off-price-stores-win-retail-2018-12?utm_source=intl&amp;utm_medium=ingest">TJ Maxx has thrived while other retailers struggle in an evolving shopping industry. We shopped there and saw why.</a> </li><li> <a href="https://www.businessinsider.com/burger-king-mcdonalds-whopper-deal-weirdest-fast-food-ads-2018-12?utm_source=intl&amp;utm_medium=ingest">Burger King is forcing customers to go to McDonald's for one-cent Whoppers. Here are 7 of the weirdest deals and ads in recent fast-food history.</a> </li><li> <a href="https://www.businessinsider.com/kohls-wins-department-stores-struggle-2018-12?utm_source=intl&amp;utm_medium=ingest">Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why.</a> </li></ul>

<p><strong> SEE ALSO: <span id="e44c7214-16c2-3e10-a3f7-5800a2b54fbc" itemtype="link" itemscope="itemscope">  These are the brands with the most loyal shoppers </span> </strong></p>

<p><strong> DON'T MISS: <span id="4a1efcea-ef0e-3f01-aa07-f0a530184ebb" itemtype="link" itemscope="itemscope">  We shopped at Kohl's and Burlington to see which was a better store, and there was a clear winner </span> </strong></p>

We shopped at Dollar General and Five Below to see which rapidly growing discount store offered a better experience, and the winner was clear (FIVE, DG)

<p>TJ Maxx's parent company, TJX Companies, <a href="http://investor.tjx.com/phoenix.zhtml?c=118215&amp;p=irol-newsArticle&amp;ID=2377805" id="750fbe40-6ca3-39fd-a7da-660dee0f0d00">  reported on November 20 </a> 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.</p>

<p>The off-price retailer has been <a href="https://www.businessinsider.com/american-middle-class-disappearing-department-stores-suffer-2018-6?utm_source=intl&amp;utm_medium=ingest" id="0fcef99f-c045-3a15-a580-a48c2bd67083">  benefiting from a disappearing middle class </a> and a higher demand for budget options — two factors that have been hurting department stores like <a href="https://www.businessinsider.com/category/jc-penney?utm_source=intl&amp;utm_medium=ingest" id="11e1560a-9a7d-366e-a05e-8a8b2d34d86e">  JCPenney </a> and <a href="https://www.businessinsider.com/category/sears?utm_source=intl&amp;utm_medium=ingest" id="21f07198-b111-32fc-a44a-5d8db445e834">  Sears </a> .</p>

<p>Many shoppers have become accustomed to heavy discounting in the past decade.</p>

<p>"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, <a href="https://www.businessinsider.com/tj-maxx-success-shows-customers-addicted-to-discounts-2018-8?utm_source=intl&amp;utm_medium=ingest" id="6d477c99-0096-3ede-a40d-f847693a57c9">  wrote in a note to investors in August </a> .</p>

<p>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.</p>

<p>Like other off-price retailers, TJ Maxx is know for offering a treasure-hunt experience in stores, which is difficult to replicate online.</p>

<p>We recently visited TJ Maxx and saw why the store is doing so well:</p>

<h1> I went to TJ Maxx in Manhattan's Financial District. </h1>

<h1> At the front of the store was a table with makeup and beauty products. I didn't recognize any of the brand names. </h1>

<h1> The displays in the front of the store had signs reading "high end designers without the high prices." </h1>

<h1> The women's clothing was to the right of the entrance. Shopping at TJ Maxx generally feels like a treasure hunt. </h1>

<h1> All of the different styles and brands the stores offer are mixed in together, so you never know what you might find. </h1>

<h1> The beauty products were next to the women's clothing. This section was also set up to be a bit of a treasure hunt. </h1>

<h1> It's very different from shopping for makeup at any other store because nothing is organized by brand. </h1>

<h1> TJ Maxx carries perfumes from brands like Bvlgari and Marc Jacobs. Most designer perfumes are priced under $75. </h1>

<h1> There were tons of designer handbags for under $50 as well. </h1>

<h1> The men's clothing was set up very similarly to the women's clothing. </h1>

<h1> On top of the already low prices, there's a clearance section with men's and women's clothing and accessories. </h1>

<h1> 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. </h1>

<h1> Behind the toys were shoes. TJ Maxx carries brands like Nike, Adidas, Ugg, and Sperry at discounted prices. </h1>

<h1> Downstairs was even more of a treasure hunt. I found everything you might need to stock a kitchen ... </h1>

<h1> ... and a lot of random home products. </h1>

<h1> It was also filled with holiday decor and seasonal products when I visited. </h1>

<h1> TJ Maxx had a few aisles with coffee, tea, snacks, supplements, and spices. Almost everything cost less than $10. </h1>

<h1> 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. </h1>

<p>Source: <a href="https://tjmaxx.tjx.com/store/jump/topic/return-policy-for-items-purchased-in-stores/18400006p" id="a91b9d45-984a-3362-a4bd-083dbdf54f5d">  TJ Maxx </a></p>

<h1> 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. </h1>

<ul><li> <a href="https://www.businessinsider.com/best-retail-jobs-glassdoor-2018-11?utm_source=intl&amp;utm_medium=ingest">Here are the best retailers to work for in 2019, according to employees</a> </li><li> <a href="https://www.businessinsider.com/kirkland-brand-items-costco-shouldnt-buy-2018-12?utm_source=intl&amp;utm_medium=ingest">5 times you shouldn't buy the Kirkland brand at Costco</a> </li><li> <a href="https://www.businessinsider.com/kohls-wins-department-stores-struggle-2018-12?utm_source=intl&amp;utm_medium=ingest">Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why.</a> </li></ul>

TJ Maxx has thrived while other retailers struggle in an evolving shopping industry. We shopped there and saw why. (TJX)

<p><a id="8e5e37df-3394-3687-a547-65d6ce4ed90f" href="https://markets.businessinsider.com/stocks/kss-stock?utm_source=intl&amp;utm_medium=ingest">  Kohl's </a> is thriving as other <a id="32a75a61-5667-3fc1-aebf-b485b8857e53" href="https://www.businessinsider.com/why-department-stores-sears-jcpenney-are-struggling-2018-10?utm_source=intl&amp;utm_medium=ingest">  department stores struggle </a> .</p>

<p>In November, <a id="5e3f7dae-021e-3476-a942-60207b9f4465" href="https://corporate.kohls.com/content/dam/kohlscorp/news/2018/november/q3-earnings/Earnings%20Release%202018%20Q3.pdf">  Kohl's reported </a> that comparable sales were up 2.5% in the third quarter of 2018. Meanwhile, other department stores like <a id="21f07198-b111-32fc-a44a-5d8db445e834" href="https://www.businessinsider.com/category/sears?utm_source=intl&amp;utm_medium=ingest">  Sears </a> and <a id="11e1560a-9a7d-366e-a05e-8a8b2d34d86e" href="https://www.businessinsider.com/category/jc-penney?utm_source=intl&amp;utm_medium=ingest">  JCPenney </a> have been struggling through crippling sales declines.</p>

<p>One major advantage that Kohl's has over other department stores is that <a id="711e950a-ac68-34a9-afa8-470702502463" href="https://www.businessinsider.com/kohls-is-defying-the-retail-meltdown-2018-1?utm_source=intl&amp;utm_medium=ingest">  nine out of 10 Kohl's </a> stores are in suburban strip malls rather than enclosed shopping malls, so it isn't as strongly effected by declining foot traffic to malls. Kohl's has about 1,100 stores.</p>

<p>The low-price department store has also been <a id="0fcef99f-c045-3a15-a580-a48c2bd67083" href="https://www.businessinsider.com/american-middle-class-disappearing-department-stores-suffer-2018-6?utm_source=intl&amp;utm_medium=ingest">  benefiting from a disappearing middle class </a> and a higher demand for budget options — two factors that have been hurting more high-end department stores.</p>

<p>Kohl's has been making some major changes to its stores. <a id="c0d27803-dd76-3dfa-a32e-12b6079a70b8" href="https://www.businessinsider.com/kohls-is-defying-the-retail-meltdown-2018-1?utm_source=intl&amp;utm_medium=ingest">  In March, </a> the company announced a plan to bring the discount grocery chain Aldi to 10 of its stores in a pilot test.</p>

<p>"This quarter, we launched two pilot stores where we are testing a new customer service center concept, that includes a centralized checkout, a new impulse merchandising approach, self-checkout, new self-service kiosks and buy online, pick up in-store lockers," CEO Michelle Gass said in the company's <a id="69ca0047-0143-3bf0-a6d5-35e0d8c4dfef" href="https://seekingalpha.com/article/4223643-kohls-corporation-kss-ceo-michelle-gass-q3-2018-results-earnings-call-transcript?page=6">  third-quarter earnings call. </a></p>

<p>The department-store chain has also expanded its partnership with Amazon and is now accepting returns from the e-commerce giant in about 100 stores. Kohl's has tripled the amount of Amazon pop-up shops inside Kohl's from 10 to 30 stores, and it will continue selling Amazon-branded products in all stores to help drive traffic.</p>

<p>We visited a Kohl's store in Jersey City, New Jersey, and saw for ourselves why the retailer's changes are helping it thrive:</p>

<h1> Unlike most Kohls stores, the location we visited in Jersey City, New Jersey, was in a shopping mall. </h1>

<h1> Menswear was at the front of the store. Kohls carries name brands like Under Armour, Adidas, and Nike in its stores. </h1>

<h1> Kohls prices are generally inexpensive to begin with, and many products in store were on sale. </h1>

<h1> Products throughout the store were as much as 50% off, appealing to budget shoppers more than other high-end department stores. </h1>

<h1> The menswear department took up a little less than half of the first floor. Everything was very neat and organized throughout the store, and it never felt cluttered. </h1>

<h1> Near the menswear department were accessories like handbags ... </h1>

<h1> ... and the beauty department. </h1>

<h1> It was similar to that of any other department store, but the products prices were on the lower end. </h1>

<h1> The womens department was on the other side of the makeup. It carried sportswear from brands like Adidas ... </h1>

<h1> ... and a ton of other brands for under $40. </h1>

<h1> There was also a big clearance section offering as much as 80% off certain products, along with deals like buy one, get one half off. </h1>

<h1> Upstairs, there was a huge childrens department ... </h1>

<h1> ... which included a recently remodeled toy department. Like many other retailers, Kohls is trying to win over sales from former Toys R Us customers. </h1>

<h1> The toy department — which was about half the size when we previously visited this store in March — had a small branded FAO Schwarz display, as well as other popular toys like Hatchimals and LOL Surprise. </h1>

<h1> Near the toy department, there were shoes ... </h1>

<h1> The electronics department had recently been remodeled as well. It sold video games, speakers ... </h1>

<h1> ... and Amazon devices like the Echo Dot. </h1>

<h1> This particular location does not accept Amazon returns. Near the customer service desk, I found new pickup lockers for online orders, encouraging shoppers to shop online and pick up in-store. </h1>

<h1> Shopping at Kohls, it was clear why the department store is thriving as other department stores struggle. </h1>

<ul><li> <a href="https://www.businessinsider.com/kohls-vs-burlington-which-store-is-better-2018-11?utm_source=intl&amp;utm_medium=ingest">We shopped at Kohl's and Burlington to see which was a better store, and there was a clear winner</a> </li><li> <a href="https://www.businessinsider.com/how-holiday-shopping-has-changed-over-the-years-2018-11?utm_source=intl&amp;utm_medium=ingest">Photos show how much holiday shopping has changed in America over the years</a> </li><li> <a href="https://www.businessinsider.com/halal-guys-job-typical-day-2018-12?utm_source=intl&amp;utm_medium=ingest">Here's what a typical work day is like for a Halal Guys cart vendor, who prepares food for hundreds of customers, works until 5:30 in the morning, and even braves hurricanes to serve hot meals</a> </li></ul>

<p><strong> SEE ALSO: <span id="4a1efcea-ef0e-3f01-aa07-f0a530184ebb" itemtype="link" itemscope="itemscope">  We shopped at Kohl's and Burlington to see which was a better store, and there was a clear winner </span> </strong></p>

Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why. (KSS)

<p><a id="a0069cd9-4207-3fce-a042-cc80c3cea13f" href="https://markets.businessinsider.com/stocks/wmt-stock?utm_source=intl&amp;utm_medium=ingest">  Walmart </a> has been worried about <a id="172a468b-14b9-39f8-a90d-07e2db81550c" href="https://markets.businessinsider.com/stocks/amzn-stock?utm_source=intl&amp;utm_medium=ingest">  Amazon </a> for over a decade, <a id="e354146c-3928-3847-a5a5-094e14515a39" href="https://www.businessinsider.com/walmart-has-been-worried-about-amazon-since-before-2003-2018-10?utm_source=intl&amp;utm_medium=ingest">  according to former Walmart board member </a> John Chambers. In 2003, Amazon was eight years old and was just starting to turn a profit. Still, Walmart was worried about the growing online retailer.</p>

<p>"This is something that I know. I saw Amazon coming at Walmart," <a id="13d30c3c-b4dc-3235-abb9-564657006411" href="https://www.businessinsider.com/walmart-has-been-worried-about-amazon-since-before-2003-2018-10?utm_source=intl&amp;utm_medium=ingest">  Chambers told Business Insider's Julie Bort </a> .</p>

<p>To keep up with the rapidly growing Amazon, Walmart has had to make a lot of changes to its business, from introducing two-day shipping and grocery delivery to spending more than $3 billion on its acquisition of Jet.com.</p>

<p>Here are all of the ways Walmart has evolved to keep up with Amazon:</p>

<h1> Walmart.com was initially launched in 2000. </h1>

<p>Source: <a id="a6605f8e-bbca-3023-a3ea-17edd628e5cb" href="https://corporate.walmart.com/our-story/our-history">  Walmart </a></p>

<h1> Amazon had been founded five years earlier, in 1995, as a website that sold books. </h1>

<p>Source: <a id="ce990dab-323c-324a-a98c-13e737a20236" href="https://www.businessinsider.com/jeff-bezos-amazon-history-facts-2017-4?utm_source=intl&amp;utm_medium=ingest">  Business Insider </a></p>

<h1> In 2003, Amazon was eight years old and was just starting to turn a profit. Walmart had nearly $245 billion in sales in 2003. Its $8 billion in profit was more than all of Amazons sales that year. Still, Walmart was worried about the disruptive online retailers potential. </h1>

<p>Source: <a id="dcd23a89-284f-31ba-a0c2-d0d548ad8b9a" href="https://www.businessinsider.com/walmart-has-been-worried-about-amazon-since-before-2003-2018-10?utm_source=intl&amp;utm_medium=ingest">  Business Insider </a></p>

<h1> "This is something that I know. I saw Amazon coming at Walmart," former Walmart board member John Chambers told Business Insiders Julie Bort. </h1>

<h1> One of Walmarts earliest innovations to online shopping was when it launched its Site to Store service in 2007, allowing customers to shop online and pick up their orders in-store. </h1>

<h1> The program has expanded quite a bit over the past decade. Now, shoppers are able to order online and pick up in-store at a pickup tower or locker. </h1>

<h1> But e-commerce didnt become a huge focus for Walmart until somewhat recently. In 2015, Walmart began testing its ShippingPass program, which offered shoppers free three-day shipping if they were willing to pay a $50 annual subscription fee. That was roughly half the $99 that Amazon Prime cost at the time. </h1>

<p>Gunnar Rathbun/AP Images for Walmart</p>

<p>Source: <a id="57d8e130-1ad9-38db-ab46-3f40e6f3f85b" href="https://www.marketwatch.com/story/wal-mart-ends-shippingpass-pilot-launches-free-two-day-shipping-2017-01-31">  MarketWatch </a></p>

<h1> In 2016, Walmart dropped its three-day shipping guarantee down to two days, the same that Prime offered. </h1>

<p>Source: <a id="ee6a444e-6be4-3c64-a3f0-935a5acdf226" href="https://www.engadget.com/2016/05/12/wal-mart-two-day-shipping-subscription/">  Engadget </a></p>

<h1> Also in 2016, Walmart acquired e-commerce startup Jet.com for $3.3 billion. </h1>

<p>Source: <a id="f13281bb-c1ee-3f86-ace6-4d4d61e701d1" href="https://www.businessinsider.com/walmart-is-buying-jetcom-2016-8?utm_source=intl&amp;utm_medium=ingest">  Business Insider, </a> <a id="2619dc1f-e190-3282-a5d8-607cb909b03a" href="https://www.businessinsider.com/jet-walmart-weapon-vs-amazon-2017-9?utm_source=intl&amp;utm_medium=ingest">  Business Insider </a></p>

<h1> Jet offers Walmart access to urban customers, and the fact that its a digitally native brand means Walmart can expand its online reach further. </h1>

<h1> Walmart ended the ShippingPass program in 2017, just two years after its launch. It began offering free two-day shipping to all customers who spent $35 or more. </h1>

Amazon and Walmart have been battling for retail dominance for 15 years — and there’s no end in sight (WMT, AMZN)

<p> are both loved by shoppers for a number of reasons, including the low prices that both stores have on a huge variety of products.</p>

<p>Kohl's <a id="fcc48d54-7067-3655-a209-ed03ee4e5dff" href="https://corporate.kohls.com/content/dam/kohlscorp/news/2018/november/q3-earnings/Earnings%20Release%202018%20Q3.pdf">  recently reported </a> that comparable sales were up 2.5% in the third quarter, while <a id="7009df7e-b7f7-3cd3-a57d-c0d0fc582b47" href="https://www.burlingtoninvestors.com/news-releases/news-release-details/burlington-stores-inc-reports-third-quarter-2018-results-above">  Burlington reported </a> last week that comparable sales were up 4.4% in the third quarter.</p>

<p>While Burlington has 679 stores in the United States, Kohl's has more than 1,100.</p>

<p>Both stores are <a id="0fcef99f-c045-3a15-a580-a48c2bd67083" href="https://www.businessinsider.com/american-middle-class-disappearing-department-stores-suffer-2018-6?utm_source=intl&amp;utm_medium=ingest">  benefiting from a disappearing middle class </a> and a higher demand for budget options — two factors that have been hurting traditional department stores. In addition, because most Kohl's stores are located in suburban strip malls rather than shopping malls, it's less likely to be affected by the declining foot traffic that has hurt malls and the retailers that depend on them.</p>

<p>Even though Kohl's is a department store and Burlington is an off-price retailer, upon visiting the two stores we found that they were similar in many ways — the styles and quality of the products were nearly identical, and both offered recognizable brands for low prices.</p>

<p>But one store was better than the other for a key reason:</p>

<h1> Burlington, in New Yorks Flatiron District, was my first stop. </h1>

<h1> Christmas decorations and seasonal products were set up to the left of the entryway. </h1>

<h1> Womens clothing was on the right. </h1>

<h1> That section took up most of the first floor. The aisles seemed to go on forever. </h1>

<h1> The aisles were very narrow and difficult to walk through, especially if more than one person was trying to shop. </h1>

<h1> There was an overwhelming amount of clothing to go through. I saw a lot of recognizable brands like Calvin Klein and Tommy Hilfiger, and most of the name-brand products were under $35. </h1>

<h1> In the back of the store was a maze of handbags from brands like Juicy Couture and Betsey Johnson. </h1>

<h1> There were a lot of makeup and beauty products at low prices ... </h1>

<h1> ... and even more womens clearance items. A lot of the in-store displays were pretty messy. </h1>

<h1> There were a lot of snacks and small products for sale by the register, which had a very long line. </h1>

<h1> When I went upstairs, I noticed that the second floor had a very long line for the register as well. </h1>

<h1> There were a few aisles of shoes ... </h1>

<h1> ... but a lot of shelves were empty. The store was very no-frills. </h1>

<h1> The second floor also carried toys ... </h1>

Jessica Tyler

Articles written by the author

Here's how TJ Maxx keeps its prices so low (TJX)

We shopped at 3 of the biggest dollar-store chains in America to see which one offered the best experience, and the winner was clear (FIVE, DLTR, DG)

We shopped at Dollar General and Five Below to see which rapidly growing discount store offered a better experience, and the winner was clear (FIVE, DG)

TJ Maxx has thrived while other retailers struggle in an evolving shopping industry. We shopped there and saw why. (TJX)

Kohl's is being hailed as a winner of the retail apocalypse while other department stores struggle. We shopped there and saw why. (KSS)

Amazon and Walmart have been battling for retail dominance for 15 years — and there’s no end in sight (WMT, AMZN)

We shopped at Kohl's and Burlington to see which was a better store, and there was a clear winner (KSS, BURL)

Here's what a typical work day is like for a Halal Guys cart vendor, who prepares food for hundreds of customers, works until 5:30 in the morning, and even braves hurricanes to serve hot meals

These are the best stores to shop for toys now that Toys R Us has died

Photos show how much holiday shopping has changed in America over the years

We shopped at TJ Maxx and Burlington to see which was a better discount store, and the winner was clear for a key reason (TJX, BURL)

We compared Dunkin's first store to its brand-new 'store of the future' — and it showed how far the coffee giant has come (DNKN)

Starbucks just opened the first of its upscale, stand-alone Princi bakeries in New York — take a look inside (SBUX)