Monday, July 30, 2018

Discounters stay hot as consumers search for deals

The Chicago Tribune
As retailers scramble to find solutions to the e-commerce-fueled bricks-and-mortar crisis, department store chains like Nordstrom and Macy’s are embracing off-price models. Last Chance, Nordstrom Rack and Macy’s Backstage — along with traditional discounters like TJ Maxx — have continued attracting shoppers with the promise of a treasure hunt, something online merchants can’t quite replicate. Sears, Carson’s and other onetime retail giants are closing stores or going out of business, but off-price chains have plans to open hundreds of new stores in the coming years.

However, some industry experts caution that a lack of emphasis on online sales, coupled with problems obtaining enough high-quality merchandise to meet demand, could disrupt the discounters’ momentum, which may already be slowing down. At Nordstrom Rack, TJ Maxx, Ross Dress for Less and Burlington Coat Factory, for example, sales at existing stores have been growing at a slower pace over the past three quarters.. . . more