Coronavirus

TK Maxx reduces prices even more to get rid of goods

At TK Maxx, everything is cheaper than usual.

NewsABC.net / Mary Hanbury

  • TK Maxx’s parent company announced that it would have to cut prices more than would normally be the case this time of year.
  • The additional discounts are designed to help the retailer clear inventory that could not be sold during the Corona closings.
  • “As a company, we are very firm in clearing the goods,” said President and Chief Ernie Herrman.

Has your local TK-Maxx store opened again? Then you can look forward to even more discounts than usual.

Ernie Herrman is the chief and president of TJX Companies, the parent company of TK Maxx, Marshalls and HomeGoods. On Thursday, he announced that retailers would need to cut prices more than usual to clear inventory. These are in closed shops and distribution centers.

Herrman also said that the company’s top priority is to sell seasonal items. So they were discounted first.

“We lowered prices much more than we would normally do this time of year,” said Herrman during the company’s earnings review for the first quarter.

“However, as soon as we have reduced this inventory, we are well prepared to bring new, more up-to-date goods into our stores,” he added.

On March 19, TJX closed all of its stores, distribution centers and offices worldwide. With the reopening of the stores the group started on May 2nd. By Thursday, more than 1,600 stores worldwide were reopened, including stores in 25 U.S. states and all locations in Germany, Poland, Austria, the Netherlands, and Australia. The company expects all branches to be open again by the end of June.

Retailers struggle with overcrowded warehouses

Overstock in stores is a problem that many retailers who have had to close during the pandemic are now facing. Sorting will be required in the coming weeks. Many will likely discount their products heavily to find buyers quickly. Others could start sending more items to low-priced retailers like TK Maxx. Others may try to sell seasonal items again next year.

Herrman was confident that TJX’s stores, which offer excess inventory from full-price brands, will benefit from this situation.

“The market is overflowing with stocks. I am convinced that we will get plenty of high quality brands and goods that we can offer consumers, ”he said.

“As a company, we are very determined in clearing the goods,” he added.

Although TJX had a net loss of $ 887.5 million for the quarter, management is certain that customers will be happy to return to business. The first signs of this are already there.

“The first sales figures from the more than 1,100 stores that reopened a week ago were even higher than in the previous year. And in all US states and countries, ”said the company in a press release. “However, it is still early in the quarter and sales could fluctuate.”

This article has been translated and edited by Ilona Tomić from English. You can read the original here.

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