Last updated: Tuesday, 16 September 2008, 23:01 GMT
Retail Sales Down in August, but Off Price Sector Remains Strong
With the financial markets in an upheaval, buying merchandise has become even more crucial for retailers in every sector, reports the Off Price Specialist Center.
While department and specialty stores are reporting decreases in sales for the month of August, Off Price retailers like TJ Maxx are holding serve with flat sales results, which is very encouraging. The traditional retailers are also citing heavy discounts as a factor for last month’s poor back to school sales. And with fashion week buyers looking primarily for immediates at the best prices across all shows, it appears that the smartest buys were made at Off Price in anticipation of a tough holiday season.
TJ Maxx is also opening up new stores in Los Angeles and New York, while retail landlords are hoping that they and other Off Price favorites move into 2nd and 3rd generation properties vacated by big names in other areas of apparel retail. Forman Mills and Citi Trends continue to thrive in low income urban areas that are underserved with limited retail options. And Canadian counterpart Giant Tiger continues to report rising profits from their second quarter.
Not ignoring the chapter 11s and fallout of other retailers, off price concepts and their vendors are well-positioned to make a positive impact on the market. Off Price Show Group Vice President David Lapidos issued this memo to the rest of the team that speaks volumes for the opportunities in Off Price:
“Recession. Pretty ugly word. But, let’s face the facts. Everyday, TV, newspapers, trade journals, radio, and water cooler talk echo this happenstance.
“Most companies would be in the doldrums at this time, most people would fear losing whatever they possess.
“We, the Off Price Specialist Center, and the people, who make it successful, are in a different vehicle. We are actually doing something to help the economy and steady the apparel industry. We are the solution and we should be proud and let it radiate. This is our time.”